Harte Beneish M Score

HRTH -  USA Stock  

USD 7.10  0.12  1.66%

This module uses fundamental data of Harte Hanks to approximate the value of its Beneish M Score. Harte Hanks M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Harte Hanks Piotroski F Score and Harte Hanks Altman Z Score analysis.

Harte Beneish M Score 

 
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Harte Hanks Debt Non Current is most likely to decrease significantly in the upcoming years. The last year's value of Debt Non Current was reported at 43.47 Million. The current Issuance Repayment of Debt Securities is estimated to increase to about 8.6 M, while Debt to Equity Ratio is projected to decrease to (3.15) . Harte Hanks Dividend Yield is most likely to increase slightly in the upcoming years. The last year's value of Dividend Yield was reported at 0.12. The current Dividends per Basic Common Share is estimated to increase to 4.00, while Book Value per Share is projected to decrease to (8.43) .
At this time, it appears that Harte-Hanks is an unlikely manipulator. The earnings manipulation may begin if Harte Hanks' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Harte Hanks executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Harte Hanks' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.62
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.49
Asset Quality
N/A
Expense Coverage
1.41
Gross Margin Strengs
1.07
Accruals Factor
1.41
Depreciation Resistance
1.01
Net Sales Growth
1.03
Financial Leverage Condition
1.24

Harte Hanks Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Harte Hanks' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues181.6 M176.9 M
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense181.2 M125.2 M
Way Up
Decreasing
Slightly volatile
Net Cash Flow from Operations(8 M)(7.8 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion3.7 M3.6 M
Fairly Up
Decreasing
Slightly volatile
Total Assets122.6 M119.5 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net31.8 M30.6 M
Sufficiently Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables63.5 M41.5 M
Way Up
Decreasing
Slightly volatile
Total Liabilities204.6 M162.9 M
Significantly Up
Decreasing
Slightly volatile
Current Assets122.6 M86.2 M
Significantly Up
Decreasing
Slightly volatile
Assets Non Current34.1 M33.3 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities74.5 M47.2 M
Way Up
Decreasing
Slightly volatile
Liabilities Non Current130.1 M115.7 M
Moderately Up
Decreasing
Slightly volatile
Total Debt64.5 M48.4 M
Significantly Up
Decreasing
Slightly volatile
Debt Current4.6 M4.4 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current50 M43.5 M
Fairly Up
Decreasing
Slightly volatile
Operating Income(10.9 M)(10.6 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.770.721
Notably Up
Increasing
Slightly volatile

Harte-Hanks Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Harte Hanks' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Harte Hanks in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Harte Hanks' degree of accounting gimmicks and manipulations.

About Harte Hanks Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

3.71 MillionShare
Harte Hanks Depreciation Amortization and Accretion is most likely to decrease significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 3.62 Million

Harte Hanks Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Harte Hanks. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues404.41 M383.91 M284.63 M217.58 M176.9 M181.56 M
Total Assets213.44 M130.81 M125.17 M110.2 M119.5 M122.64 M
Current Assets149.43 M103.21 M104.99 M79.3 M86.24 M122.56 M
Assets Non Current64.01 M27.61 M20.18 M30.9 M33.26 M34.14 M
Total Liabilities210.78 M165.45 M134.64 M150.16 M162.9 M204.6 M
Current Liabilities104.67 M67.25 M54.16 M45.53 M47.19 M74.47 M
Total Debt82.69 M77.11 M14.2 M31.78 M48.4 M64.53 M
Debt Non Current64.31 M74.11 M14.2 M31.78 M43.47 M49.96 M
Operating Income(53.84 M)(40.87 M)(26.03 M)(21.61 M)(10.58 M)(10.85 M)

About Harte Hanks Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Harte-Hanks's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Harte Hanks using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Harte-Hanks based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Harte Hanks, Inc. operates as a customer experience company in the United States and internationally. Harte Hanks, Inc. was founded in 1923 and is headquartered in Austin, Texas. Harte Hanks operates under Advertising Agencies classification in the United States and is traded on OTC Exchange. It employs 2500 people.

Harte Hanks Investors Sentiment

The influence of Harte Hanks' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Harte. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - HRTH

Harte-Hanks Investor Sentiment

Macroaxis portfolio users are indifferent in their judgment towards investing in Harte-Hanks. What is your judgment towards investing in Harte-Hanks? Are you bullish or bearish?
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Please check Harte Hanks Piotroski F Score and Harte Hanks Altman Z Score analysis. Note that the Harte-Hanks information on this page should be used as a complementary analysis to other Harte Hanks' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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Is Harte Hanks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Harte Hanks. If investors know Harte will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Harte Hanks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Harte-Hanks is measured differently than its book value, which is the value of Harte that is recorded on the company's balance sheet. Investors also form their own opinion of Harte Hanks' value that differs from its market value or its book value, called intrinsic value, which is Harte Hanks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Harte Hanks' market value can be influenced by many factors that don't directly affect Harte Hanks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Harte Hanks' value and its price as these two are different measures arrived at by different means. Investors typically determine Harte Hanks value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Harte Hanks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.