Hywin Holdings Ltd Stock Beneish M Score

HYW Stock  USD 0.52  0.01  1.96%   
This module uses fundamental data of Hywin Holdings to approximate the value of its Beneish M Score. Hywin Holdings 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. Check out Hywin Holdings Piotroski F Score and Hywin Holdings Altman Z Score analysis.
  
At this time, Hywin Holdings' Short and Long Term Debt Total is fairly stable compared to the past year. Short and Long Term Debt is likely to climb to about 3.3 M in 2024, despite the fact that Net Debt To EBITDA is likely to grow to (2.74). At this time, Hywin Holdings' PFCF Ratio is fairly stable compared to the past year. ROE is likely to climb to 0.14 in 2024, whereas Book Value Per Share is likely to drop 20.20 in 2024.
At this time, it appears that Hywin Holdings is an unlikely manipulator. The earnings manipulation may begin if Hywin Holdings' 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 Hywin Holdings 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 Hywin Holdings' 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.
-3.68
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.7

Focus
Asset Quality

-0.39

Focus
Expense Coverage

0.94

Focus
Gross Margin Strengs

1.09

Focus
Accruals Factor

0.94

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.72

Focus
Financial Leverage Condition

0.31

Focus

Hywin Holdings 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 Hywin Holdings' 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
Net Receivables494.8 M403.8 M
Fairly Up
Slightly volatile
Total Revenue1.7 B2.4 B
Way Down
Slightly volatile
Total Assets1.5 B2.7 B
Way Down
Slightly volatile
Total Current Assets1.2 B1.7 B
Way Down
Slightly volatile
Non Current Assets Total1.1 BB
Sufficiently Up
Slightly volatile
Property Plant Equipment647.2 M616.4 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization90.9 M86.5 M
Sufficiently Up
Slightly volatile
Selling General Administrative239.5 M353.5 M
Way Down
Slightly volatile
Total Current Liabilities679 M1.2 B
Way Down
Slightly volatile
Non Current Liabilities Total146.2 M139.2 M
Sufficiently Up
Slightly volatile
Short Term Debt100.9 M96.1 M
Sufficiently Up
Slightly volatile
Operating Income213.8 M227 M
Notably Down
Slightly volatile
Total Cash From Operating Activities634.3 M604.1 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.510.47
Significantly Up
Slightly volatile

Hywin Holdings 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 Hywin Holdings' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Hywin Holdings in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Hywin Holdings' degree of accounting gimmicks and manipulations.

About Hywin Holdings 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.

Other Operating Expenses

1.51 Billion

At this time, Hywin Holdings' Other Operating Expenses is fairly stable compared to the past year.

Hywin Holdings 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 Hywin Holdings. 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.
201920202021202220232024 (projected)
Net Receivables725.5M720.2M630.5M448.6M403.8M494.8M
Total Revenue1.3B1.8B1.9B2.1B2.4B1.7B
Total Assets1.0B1.5B1.8B2.4B2.7B1.5B
Total Current Assets957.3M1.5B1.3B1.5B1.7B1.2B
Net Debt(106.3M)(437.0M)(523.1M)(684.8M)(616.3M)(585.5M)
Short Term Debt2.0M2.3M2M83.6M96.1M100.9M
Operating Income159.0M281.6M326.7M197.4M227.0M213.8M
Investments(43.4M)(14.6M)(1M)(248.7M)(223.8M)(212.6M)

About Hywin Holdings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Hywin Holdings Ltd's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hywin Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hywin Holdings Ltd 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.

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When determining whether Hywin Holdings is a strong investment it is important to analyze Hywin Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hywin Holdings' future performance. For an informed investment choice regarding Hywin Stock, refer to the following important reports:
Check out Hywin Holdings Piotroski F Score and Hywin Holdings Altman Z Score analysis.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Hywin Holdings' 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 Hywin Holdings. If investors know Hywin 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 Hywin Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Earnings Share
0.63
Revenue Per Share
74.706
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0707
The market value of Hywin Holdings is measured differently than its book value, which is the value of Hywin that is recorded on the company's balance sheet. Investors also form their own opinion of Hywin Holdings' value that differs from its market value or its book value, called intrinsic value, which is Hywin Holdings' 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 Hywin Holdings' market value can be influenced by many factors that don't directly affect Hywin Holdings' 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 Hywin Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hywin Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hywin Holdings' 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.