Independent Beneish M Score

INDB
 Stock
  

USD 79.08  0.62  0.79%   

This module uses fundamental data of Independent to approximate the value of its Beneish M Score. Independent 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 see Independent Piotroski F Score and Independent Altman Z Score analysis.
  
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Independent Long Term Debt is projected to decrease significantly based on the last few years of reporting. The past year's Long Term Debt was at 167.12 Million. The current year Total Debt is expected to grow to about 228.8 M, whereas Issuance Repayment of Debt Securities is forecasted to decline to (620.8 M). Independent Calculated Tax Rate is projected to slightly decrease based on the last few years of reporting. The past year's Calculated Tax Rate was at 23.83. The current year PPandE Turnover is expected to grow to 5.28, whereas Total Assets Per Share are forecasted to decline to 309.57.
At this time, it appears that Independent Bk Corp is an unlikely manipulator. The earnings manipulation may begin if Independent's 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 Independent 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 Independent's 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.
-3.8
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.92Focus
Financial Leverage Condition0.74Focus

Independent 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 Independent's 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
Revenues449.8 M489.2 M
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense210.2 M228.1 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations166.4 M190.2 M
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion26.6 M32.8 M
Significantly Down
Increasing
Slightly volatile
Total Assets22 B20.4 B
Significantly Up
Increasing
Slightly volatile
Investments13.2 B16.4 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net156.3 M195.6 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities13.8 B17.4 B
Significantly Down
Increasing
Slightly volatile
Total Debt228.8 M152.4 M
Way Up
Decreasing
Slightly volatile
Operating Income150.8 M156.7 M
Sufficiently Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Independent 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

26.65 Million

Share
Independent Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 32.82 Million

Independent 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 Independent. 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.
201720182019202020212022 (projected)
Revenues338.9 M381.89 M502.43 M426.67 M489.2 M449.77 M
Total Assets8.08 B8.85 B11.4 B13.2 B20.42 B22.04 B
Property Plant and Equipment Net94.72 M97.58 M123.67 M116.39 M195.59 M156.34 M
Depreciation Amortization and Accretion15.76 M15.63 M19.44 M27.26 M32.82 M26.65 M
Selling General and Administrative Expense155.31 M165.38 M199.78 M206.02 M228.11 M210.18 M
Total Liabilities7.14 B7.78 B9.69 B11.5 B17.4 B13.78 B
Total Debt323.7 M258.71 M303.1 M181.06 M152.37 M228.8 M
Operating Income134.54 M155.93 M219.57 M154.55 M156.68 M150.8 M
Net Cash Flow from Operations130.91 M141.84 M216.52 M64.64 M190.22 M166.36 M
Investments7.41 B8.1 B10.24 B10.71 B16.43 B13.24 B

About Independent Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Independent Bk Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Independent using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Independent Bk Corp 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.
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It also offers commercial and industrial, commercial real estate and construction, small business, consumer real estate, and personal loans. In addition, the company provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions Internet and mobile banking services, as well as estate settlement, financial planning, tax services, and other services automated teller machine and debit cards and mutual fund and unit investment trust shares, general securities, fixed and variable annuities, and life insurance products. As of December 31, 2021, it operates one hundred nineteen retail branches, two limited-service retail branches, and one mobile branch located within Barnstable, Bristol, Dukes, Essex, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester counties in Eastern Massachusetts. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

Independent Investors Sentiment

The influence of Independent's 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 Independent. 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.

Independent Implied Volatility

    
  0.0  
Independent's implied volatility exposes the market's sentiment of Independent Bk Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Independent's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Independent stock will not fluctuate a lot when Independent's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Independent in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Independent's short interest history, or implied volatility extrapolated from Independent options trading.

Current Sentiment - INDB

Independent Bk Corp Investor Sentiment

Most of Macroaxis users are currently bullish on Independent Bk Corp. What is your judgment towards investing in Independent Bk Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Please see Independent Piotroski F Score and Independent Altman Z Score analysis. Note that the Independent Bk Corp information on this page should be used as a complementary analysis to other Independent's 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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Is Independent's 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 Independent. If investors know Independent 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 Independent 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 YOY
-0.11
Market Capitalization
3.7 B
Quarterly Revenue Growth YOY
0.34
Return On Assets
0.0078
Return On Equity
0.0566
The market value of Independent Bk Corp is measured differently than its book value, which is the value of Independent that is recorded on the company's balance sheet. Investors also form their own opinion of Independent's value that differs from its market value or its book value, called intrinsic value, which is Independent's 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 Independent's market value can be influenced by many factors that don't directly affect Independent's 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 Independent's value and its price as these two are different measures arrived at by different means. Investors typically determine Independent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Independent's 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.