Kellanova Stock Beneish M Score

K Stock  USD 61.64  0.61  0.98%   
This module uses fundamental data of Kellanova to approximate the value of its Beneish M Score. Kellanova 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 Kellanova Piotroski F Score and Kellanova Altman Z Score analysis.
For more information on how to buy Kellanova Stock please use our How to buy in Kellanova Stock guide.
  
At this time, Kellanova's Interest Debt Per Share is quite stable compared to the past year. Debt Equity Ratio is expected to rise to 1.82 this year, although the value of Net Debt To EBITDA will most likely fall to 1.82. At this time, Kellanova's ROIC is quite stable compared to the past year. Inventory Turnover is expected to rise to 5.53 this year, although the value of Free Cash Flow Yield will most likely fall to 0.04.
At this time, Kellanova's M Score is unavailable. The earnings manipulation may begin if Kellanova'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 Kellanova 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 Kellanova'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.
-2.65
Beneish M Score - Unavailable
Elasticity of Receivables

0.79

Focus
Asset Quality

0.97

Focus
Expense Coverage

1.44

Focus
Gross Margin Strengs

1.46

Focus
Accruals Factor

1.44

Focus
Depreciation Resistance

0.79

Focus
Net Sales Growth

0.81

Focus
Financial Leverage Condition

1.0

Focus

Kellanova 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 Kellanova'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
Net ReceivablesB1.6 B
Way Down
Slightly volatile
Total Revenue10.6 B13.1 B
Significantly Down
Slightly volatile
Total Assets10.7 B15.6 B
Way Down
Slightly volatile
Total Current Assets2.4 B3.3 B
Way Down
Slightly volatile
Non Current Assets Total8.3 B12.3 B
Way Down
Slightly volatile
Property Plant Equipment3.7 B5.1 B
Way Down
Slightly volatile
Depreciation And Amortization395.1 M419 M
Notably Down
Slightly volatile
Selling General Administrative3.2 B2.8 B
Fairly Up
Slightly volatile
Total Current Liabilities3.2 B5.1 B
Way Down
Slightly volatile
Non Current Liabilities Total5.3 B7.2 B
Way Down
Slightly volatile
Net Debt4.5 B6.3 B
Way Down
Pretty Stable
Short Term Debt955 M905 M
Notably Up
Very volatile
Long Term Debt5.7 B5.1 B
Moderately Up
Slightly volatile
Operating Income1.5 B1.5 B
Fairly Up
Very volatile
Total Cash From Operating Activities1.4 B1.6 B
Fairly Down
Pretty Stable
Long Term Investments174.8 M184 M
Notably Down
Slightly volatile
Gross Profit Margin0.510.35
Way Up
Very volatile

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

About Kellanova 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.

Pretax Profit Margin

0.0899

At this time, Kellanova's Pretax Profit Margin is quite stable compared to the past year.

Kellanova 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 Kellanova. 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 Receivables1.6B1.5B1.5B1.7B1.6B1.0B
Total Revenue13.6B13.8B14.2B15.3B13.1B10.6B
Total Assets17.6B18.0B18.2B18.5B15.6B10.7B
Total Current Assets3.4B3.5B3.4B4.2B3.3B2.4B
Net Debt8.1B7.7B7.4B6.9B6.3B4.5B
Short Term Debt841M846M965M1.4B905M955.0M
Long Term Debt7.2B6.7B6.3B5.3B5.1B5.7B
Operating Income1.4B1.8B1.8B1.6B1.5B1.5B
Investments65M(62M)1M(448M)(562M)(533.9M)

Kellanova ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Kellanova's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Kellanova's managers, analysts, and investors.
Environmental
Governance
Social

About Kellanova Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kellanova's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kellanova using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kellanova 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 Kellanova is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Kellanova Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Kellanova Stock. Highlighted below are key reports to facilitate an investment decision about Kellanova Stock:
Check out Kellanova Piotroski F Score and Kellanova Altman Z Score analysis.
For more information on how to buy Kellanova Stock please use our How to buy in Kellanova Stock guide.
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Is Kellanova'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 Kellanova. If investors know Kellanova 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 Kellanova 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
(0.10)
Dividend Share
2.31
Earnings Share
2.36
Revenue Per Share
37.971
Quarterly Revenue Growth
(0.04)
The market value of Kellanova is measured differently than its book value, which is the value of Kellanova that is recorded on the company's balance sheet. Investors also form their own opinion of Kellanova's value that differs from its market value or its book value, called intrinsic value, which is Kellanova'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 Kellanova's market value can be influenced by many factors that don't directly affect Kellanova'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 Kellanova's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kellanova is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kellanova'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.