Kempharm Beneish M Score

KMPH -  USA Stock  

USD 10.75  0.24  2.18%

This module uses fundamental data of Kempharm to approximate the value of its Beneish M Score. Kempharm 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 Kempharm Piotroski F Score and Kempharm Altman Z Score analysis.

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Kempharm Issuance Repayment of Debt Securities is most likely to in the upcoming years. The last year's value of Issuance Repayment of Debt Securities was reported at 2.82 Million. Kempharm Tangible Assets Book Value per Share are most likely to decrease significantly in the upcoming years. The last year's value of Tangible Assets Book Value per Share was reported at 2.82
At this time, it appears that Kempharm is an unlikely manipulator. The earnings manipulation may begin if Kempharm'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 Kempharm 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 Kempharm'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.
-4.22
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.83
Asset Quality
0.88
Expense Coverage
1.09
Gross Margin Strengs
0.99
Accruals Factor
1.09
Depreciation Resistance
0.94
Net Sales Growth
1.1
Financial Leverage Condition
1.01

Kempharm 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 Kempharm'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
Revenues14.6 M13.3 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense9.4 M7.9 M
Fairly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion262.3 K273 K
Sufficiently Down
Increasing
Slightly volatile
Total Assets11.5 M11.2 M
Fairly Up
Increasing
Stable
InvestmentsM2.9 M
Fairly Up
Decreasing
Slightly volatile
Investments CurrentM2.9 M
Fairly Up
Decreasing
Slightly volatile
Investments Non CurrentM2.9 M
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net2.1 M2.4 M
Moderately Down
Increasing
Slightly volatile
Trade and Non Trade Receivables2.3 M2.6 M
Moderately Down
Decreasing
Slightly volatile
Total Liabilities82.9 M77.6 M
Notably Up
Increasing
Slightly volatile
Current Assets8.6 M8.4 M
Fairly Up
Increasing
Stable
Assets Non Current3.7 M2.8 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities8.4 M7.5 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current74.5 M70.1 M
Notably Up
Increasing
Slightly volatile
Total Debt70.5 M70.4 M
Slightly Up
Increasing
Slightly volatile
Debt Current735.9 K717 K
Fairly Up
Decreasing
Slightly volatile
Debt Non Current68.9 M69.6 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Kempharm 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

262,296Share
Kempharm Depreciation Amortization and Accretion is most likely to increase significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 273,000

Kempharm 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 Kempharm. 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)
Total Assets84.89 M52.46 M26.75 M10.51 M11.21 M11.5 M
Current Assets74.36 M45.9 M23.72 M6.97 M8.38 M8.6 M
Assets Non Current10.53 M6.56 M3.02 M3.54 M2.83 M3.72 M
Total Liabilities103.58 M109.97 M93.31 M84.96 M77.62 M82.85 M
Current Liabilities6.64 M11.51 M12 M5.43 M7.54 M8.35 M
Total Debt91.98 M93.48 M82.05 M79.53 M70.35 M70.48 M
Debt Current157 K3.52 M3.55 M284 K717 K735.87 K
Debt Non Current91.83 M89.96 M78.5 M79.24 M69.64 M68.92 M
Operating Income(37.48 M)(33.37 M)(55.9 M)(20.34 M)(5.61 M)(6.05 M)

About Kempharm Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kempharm's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kempharm using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kempharm 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.
KemPharm, Inc., a specialty pharmaceutical company, discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company was incorporated in 2006 and is headquartered in Celebration, Florida. Kempharm operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 22 people.

Kempharm Investors Sentiment

The influence of Kempharm'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 Kempharm. 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 - KMPH

Kempharm Investor Sentiment

Most of Macroaxis users are now bullish on Kempharm. What is your trading attitude regarding investing in Kempharm? Are you bullish or bearish?
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98% Bullish
2% Bearish
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Please see Kempharm Piotroski F Score and Kempharm Altman Z Score analysis. Note that the Kempharm information on this page should be used as a complementary analysis to other Kempharm'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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The market value of Kempharm is measured differently than its book value, which is the value of Kempharm that is recorded on the company's balance sheet. Investors also form their own opinion of Kempharm's value that differs from its market value or its book value, called intrinsic value, which is Kempharm'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 Kempharm's market value can be influenced by many factors that don't directly affect Kempharm underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kempharm's value and its price as these two are different measures arrived at by different means. Investors typically determine Kempharm value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kempharm'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.