Loews Corp Stock Beneish M Score

L Stock  USD 78.29  0.19  0.24%   
This module uses fundamental data of Loews Corp to approximate the value of its Beneish M Score. Loews Corp 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 Loews Corp Piotroski F Score and Loews Corp Altman Z Score analysis.
For more information on how to buy Loews Stock please use our How to buy in Loews Stock guide.
  
At this time, Loews Corp's Short Term Debt is quite stable compared to the past year. Long Term Debt is expected to rise to about 9.2 B this year, although the value of Net Debt will most likely fall to about 6.9 B. At this time, Loews Corp's Pretax Profit Margin is quite stable compared to the past year. Effective Tax Rate is expected to rise to 0.24 this year, although the value of Price To Sales Ratio will most likely fall to 0.66.
At this time, Loews Corp's M Score is unavailable. The earnings manipulation may begin if Loews Corp'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 Loews Corp 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 Loews Corp'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.
-3.26
Beneish M Score - Unavailable
Elasticity of Receivables

0.95

Focus
Asset Quality

0.98

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.23

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.9

Focus

Loews Corp 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 Loews Corp'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 Receivables9.2 B9.2 B
Slightly Down
Pretty Stable
Total Revenue16.5 B15.7 B
Sufficiently Up
Slightly volatile
Total Assets70.6 B79.2 B
Fairly Down
Slightly volatile
Total Current AssetsB2.1 B
Notably Down
Pretty Stable
Non Current Assets Total89.3 M94 M
Notably Down
Slightly volatile
Property Plant Equipment11.6 B11.5 B
Slightly Up
Very volatile
Total Current Liabilities96.9 M102 M
Notably Down
Slightly volatile
Non Current Liabilities Total1.8 B1.9 B
Notably Down
Very volatile
Net Debt6.9 B8.6 B
Significantly Down
Pretty Stable
Short Term Debt1.1 B1.1 B
Sufficiently Up
Slightly volatile
Long Term Debt9.2 B7.9 B
Fairly Up
Pretty Stable
Total Cash From Operating Activities2.4 B3.9 B
Way Down
Very volatile
Short Term Investments25.9 B44.8 B
Way Down
Slightly volatile
Long Term Investments55.5 B48.2 B
Fairly Up
Pretty Stable

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

About Loews Corp 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

0.14

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

Loews Corp 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 Loews Corp. 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 Receivables7.3B7.5B8.9B9B9.2B9.2B
Total Revenue14.9B13.8B14.1B14.0B15.7B16.5B
Total Assets82.2B80.2B81.6B75.5B79.2B70.6B
Total Current Assets54.4B57.2B58.8B2.8B2.1B2.0B
Net Debt11.2B9.6B8.5B8.5B8.6B6.9B
Short Term Debt77M37M93M854M1.1B1.1B
Long Term Debt11.5B10.1B9.0B8.2B7.9B9.2B
Operating Income(3.9B)(5.3B)(1.5B)652M(2.2B)(2.1B)
Investments722M(4M)(1.3B)(1.7B)(2.8B)(2.7B)

Loews Corp 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, Loews Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Loews Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Loews Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Loews Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Loews Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Loews 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.
Loews Corporation provides commercial property and casualty insurance in the United States and internationally. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York. Loews Corp operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 10340 people.

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When determining whether Loews Corp is a strong investment it is important to analyze Loews Corp's 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 Loews Corp's future performance. For an informed investment choice regarding Loews Stock, refer to the following important reports:
Check out Loews Corp Piotroski F Score and Loews Corp Altman Z Score analysis.
For more information on how to buy Loews Stock please use our How to buy in Loews Stock guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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Is Loews Corp'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 Loews Corp. If investors know Loews 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 Loews Corp 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
0.334
Dividend Share
0.25
Earnings Share
6.29
Revenue Per Share
69.901
Quarterly Revenue Growth
0.123
The market value of Loews Corp is measured differently than its book value, which is the value of Loews that is recorded on the company's balance sheet. Investors also form their own opinion of Loews Corp's value that differs from its market value or its book value, called intrinsic value, which is Loews Corp'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 Loews Corp's market value can be influenced by many factors that don't directly affect Loews Corp'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 Loews Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Loews Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Loews Corp'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.