Legend Biotechcorp Stock Beneish M Score

LEGN Stock  USD 41.41  1.91  4.84%   
This module uses fundamental data of Legend BiotechCorp to approximate the value of its Beneish M Score. Legend BiotechCorp 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 Legend BiotechCorp Piotroski F Score and Legend BiotechCorp Altman Z Score analysis.
To learn how to invest in Legend Stock, please use our How to Invest in Legend BiotechCorp guide.
  
At this time, Legend BiotechCorp's Short and Long Term Debt Total is very stable compared to the past year. As of the 26th of May 2024, Interest Debt Per Share is likely to grow to 1.83, while Long Term Debt Total is likely to drop about 3.4 M. At this time, Legend BiotechCorp's Cash Per Share is very stable compared to the past year. As of the 26th of May 2024, Days Payables Outstanding is likely to grow to 48.96, while PTB Ratio is likely to drop 8.04.
At this time, it appears that Legend BiotechCorp is an unlikely manipulator. The earnings manipulation may begin if Legend BiotechCorp'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 Legend BiotechCorp 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 Legend BiotechCorp'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.
-3.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-0.8

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.04

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.88

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.88

Focus

Legend BiotechCorp 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 Legend BiotechCorp'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 Receivables164.9 M157.1 M
Sufficiently Up
Slightly volatile
Total Revenue299.4 M285.1 M
Sufficiently Up
Slightly volatile
Total Assets938.8 M1.8 B
Way Down
Slightly volatile
Total Current Assets770.5 M1.5 B
Way Down
Slightly volatile
Non Current Assets Total194.9 M350.8 M
Way Down
Slightly volatile
Property Plant Equipment100.7 M184.9 M
Way Down
Slightly volatile
Depreciation And Amortization12.8 M20.5 M
Way Down
Slightly volatile
Selling General Administrative112.1 M106.8 M
Sufficiently Up
Slightly volatile
Total Current Liabilities203.5 M216.4 M
Notably Down
Slightly volatile
Non Current Liabilities Total339.7 M373.5 M
Significantly Down
Slightly volatile
Short Term Debt1.9 M3.2 M
Way Down
Slightly volatile
Long Term Debt243 M281.3 M
Fairly Down
Slightly volatile
Short Term Investments29.5 M31 M
Notably Down
Slightly volatile

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

About Legend BiotechCorp 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 And Amortization

12.77 Million

At this time, Legend BiotechCorp's Depreciation And Amortization is very stable compared to the past year.

Legend BiotechCorp 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 Legend BiotechCorp. 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 Receivables35.8M85.0M63.2M90K157.1M164.9M
Total Revenue57.3M75.7M89.8M117.0M285.1M299.4M
Total Assets287.7M721.0M1.1B1.3B1.8B938.8M
Total Current Assets207.1M592.9M948.8M1.1B1.5B770.5M
Net Debt(77.3M)(452.3M)(566.0M)(501.5M)(949.4M)(901.9M)
Short Term Debt1.0M1.5M911K3.6M3.2M1.9M
Operating Income(130.9M)(313.3M)(393.0M)(455.8M)(442.2M)(420.1M)
Investments(58.7M)25.6M(195.0M)(78.3M)92.8M97.4M

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

About Legend BiotechCorp Fundamental Analysis

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

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Legend BiotechCorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Legend BiotechCorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Legend Biotechcorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Legend Biotechcorp Stock:
Check out Legend BiotechCorp Piotroski F Score and Legend BiotechCorp Altman Z Score analysis.
To learn how to invest in Legend Stock, please use our How to Invest in Legend BiotechCorp guide.
Note that the Legend BiotechCorp information on this page should be used as a complementary analysis to other Legend BiotechCorp'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 the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for Legend Stock analysis

When running Legend BiotechCorp's price analysis, check to measure Legend BiotechCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Legend BiotechCorp is operating at the current time. Most of Legend BiotechCorp's value examination focuses on studying past and present price action to predict the probability of Legend BiotechCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Legend BiotechCorp's price. Additionally, you may evaluate how the addition of Legend BiotechCorp to your portfolios can decrease your overall portfolio volatility.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Global Correlations
Find global opportunities by holding instruments from different markets
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Equity Valuation
Check real value of public entities based on technical and fundamental data
Is Legend BiotechCorp'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 Legend BiotechCorp. If investors know Legend 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 Legend BiotechCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.58)
Revenue Per Share
1.902
Quarterly Revenue Growth
1.587
Return On Assets
(0.18)
Return On Equity
(0.51)
The market value of Legend BiotechCorp is measured differently than its book value, which is the value of Legend that is recorded on the company's balance sheet. Investors also form their own opinion of Legend BiotechCorp's value that differs from its market value or its book value, called intrinsic value, which is Legend BiotechCorp'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 Legend BiotechCorp's market value can be influenced by many factors that don't directly affect Legend BiotechCorp'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 Legend BiotechCorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Legend BiotechCorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Legend BiotechCorp'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.