Lipocine Beneish M Score

LPCN -  USA Stock  

USD 1.14  0.02  1.79%

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

Lipocine Beneish M Score 

 
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Lipocine Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 6.17 Million. Debt Non Current is expected to rise to about 3 M this year, although the value of Debt Current will most likely fall to about 3 M. Lipocine Current Ratio is quite stable at the moment as compared to the past year. The company's current value of Current Ratio is estimated at 3.95. Sales per Share is expected to rise to 0.005542 this year, although the value of Cash Flow Per Share will most likely fall to (0.30) .
At this time, it appears that Lipocine is an unlikely manipulator. The earnings manipulation may begin if Lipocine'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 Lipocine 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 Lipocine'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.
-3.0
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.97
Asset Quality
0.84
Expense Coverage
0.89
Gross Margin Strengs
0.99
Accruals Factor
0.89
Depreciation Resistance
1.0
Net Sales Growth
1.03
Financial Leverage Condition
0.85

Lipocine 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 Lipocine'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
Revenues152.4 K148.5 K
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense7.6 M8.2 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion3.6 K3.6 K
Fairly Up
Decreasing
Slightly volatile
Total Assets27.4 M25.4 M
Significantly Up
Increasing
Slightly volatile
Investments461.8 K450 K
Fairly Up
Decreasing
Slightly volatile
Investments Current461.8 K450 K
Fairly Up
Decreasing
Slightly volatile
Investments Non Current358.1 K360.2 K
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net3.3 K3.2 K
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables3.4 K3.4 K
Slightly Down
Decreasing
Slightly volatile
Total Liabilities8.1 M10 M
Significantly Down
Increasing
Slightly volatile
Current Assets27.4 M25.3 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current24.4 K23.8 K
Fairly Up
Decreasing
Stable
Current Liabilities5.2 M6.6 M
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current4.5 M3.4 M
Significantly Up
Increasing
Slightly volatile
Total Debt6.2 M5.6 M
Significantly Up
Decreasing
Slightly volatile
Debt CurrentMM
Slightly Down
Decreasing
Slightly volatile
Debt Non CurrentM2.3 M
Significantly Up
Decreasing
Slightly volatile
Operating Income(19.4 M)(18 M)
Significantly Down
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Lipocine 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

3,647.53Share
Lipocine Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 3,648

About Lipocine Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lipocine's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lipocine using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lipocine 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.
Lipocine Inc., a clinical-stage biopharmaceutical company, focuses on the development of pharmaceutical products for the treatment of metabolic and endocrine disorders. The companys pipeline candidates also include LPCN 1144, an oral prodrug of bioidentical testosterone that is in Phase II Clinical trial for the treatment of non-cirrhotic non-alcoholic steatohepatitis TLANDO XR, an oral prodrug of testosterone for once daily dosing, which has completed Phase II clinical trial in hypogonadal men LPCN 1148, an oral prodrug of bioidentical testosterone that has completed phase I clinical trial for the treatment of NASH cirrhosis and LPCN 1107, an oral hydroxyprogesterone caproate product that has completed dose finding Phase II clinical trial for the prevention of recurrent preterm birth. Lipocine operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 11 people.

Lipocine Investors Sentiment

The influence of Lipocine'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 Lipocine. 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.

Lipocine Implied Volatility

    
  366.31  
Lipocine's implied volatility exposes the market's sentiment of Lipocine stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lipocine'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 Lipocine stock will not fluctuate a lot when Lipocine'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 Lipocine 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, Lipocine's short interest history, or implied volatility extrapolated from Lipocine options trading.

Current Sentiment - LPCN

Lipocine Investor Sentiment

Most of Macroaxis users are now bullish on Lipocine. What is your trading attitude regarding investing in Lipocine? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Additionally, see Lipocine Piotroski F Score and Lipocine Altman Z Score analysis. Note that the Lipocine information on this page should be used as a complementary analysis to other Lipocine'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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Is Lipocine'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 Lipocine. If investors know Lipocine 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 Lipocine listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lipocine is measured differently than its book value, which is the value of Lipocine that is recorded on the company's balance sheet. Investors also form their own opinion of Lipocine's value that differs from its market value or its book value, called intrinsic value, which is Lipocine'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 Lipocine's market value can be influenced by many factors that don't directly affect Lipocine'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 Lipocine's value and its price as these two are different measures arrived at by different means. Investors typically determine Lipocine value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lipocine'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.