Netlist Beneish M Score

NLST -  USA Stock  

USD 8.39  0.18  2.19%

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

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Debt Non Current is likely to gain to about 7.6 M in 2021, whereas Total Debt is likely to drop slightly above 18.9 M in 2021. Netlist Current Ratio is comparatively stable at the moment as compared to the past year. Netlist reported Current Ratio of 0.90 in 2020. Gross Margin is likely to gain to 0.28 in 2021, whereas Debt to Equity Ratio is likely to drop (26.00)  in 2021.
At this time, it appears that Netlist is a possible manipulator. The earnings manipulation may begin if Netlist'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 Netlist 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 Netlist'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.
-0.8
Beneish M Score - Possible Manipulator
Elasticity of Receivables
0.97
Asset Quality
1.57
Expense Coverage
1.48
Gross Margin Strengs
1.96
Accruals Factor
1.48
Depreciation Resistance
1.38
Net Sales Growth
0.75
Financial Leverage Condition
0.97

Netlist 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 Netlist'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
Revenues35.2 M47.2 M
Way Down
Increasing
Stable
Selling General and Administrative Expense9.1 M8.2 M
Significantly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion485.8 K636 K
Way Down
Decreasing
Slightly volatile
Total Assets23.8 M25.3 M
Notably Down
Decreasing
Slightly volatile
Investments571.4 K399.6 K
Way Up
Decreasing
Slightly volatile
Investments Current457.4 K373.5 K
Fairly Up
Decreasing
Slightly volatile
Investments Non Current491.2 K399.6 K
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net495.3 K296 K
Way Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables3.4 M4.7 M
Way Down
Decreasing
Stable
Total Liabilities25.5 M27.9 M
Significantly Down
Increasing
Slightly volatile
Current Assets23.2 M24.9 M
Significantly Down
Decreasing
Slightly volatile
Assets Non Current562.6 K354 K
Way Up
Decreasing
Slightly volatile
Current Liabilities17.8 M27.6 M
Way Down
Increasing
Slightly volatile
Liabilities Non Current7.7 M248 K
Way Up
Decreasing
Stable
Total Debt18.9 M20.9 M
Moderately Down
Increasing
Slightly volatile
Debt Current11.3 M20.7 M
Way Down
Increasing
Slightly volatile
Debt Non Current7.6 M146 K
Way Up
Decreasing
Stable
Gross Margin0.280.143
Way Up
Decreasing
Slightly volatile

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

About Netlist 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

485,789Share
Netlist Depreciation Amortization and Accretion is comparatively stable at the moment as compared to the past year. Netlist reported Depreciation Amortization and Accretion of 636,000 in 2020

About Netlist Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Netlist's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Netlist using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Netlist 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.
Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California. Netlist operates under Semiconductors classification in the United States and is traded on OTC Exchange. It employs 70 people.

Netlist Investors Sentiment

The influence of Netlist'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 Netlist. 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 - NLST

Netlist Investor Sentiment

Most of Macroaxis users are now bullish on Netlist. What is your trading attitude regarding investing in Netlist? Are you bullish or bearish?
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Bearish
98% Bullish
2% Bearish
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Additionally, see Netlist Piotroski F Score and Netlist Altman Z Score analysis. Note that the Netlist information on this page should be used as a complementary analysis to other Netlist'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Netlist price analysis, check to measure Netlist'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 Netlist is operating at the current time. Most of Netlist's value examination focuses on studying past and present price action to predict the probability of Netlist's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Netlist's price. Additionally, you may evaluate how the addition of Netlist to your portfolios can decrease your overall portfolio volatility.
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The market value of Netlist is measured differently than its book value, which is the value of Netlist that is recorded on the company's balance sheet. Investors also form their own opinion of Netlist's value that differs from its market value or its book value, called intrinsic value, which is Netlist'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 Netlist's market value can be influenced by many factors that don't directly affect Netlist 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 Netlist's value and its price as these two are different measures arrived at by different means. Investors typically determine Netlist value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netlist'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.