Philip Beneish M Score

PM -  USA Stock  

USD 87.35  1.33  1.50%

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

Philip Beneish M Score 

 
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Philip Morris Issuance Repayment of Debt Securities is relatively stable at the moment as compared to the past year. The company's current value of Issuance Repayment of Debt Securities is estimated at 1.51 Billion. Long Term Debt to Equity is expected to hike to 62.88 this year, although the value of Debt Current will most likely fall to nearly 2.7 B. Philip Morris Inventory Turnover is relatively stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 1.20. Accounts Payable Turnover is expected to hike to 11.56 this year, although the value of Cash Flow Per Share will most likely fall to 5.74.
At this time, it appears that Philip Morris Intern is a possible manipulator. The earnings manipulation may begin if Philip Morris' 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 Philip Morris 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 Philip Morris' 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.
-2.16
Beneish M Score - Possible Manipulator
Elasticity of Receivables
0.87
Asset Quality
0.92
Expense Coverage
0.88
Gross Margin Strengs
1.09
Accruals Factor
0.88
Depreciation Resistance
1.0
Net Sales Growth
1.12
Financial Leverage Condition
0.98

Philip Morris 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 Philip Morris' 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
Revenues32 B28.7 B
Moderately Up
Increasing
Very volatile
Selling General and Administrative Expense5.7 B5.8 B
Fairly Down
Decreasing
Very volatile
Net Cash Flow from Operations10.5 B9.8 B
Notably Up
Increasing
Stable
Depreciation Amortization and Accretion703.8 M668.7 M
Sufficiently Up
Decreasing
Slightly volatile
Total Assets39.8 B44.8 B
Fairly Down
Increasing
Slightly volatile
Investments1.3 B1.2 B
Significantly Up
Decreasing
Slightly volatile
Investments Non Current1.3 B1.2 B
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net7.3 BB
Sufficiently Up
Increasing
Stable
Trade and Non Trade Receivables3.1 B3.1 B
Sufficiently Down
Decreasing
Stable
Total Liabilities50 B57.4 B
Fairly Down
Increasing
Slightly volatile
Current Assets18.7 B21.5 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current17.4 B17.3 B
Slightly Up
Decreasing
Slightly volatile
Current Liabilities17.2 B19.6 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current24 B28.2 B
Fairly Down
Increasing
Slightly volatile
Total Debt22.4 B26.2 B
Fairly Down
Increasing
Slightly volatile
Debt Current2.7 B2.9 B
Significantly Down
Increasing
Very volatile
Debt Non Current19.8 B23.3 B
Fairly Down
Increasing
Slightly volatile
Operating Income13 B11.7 B
Moderately Up
Decreasing
Stable
Gross Margin72.8266.6516
Significantly Up
Increasing
Slightly volatile

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

About Philip Morris 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.

Cost of Revenue

49.01 BillionShare
Philip Morris Cost of Revenue is relatively stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 49.01 Billion

Philip Morris 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 Philip Morris. 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)
Revenues26.68 B28.75 B29.62 B29.8 B28.69 B32 B
Total Assets36.85 B42.97 B39.8 B42.88 B44.81 B39.77 B
Current Assets17.61 B21.59 B19.44 B20.51 B21.49 B18.74 B
Total Liabilities49.54 B55.05 B52.26 B54.45 B57.38 B50.01 B
Current Liabilities16.47 B15.96 B17.19 B18.83 B19.61 B17.22 B
Operating Income10.81 B11.5 B11.38 B10.53 B11.67 B12.99 B
Gross Margin65.0564.8163.7163.6964.7372.82

About Philip Morris Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Philip Morris International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Philip Morris using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Philip Morris International 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.
Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories. Philip Morris International Inc. was incorporated in 1987 and is headquartered in New York, New York. Philip Morris operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 71000 people.

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