Peloton Interactive Stock Beneish M Score
| PTON Stock | USD 3.05 0.02 0.66% |
Peloton | Beneish M Score |
At this time, it appears that Peloton Interactive is an unlikely manipulator. The earnings manipulation may begin if Peloton Interactive'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 Peloton Interactive 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 Peloton Interactive'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.
-3.54
Beneish M Score - Unlikely Manipulator
Peloton Interactive 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 Peloton Interactive'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 117.4 M | 111.8 M |
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| Total Revenue | 2.2 B | 3.2 B |
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| Total Assets | 2.5 B | 3.2 B |
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| Total Current Assets | 1.6 B | 1.9 B |
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| Non Current Assets Total | 985.6 M | 1.3 B |
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| Property Plant Equipment | 701 M | 1.1 B |
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| Depreciation And Amortization | 150.1 M | 142.9 M |
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| Selling General Administrative | 485.6 M | 917.8 M |
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| Total Current Liabilities | 692.5 M | 875.6 M |
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| Non Current Liabilities Total | 1.3 B | 2.6 B |
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| Short Term Debt | 70.8 M | 104.7 M |
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| Long Term Debt | 1.1 B | 1.9 B |
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| Gross Profit Margin | 0.4 | 0.38 |
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Peloton Interactive 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 Peloton Interactive's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Peloton Interactive in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Peloton Interactive's degree of accounting gimmicks and manipulations.
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About Peloton Interactive 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 |
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Peloton Interactive 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 Peloton Interactive. 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.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 34.6M | 71.4M | 83.6M | 97.2M | 111.8M | 117.4M | |
| Total Revenue | 1.8B | 4.0B | 3.6B | 2.8B | 3.2B | 2.2B | |
| Total Assets | 3.0B | 4.5B | 4.0B | 2.8B | 3.2B | 2.5B | |
| Total Current Assets | 2.2B | 2.8B | 2.6B | 1.6B | 1.9B | 1.6B | |
| Net Debt | (480.4M) | 377.3M | 1.1B | 1.5B | 1.8B | 1.9B | |
| Short Term Debt | 46.9M | 61.9M | 93.9M | 91M | 104.7M | 70.8M | |
| Operating Income | (80.9M) | (187.9M) | (1.6B) | (1.2B) | (1.1B) | (1.0B) | |
| Investments | (741.3M) | 223.5M | 517.7M | (69.9M) | (80.4M) | (84.4M) | |
| Gross Profit Margin | 0.46 | 0.36 | 0.19 | 0.33 | 0.38 | 0.4 |
About Peloton Interactive Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Peloton Interactive's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Peloton Interactive using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Peloton Interactive 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.
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Check out Peloton Interactive Piotroski F Score and Peloton Interactive Altman Z Score analysis. To learn how to invest in Peloton Stock, please use our How to Invest in Peloton Interactive guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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When running Peloton Interactive's price analysis, check to measure Peloton Interactive'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 Peloton Interactive is operating at the current time. Most of Peloton Interactive's value examination focuses on studying past and present price action to predict the probability of Peloton Interactive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Peloton Interactive's price. Additionally, you may evaluate how the addition of Peloton Interactive to your portfolios can decrease your overall portfolio volatility.
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Is Peloton Interactive'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 Peloton Interactive. If investors know Peloton 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 Peloton Interactive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.44) | Revenue Per Share 7.656 | Quarterly Revenue Growth (0.06) | Return On Assets (0.12) | Return On Equity (8.47) |
The market value of Peloton Interactive is measured differently than its book value, which is the value of Peloton that is recorded on the company's balance sheet. Investors also form their own opinion of Peloton Interactive's value that differs from its market value or its book value, called intrinsic value, which is Peloton Interactive'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 Peloton Interactive's market value can be influenced by many factors that don't directly affect Peloton Interactive'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 Peloton Interactive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Peloton Interactive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Peloton Interactive'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.