Vertex Stock Beneish M Score

VERX Stock  USD 31.76  1.10  3.59%   
This module uses fundamental data of Vertex to approximate the value of its Beneish M Score. Vertex 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 Vertex Piotroski F Score and Vertex Altman Z Score analysis.
For more information on how to buy Vertex Stock please use our How to Invest in Vertex guide.
  
At this time, Vertex's Short Term Debt is fairly stable compared to the past year. Long Term Debt To Capitalization is likely to rise to 0.16 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 50.7 M in 2024. At this time, Vertex's Net Income Per E B T is fairly stable compared to the past year. Operating Cash Flow Sales Ratio is likely to rise to 0.23 in 2024, whereas Short Term Coverage Ratios is likely to drop 11.07 in 2024.
At this time, it appears that Vertex is an unlikely manipulator. The earnings manipulation may begin if Vertex'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 Vertex 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 Vertex'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.
-3.32
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.87

Focus
Asset Quality

0.95

Focus
Expense Coverage

1.04

Focus
Gross Margin Strengs

1.17

Focus
Accruals Factor

1.04

Focus
Depreciation Resistance

1.07

Focus
Net Sales Growth

0.79

Focus
Financial Leverage Condition

1.11

Focus

Vertex 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 Vertex'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 Receivables97.4 M141.8 M
Way Down
Slightly volatile
Total Revenue450.7 M572.4 M
Significantly Down
Slightly volatile
Total Assets583.7 M759.9 M
Way Down
Slightly volatile
Total Current Assets256.7 M262.6 M
Fairly Down
Slightly volatile
Non Current Assets Total327 M497.3 M
Way Down
Slightly volatile
Property Plant Equipment86.9 M133.1 M
Way Down
Slightly volatile
Depreciation And Amortization50.6 M86.8 M
Way Down
Slightly volatile
Selling General Administrative119.8 M145.9 M
Significantly Down
Slightly volatile
Total Current Liabilities381 M440.8 M
Fairly Down
Slightly volatile
Non Current Liabilities Total71.8 M66.2 M
Significantly Up
Slightly volatile
Short Term Debt9.8 M6.3 M
Way Up
Pretty Stable
Long Term Debt31.2 M44.1 M
Way Down
Slightly volatile
Total Cash From Operating Activities63.3 M73.3 M
Fairly Down
Slightly volatile
Short Term Investments12.2 M9.5 M
Significantly Up
Slightly volatile
Gross Profit Margin0.670.5733
Fairly Up
Slightly volatile

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

About Vertex 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

50.62 Million

At this time, Vertex's Depreciation And Amortization is fairly stable compared to the past year.

Vertex 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 Vertex. 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 Receivables70.4M77.2M76.9M102.9M141.8M97.4M
Total Revenue321.5M374.7M425.5M491.6M572.4M450.7M
Total Assets264.6M554.9M670.2M719.2M759.9M583.7M
Total Current Assets165.6M402.7M195.7M241.2M262.6M256.7M
Net Debt(24.4M)(301.9M)(44.7M)(18.3M)(22.2M)(23.3M)
Short Term Debt50.8M882K4.2M6.4M6.3M9.8M
Operating Income31.9M(104.8M)(2.9M)(8.1M)(7.4M)(7.8M)
Investments(37.6M)(44.4M)(296.5M)(11.2M)(80.9M)(84.9M)
Gross Profit Margin0.660.560.620.610.570.67

About Vertex Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vertex's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vertex using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vertex 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.
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania. Vertex Inc operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1300 people.

Vertex Investors Sentiment

The influence of Vertex'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 Vertex. 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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to Vertex's public news can be used to forecast risks associated with an investment in Vertex. The trend in average sentiment can be used to explain how an investor holding Vertex can time the market purely based on public headlines and social activities around Vertex. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Vertex's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Vertex's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Vertex's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Vertex.
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 Vertex 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, Vertex's short interest history, or implied volatility extrapolated from Vertex options trading.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Vertex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vertex'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 Vertex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vertex Stock:
Check out Vertex Piotroski F Score and Vertex Altman Z Score analysis.
For more information on how to buy Vertex Stock please use our How to Invest in Vertex guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Vertex's price analysis, check to measure Vertex'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 Vertex is operating at the current time. Most of Vertex's value examination focuses on studying past and present price action to predict the probability of Vertex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vertex's price. Additionally, you may evaluate how the addition of Vertex to your portfolios can decrease your overall portfolio volatility.
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Is Vertex'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 Vertex. If investors know Vertex 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 Vertex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.96)
Earnings Share
(0.09)
Revenue Per Share
3.769
Quarterly Revenue Growth
0.181
Return On Assets
(0.01)
The market value of Vertex is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex's value that differs from its market value or its book value, called intrinsic value, which is Vertex'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 Vertex's market value can be influenced by many factors that don't directly affect Vertex'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 Vertex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex'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.