Four Seasons Education Stock Beneish M Score

FEDU Stock  USD 7.98  0.40  5.28%   
This module uses fundamental data of Four Seasons to approximate the value of its Beneish M Score. Four Seasons 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 Four Seasons Piotroski F Score and Four Seasons Altman Z Score analysis.
  
At this time, Four Seasons' Total Debt is comparatively stable as compared to the past year. Debt Current is likely to gain to about 2.3 M in 2024, whereas Issuance Repayment of Debt Securities is likely to drop (554.2 K) in 2024. At this time, Four Seasons' Asset Turnover is comparatively stable as compared to the past year. Current Ratio is likely to gain to 1.69 in 2024, whereas EBITDA Margin is likely to drop (0.28) in 2024.
At this time, it appears that Four Seasons Education is a possible manipulator. The earnings manipulation may begin if Four Seasons' 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 Four Seasons 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 Four Seasons' 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.
-2.11
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.05

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.01

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.03

Focus
Financial Leverage Condition

1.0

Focus

Four Seasons 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 Four Seasons' 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
Selling General and Administrative Expense33.4 M32.6 M
Fairly Up
Pretty Stable
Revenues96.3 M93.8 M
Fairly Up
Pretty Stable
Trade and Non Trade Receivables43.5 M40.3 M
Significantly Up
Slightly volatile
Property Plant and Equipment Net2.4 M2.3 M
Fairly Up
Slightly volatile
Operating Income6.8 M6.3 M
Significantly Up
Slightly volatile
Net Cash Flow from OperationsMM
Fairly Up
Slightly volatile
Liabilities Non Current42 M39.6 M
Notably Up
Slightly volatile
Current Liabilities53.7 M52.3 M
Fairly Up
Pretty Stable
Total Liabilities94.3 M91.9 M
Fairly Up
Very volatile
Investments Non Current119.1 K116 K
Fairly Up
Slightly volatile
Investments Current297.2 M363.6 M
Significantly Down
Slightly volatile
Investments119.1 K116 K
Fairly Up
Very volatile
Gross Margin0.420.414
Fairly Up
Slightly volatile
Depreciation Amortization and Accretion543.9 K530 K
Fairly Up
Slightly volatile
Debt Non Current1.1 M1.1 M
Fairly Up
Slightly volatile
Debt Current2.3 M2.3 M
Fairly Up
Slightly volatile
Total Debt3.4 M3.4 M
Fairly Up
Slightly volatile
Assets Non Current5.2 M5.1 M
Fairly Up
Pretty Stable
Current Assets88.1 M85.9 M
Fairly Up
Pretty Stable
Total Assets93.3 M91 M
Fairly Up
Pretty Stable

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

About Four Seasons 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

543,947

At this time, Four Seasons' Depreciation Amortization and Accretion is comparatively stable as compared to the past year.

Four Seasons 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 Four Seasons. 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)
Revenues389.0M280.3M250.2M34.2M93.8M96.3M
Total Assets1.0B967.2M602.5M601.0M91.0M93.3M
Current Assets616.2M516.8M526.0M511.2M85.9M88.1M
Assets Non Current421.4M450.4M76.6M89.9M5.1M5.2M
Total Liabilities362.7M320.8M100.0M89.2M91.9M94.3M
Current Liabilities213.0M227.0M93.6M87.4M52.3M53.7M
Operating Income(131.0M)(36.5M)(66.2M)(35.7M)6.3M6.8M
Investments335.2M338.5M270.3M358.6M116K119.1K
Investments Current191.8M127.6M246.0M316.2M363.6M297.2M
Gross Margin0.640.490.480.40.420.41

About Four Seasons Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Four Seasons Education's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Four Seasons using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Four Seasons Education 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.
Four Seasons Education Inc. provides after-school education services for kindergarten, elementary, and middle school students in the Peoples Republic of China. The company was founded in 2007 and is headquartered in Shanghai, the Peoples Republic of China. Four Seasons operates under Education Training Services classification in the United States and is traded on New York Stock Exchange. It employs 286 people.
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 Four Seasons 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, Four Seasons' short interest history, or implied volatility extrapolated from Four Seasons options trading.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Four Seasons Education is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Four Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Four Seasons Education Stock. Highlighted below are key reports to facilitate an investment decision about Four Seasons Education Stock:
Check out Four Seasons Piotroski F Score and Four Seasons Altman Z Score analysis.
Note that the Four Seasons Education information on this page should be used as a complementary analysis to other Four Seasons' 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 the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Complementary Tools for Four Stock analysis

When running Four Seasons' price analysis, check to measure Four Seasons' 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 Four Seasons is operating at the current time. Most of Four Seasons' value examination focuses on studying past and present price action to predict the probability of Four Seasons' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Four Seasons' price. Additionally, you may evaluate how the addition of Four Seasons to your portfolios can decrease your overall portfolio volatility.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Is Four Seasons' 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 Four Seasons. If investors know Four 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 Four Seasons 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
(0.83)
Earnings Share
(0.18)
Revenue Per Share
38.77
Quarterly Revenue Growth
3.475
Return On Assets
(0.01)
The market value of Four Seasons Education is measured differently than its book value, which is the value of Four that is recorded on the company's balance sheet. Investors also form their own opinion of Four Seasons' value that differs from its market value or its book value, called intrinsic value, which is Four Seasons' 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 Four Seasons' market value can be influenced by many factors that don't directly affect Four Seasons' 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 Four Seasons' value and its price as these two are different measures arrived at by different means. Investors typically determine if Four Seasons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Four Seasons' 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.