Penn National Gaming Stock Beneish M Score

PENN Stock  USD 17.42  0.26  1.52%   
This module uses fundamental data of Penn National to approximate the value of its Beneish M Score. Penn National 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 Penn National Piotroski F Score and Penn National Altman Z Score analysis.
  
At this time, Penn National's Interest Debt Per Share is very stable compared to the past year. As of the 10th of June 2024, Long Term Debt To Capitalization is likely to grow to 0.54, while Long Term Debt is likely to drop about 2 B. At this time, Penn National's Payables Turnover is very stable compared to the past year. As of the 10th of June 2024, Cash Per Share is likely to grow to 7.40, while Price To Sales Ratio is likely to drop 0.39.
At this time, it appears that Penn National Gaming is an unlikely manipulator. The earnings manipulation may begin if Penn National'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 Penn National 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 Penn National'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.
-2.49
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.25

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.09

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.56

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.41

Focus

Penn National 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 Penn National'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 Receivables334.9 M319 M
Sufficiently Up
Slightly volatile
Total Revenue6.7 B6.4 B
Sufficiently Up
Slightly volatile
Total Assets16.9 B16.1 B
Sufficiently Up
Slightly volatile
Total Current Assets1.7 B1.7 B
Sufficiently Up
Slightly volatile
Non Current Assets Total15.1 B14.4 B
Sufficiently Up
Slightly volatile
Property Plant Equipment2.8 B5.2 B
Way Down
Slightly volatile
Depreciation And Amortization456.9 M435.1 M
Sufficiently Up
Slightly volatile
Selling General Administrative1.6 B1.6 B
Sufficiently Up
Slightly volatile
Total Current Liabilities1.6 B1.5 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total11.9 B11.4 B
Sufficiently Up
Slightly volatile
Net Debt3.1 B1.7 B
Way Up
Slightly volatile
Short Term Debt453.1 M431.5 M
Sufficiently Up
Slightly volatile
Long Term DebtB2.7 B
Way Down
Slightly volatile
Total Cash From Operating Activities333 M455.9 M
Way Down
Slightly volatile
Long Term Investments168.1 M84.9 M
Way Up
Pretty Stable
Gross Profit Margin0.330.3028
Significantly Up
Very volatile

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

About Penn National 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

456.86 Million

At this time, Penn National's Depreciation And Amortization is very stable compared to the past year.

Penn National 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 Penn National. 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 Receivables88.7M96.4M195M246.4M319M335.0M
Total Revenue5.3B3.6B5.9B6.4B6.4B6.7B
Total Assets14.2B14.7B16.9B17.5B16.1B16.9B
Total Current Assets642.8M2.1B2.2B2.0B1.7B1.7B
Net Debt10.9B9.3B9.7B11.3B1.7B3.1B
Short Term Debt234M251.7M281.4M313.9M431.5M453.1M
Long Term Debt2.3B2.2B2.6B2.7B2.7B2.0B
Operating Income793.4M333.6M1.1B974M363.6M264.9M
Investments956M(135M)(27.4M)(258.6M)(664.6M)(631.4M)

Penn National ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Penn National's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Penn National's managers, analysts, and investors.
Environmental
Governance
Social

About Penn National Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Penn National Gaming's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Penn National using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Penn National Gaming 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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Additional Information and Resources on Investing in Penn Stock

When determining whether Penn National Gaming offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Penn National'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 Penn National Gaming Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Penn National Gaming Stock:
Check out Penn National Piotroski F Score and Penn National Altman Z Score analysis.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Hotels, Restaurants & Leisure space 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 Penn National. If investors know Penn 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 Penn National 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
2.089
Earnings Share
(7.33)
Revenue Per Share
41.493
Quarterly Revenue Growth
(0.04)
Return On Assets
0.0068
The market value of Penn National Gaming is measured differently than its book value, which is the value of Penn that is recorded on the company's balance sheet. Investors also form their own opinion of Penn National's value that differs from its market value or its book value, called intrinsic value, which is Penn National'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 Penn National's market value can be influenced by many factors that don't directly affect Penn National'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 Penn National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Penn National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penn National'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.