Canadian Pacific Kansas City (BSP:CPRL34) Beneish M-Score : -2.26 (As of Jun. 03, 2024)

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What is Canadian Pacific Kansas City Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Canadian Pacific Kansas City's Beneish M-Score or its related term are showing as below:

BSP:CPRL34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11 Med: -2.55 Max: 1.17
Current: -2.26

During the past 13 years, the highest Beneish M-Score of Canadian Pacific Kansas City was 1.17. The lowest was -3.11. And the median was -2.55.

Canadian Pacific Kansas City Beneish M-Score Historical Data

The historical data trend for Canadian Pacific Kansas City's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Canadian Pacific Kansas City Beneish M-Score Chart

Canadian Pacific Kansas City Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.73

-2.65

1.17

-2.14

-2.05

Canadian Pacific Kansas City Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.16	-1.49	-1.15	-2.05	-2.26

Competitive Comparison of Canadian Pacific Kansas City's Beneish M-Score

For the Railroads subindustry, Canadian Pacific Kansas City's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Canadian Pacific Kansas City's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Canadian Pacific Kansas City's Beneish M-Score falls into.

Canadian Pacific Kansas City Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Canadian Pacific Kansas City for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2968

0.528 * 1.0613

0.404 * 0.4728

0.892 * 1.4073

0.115 * 1.1592

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 5.0476

4.679 * 0.081074

0.327 * 1.0956

-2.35

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$7,148 Mil.
Revenue was 12949.835 + 13790.731 + 12187.066 + 11595.397 = R$50,523 Mil.
Gross Profit was 6360.87 + 7275.195 + 6128.207 + 5589.463 = R$25,354 Mil.
Total Current Assets was R$11,574 Mil.
Total Assets was R$300,451 Mil.
Property, Plant and Equipment(Net PPE) was R$193,854 Mil.
Depreciation, Depletion and Amortization(DDA) was R$6,531 Mil.
Selling, General, & Admin. Expense(SGA) was R$-937 Mil.
Total Current Liabilities was R$23,633 Mil.
Long-Term Debt & Capital Lease Obligation was R$69,271 Mil.
Net Income was 2851.171 + 3736.207 + 2846.934 + 4836.895 = R$14,271 Mil.
Non Operating Income was 7.358 + 215.48 + 262.794 + -26193.76 = R$-25,708 Mil.
Cash Flow from Operations was 3734.114 + 4879.348 + 3748.463 + 3258.694 = R$15,621 Mil.

Total Receivables was R$3,917 Mil.
Revenue was 8625.804 + 9506.202 + 9088.54 + 8680.909 = R$35,901 Mil.
Gross Profit was 4472.78 + 5081.3 + 4909.856 + 4655.837 = R$19,120 Mil.
Total Current Assets was R$6,776 Mil.
Total Assets was R$279,794 Mil.
Property, Plant and Equipment(Net PPE) was R$85,858 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,371 Mil.
Selling, General, & Admin. Expense(SGA) was R$-132 Mil.
Total Current Liabilities was R$10,194 Mil.
Long-Term Debt & Capital Lease Obligation was R$68,770 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(7148.161 / 50523.029)	/	(3917.013 / 35901.455)
	=	0.141483	/	0.109105
	=	1.2968

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(19119.773 / 35901.455)	/	(25353.735 / 50523.029)
	=	0.532563	/	0.501825
	=	1.0613

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (11573.915 + 193853.872) / 300450.876)	/	(1 - (6775.786 + 85858.345) / 279794.283)
	=	0.316268	/	0.668921
	=	0.4728

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	50523.029	/	35901.455
	=	1.4073

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(3371.217 / (3371.217 + 85858.345))	/	(6531.06 / (6531.06 + 193853.872))
	=	0.037781	/	0.032593
	=	1.1592

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(-937.208 / 50523.029)	/	(-131.955 / 35901.455)
	=	-0.01855	/	-0.003675
	=	5.0476

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((69270.578 + 23633.448) / 300450.876)	/	((68770.421 + 10194.132) / 279794.283)
	=	0.309215	/	0.282224
	=	1.0956

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(14271.207 - -25708.128	-	15620.619)	/	300450.876
	=	0.081074

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Canadian Pacific Kansas City has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.

Canadian Pacific Kansas City Beneish M-Score Related Terms

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Canadian Pacific Kansas City (BSP:CPRL34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Canadian Pacific Kansas City Ltd (BSP:CPRL34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CP:USA X88:Germany CP:Canada

Address

7550 Ogden Dale Road S.E., Calgary, AB, CAN, T2C 4X9

Website

https://www.cpr.ca

Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.

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