Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) Beneish M-Score : -2.23 (As of May. 04, 2024)

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What is Alpha Dhabi Holding PJSC 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 -2.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Alpha Dhabi Holding PJSC's Beneish M-Score or its related term are showing as below:

ADX:ALPHADHABI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.23 Med: -1.71 Max: -0.35
Current: -2.23

During the past 3 years, the highest Beneish M-Score of Alpha Dhabi Holding PJSC was -0.35. The lowest was -2.23. And the median was -1.71.

Alpha Dhabi Holding PJSC Beneish M-Score Historical Data

The historical data trend for Alpha Dhabi Holding PJSC'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.

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Alpha Dhabi Holding PJSC Beneish M-Score Chart

Alpha Dhabi Holding PJSC Annual Data

Trend

Dec20

Dec21

Dec22

Beneish M-Score

-1.71

Alpha Dhabi Holding PJSC Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial									-1.17	-1.71	-1.70	-2.01	-2.23

Competitive Comparison of Alpha Dhabi Holding PJSC's Beneish M-Score

For the Conglomerates subindustry, Alpha Dhabi Holding PJSC'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.

Alpha Dhabi Holding PJSC's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alpha Dhabi Holding PJSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Alpha Dhabi Holding PJSC's Beneish M-Score falls into.

Alpha Dhabi Holding PJSC 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 Alpha Dhabi Holding PJSC 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 * 0.797

0.528 * 1.2901

0.404 * 1.0555

0.892 * 1.3501

0.115 * 0.7489

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1315

4.679 * -0.005239

0.327 * 0.9189

-2.23

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was د.إ25,388 Mil.
Revenue was 10271.043 + 9365.664 + 12775.235 + 13420.045 = د.إ45,832 Mil.
Gross Profit was 2040.116 + 1998.628 + 2622.347 + 2677.025 = د.إ9,338 Mil.
Total Current Assets was د.إ68,458 Mil.
Total Assets was د.إ133,550 Mil.
Property, Plant and Equipment(Net PPE) was د.إ15,166 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ2,488 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ3,098 Mil.
Total Current Liabilities was د.إ32,997 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ20,110 Mil.
Net Income was 877.667 + 2302.048 + 6579.472 + 544.119 = د.إ10,303 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 3758.1 + 2499.603 + -2823.217 + 7568.495 = د.إ11,003 Mil.

Total Receivables was د.إ23,595 Mil.
Revenue was 9501.148 + 8961.76 + 8167.036 + 7316.896 = د.إ33,947 Mil.
Gross Profit was 2066.884 + 2300.839 + 2692.961 + 1862.387 = د.إ8,923 Mil.
Total Current Assets was د.إ57,031 Mil.
Total Assets was د.إ109,098 Mil.
Property, Plant and Equipment(Net PPE) was د.إ13,428 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ1,585 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ2,028 Mil.
Total Current Liabilities was د.إ30,228 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ16,981 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)
	=	(25387.918 / 45831.987)	/	(23594.686 / 33946.84)
	=	0.553934	/	0.695048
	=	0.797

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)
	=	(8923.071 / 33946.84)	/	(9338.116 / 45831.987)
	=	0.262854	/	0.203747
	=	1.2901

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 - (68457.715 + 15166.241) / 133550.065)	/	(1 - (57030.577 + 13427.954) / 109097.908)
	=	0.373838	/	0.354172
	=	1.0555

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
	=	45831.987	/	33946.84
	=	1.3501

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))
	=	(1584.607 / (1584.607 + 13427.954))	/	(2488.265 / (2488.265 + 15166.241))
	=	0.105552	/	0.140942
	=	0.7489

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)
	=	(3097.832 / 45831.987)	/	(2027.816 / 33946.84)
	=	0.067591	/	0.059735
	=	1.1315

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)
	=	((20109.821 + 32997.02) / 133550.065)	/	((16981.372 + 30228.41) / 109097.908)
	=	0.397655	/	0.432729
	=	0.9189

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
	=	(10303.306 - 0	-	11002.981)	/	133550.065
	=	-0.005239

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.

Alpha Dhabi Holding PJSC has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.

Alpha Dhabi Holding PJSC Beneish M-Score Related Terms

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Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

108, Al Muntazah Street, Office 1003, Level 10, TwoFour54 Building 6, P.O. Box 111059, Adjacent Park Rotana Hotel, Abu Dhabi, ARE

Website

https://www.alphadhabi.com

Alpha Dhabi Holding PJSC is an investment holding company in the UAE. It invests in five major verticals namely industrials, which relates to the providing of dredging and associated land reclamation works; healthcare, which includes hospital and medical laboratory management services and laboratory diagnostic services; Construction segment provides contracting services relating to saleable and residential buildings, infrastructure development and civil construction works; Real estate, which includes rental income from properties and income from investment in real estate companies or sale of real estate; and Services, which comprise management services, hospitality income as well as a variety of smaller ancillary activities. It generates the majority of its revenue from the UAE.

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