CN Energy Group (CN Energy Group) Beneish M-Score : 14.74 (As of May. 13, 2024)

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What is CN Energy Group 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.

Warning Sign:

Beneish M-Score 14.74 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for CN Energy Group's Beneish M-Score or its related term are showing as below:

CNEY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.59 Med: -0.15 Max: 14.74
Current: 14.74

During the past 6 years, the highest Beneish M-Score of CN Energy Group was 14.74. The lowest was -2.59. And the median was -0.15.

CN Energy Group Beneish M-Score Historical Data

The historical data trend for CN Energy Group'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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CN Energy Group Beneish M-Score Chart

CN Energy Group Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

Get a 7-Day Free Trial

-1.02

0.73

-2.59

14.74

CN Energy Group Semi-Annual Data
	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial						0.73	-	-2.59	-	14.74

Competitive Comparison of CN Energy Group's Beneish M-Score

For the Specialty Chemicals subindustry, CN Energy Group'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.

CN Energy Group's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, CN Energy Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CN Energy Group's Beneish M-Score falls into.

CN Energy Group 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 CN Energy Group 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 * 1.0671

0.528 * 6.6473

0.404 * 33.0211

0.892 * 1.4401

0.115 * 0.551

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.8687

4.679 * 0.193526

0.327 * 0.5493

14.74

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $29.01 Mil.
Revenue was $57.90 Mil.
Gross Profit was $0.79 Mil.
Total Current Assets was $72.45 Mil.
Total Assets was $126.20 Mil.
Property, Plant and Equipment(Net PPE) was $18.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.76 Mil.
Selling, General, & Admin. Expense(SGA) was $5.78 Mil.
Total Current Liabilities was $22.53 Mil.
Long-Term Debt & Capital Lease Obligation was $0.03 Mil.
Net Income was $-5.63 Mil.
Gross Profit was $0.12 Mil.
Cash Flow from Operations was $-30.17 Mil.

Total Receivables was $18.88 Mil.
Revenue was $40.21 Mil.
Gross Profit was $3.64 Mil.
Total Current Assets was $74.22 Mil.
Total Assets was $94.94 Mil.
Property, Plant and Equipment(Net PPE) was $19.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.54 Mil.
Selling, General, & Admin. Expense(SGA) was $2.15 Mil.
Total Current Liabilities was $30.46 Mil.
Long-Term Debt & Capital Lease Obligation was $0.44 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)
	=	(29.013 / 57.899)	/	(18.881 / 40.206)
	=	0.501097	/	0.469607
	=	1.0671

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)
	=	(3.642 / 40.206)	/	(0.789 / 57.899)
	=	0.090583	/	0.013627
	=	6.6473

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 - (72.449 + 18.459) / 126.195)	/	(1 - (74.217 + 19.921) / 94.942)
	=	0.279623	/	0.008468
	=	33.0211

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
	=	57.899	/	40.206
	=	1.4401

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))
	=	(1.538 / (1.538 + 19.921))	/	(2.76 / (2.76 + 18.459))
	=	0.071672	/	0.130072
	=	0.551

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)
	=	(5.783 / 57.899)	/	(2.149 / 40.206)
	=	0.099881	/	0.05345
	=	1.8687

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)
	=	((0.034 + 22.525) / 126.195)	/	((0.437 + 30.462) / 94.942)
	=	0.178763	/	0.325451
	=	0.5493

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
	=	(-5.626 - 0.117	-	-30.165)	/	126.195
	=	0.193526

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.

CN Energy Group has a M-score of 14.74 signals that the company is likely to be a manipulator.

CN Energy Group Beneish M-Score Related Terms

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CN Energy Group (CN Energy Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » CN Energy Group Inc (NAS:CNEY) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

No. 268 Shiniu Road, Building 2-B, Room 206, Liandu District, Zhejiang Province, Lishui, CHN

Website

https://www.ir.cneny.com

CN Energy Group Inc along with its subsidiaries is a manufacturer and supplier of wood-based activated carbon that is used in pharmaceutical manufacturing, industrial manufacturing, water purification, environmental protection, and food and beverage production and a producer of biomass electricity generated in the process of producing activated carbon. The firm generates a majority of its revenue from Activated carbon.