HORNBACH Baumarkt AG (HAM:HBM) Beneish M-Score : 4.01 (As of Jun. 01, 2024)

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What is HORNBACH Baumarkt AG 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 4.01 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for HORNBACH Baumarkt AG's Beneish M-Score or its related term are showing as below:

HAM:HBM' s Beneish M-Score Range Over the Past 10 Years
Min: -12.13 Med: -2.45 Max: 4.01
Current: 4.01

During the past 13 years, the highest Beneish M-Score of HORNBACH Baumarkt AG was 4.01. The lowest was -12.13. And the median was -2.45.

HORNBACH Baumarkt AG Beneish M-Score Historical Data

The historical data trend for HORNBACH Baumarkt AG'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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HORNBACH Baumarkt AG Beneish M-Score Chart

HORNBACH Baumarkt AG Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-2.89

-12.13

-3.19

4.01

HORNBACH Baumarkt AG Quarterly Data
	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	Feb23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-2.42	-2.59	-3.19	4.01	-

Competitive Comparison of HORNBACH Baumarkt AG's Beneish M-Score

For the Home Improvement Retail subindustry, HORNBACH Baumarkt AG'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.

HORNBACH Baumarkt AG's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, HORNBACH Baumarkt AG's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where HORNBACH Baumarkt AG's Beneish M-Score falls into.

HORNBACH Baumarkt AG 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 HORNBACH Baumarkt AG 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 * 8.0555

0.528 * 1.0074

0.404 * 1.7656

0.892 * 0.7538

0.115 * 1.2744

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0583

4.679 * -0.004963

0.327 * 1.2856

4.01

This Year (Feb23) TTM:

Last Year (May21) TTM:

Total Receivables was €118 Mil.
Revenue was 0 + 1111.086 + 1299.7 + 1509.4 = €3,920 Mil.
Gross Profit was 0 + 395.626 + 454.9 + 543.3 = €1,394 Mil.
Total Current Assets was €1,828 Mil.
Total Assets was €4,468 Mil.
Property, Plant and Equipment(Net PPE) was €2,552 Mil.
Depreciation, Depletion and Amortization(DDA) was €205 Mil.
Selling, General, & Admin. Expense(SGA) was €187 Mil.
Total Current Liabilities was €1,238 Mil.
Long-Term Debt & Capital Lease Obligation was €1,627 Mil.
Net Income was 0 + -45.756 + 25.5 + 104.4 = €84 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 0 + -70.181 + 30.9 + 145.6 = €106 Mil.

Total Receivables was €20 Mil.
Revenue was 1575.8 + 892.744 + 1275.2 + 1456.8 = €5,201 Mil.
Gross Profit was 570.1 + 316.73 + 451.2 + 524.7 = €1,863 Mil.
Total Current Assets was €1,538 Mil.
Total Assets was €3,940 Mil.
Property, Plant and Equipment(Net PPE) was €2,358 Mil.
Depreciation, Depletion and Amortization(DDA) was €247 Mil.
Selling, General, & Admin. Expense(SGA) was €234 Mil.
Total Current Liabilities was €835 Mil.
Long-Term Debt & Capital Lease Obligation was €1,131 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)
	=	(118.422 / 3920.186)	/	(19.5 / 5200.544)
	=	0.030208	/	0.00375
	=	8.0555

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)
	=	(1862.73 / 5200.544)	/	(1393.826 / 3920.186)
	=	0.35818	/	0.355551
	=	1.0074

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 - (1828.072 + 2552.079) / 4468.452)	/	(1 - (1538.3 + 2358) / 3940.4)
	=	0.019761	/	0.011192
	=	1.7656

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
	=	3920.186	/	5200.544
	=	0.7538

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))
	=	(247.312 / (247.312 + 2358))	/	(205.397 / (205.397 + 2552.079))
	=	0.094926	/	0.074487
	=	1.2744

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)
	=	(186.511 / 3920.186)	/	(233.808 / 5200.544)
	=	0.047577	/	0.044958
	=	1.0583

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)
	=	((1627.358 + 1238.463) / 4468.452)	/	((1130.9 + 834.9) / 3940.4)
	=	0.641345	/	0.498883
	=	1.2856

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
	=	(84.144 - 0	-	106.319)	/	4468.452
	=	-0.004963

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.

HORNBACH Baumarkt AG has a M-score of 4.01 signals that the company is likely to be a manipulator.

HORNBACH Baumarkt AG Beneish M-Score Related Terms

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HORNBACH Baumarkt AG (HAM:HBM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » HORNBACH Baumarkt AG (HAM:HBM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

0ENN:UK

Address

Hornbachstrasse, Pfalz, Bornheim bei Landau, RP, DEU, 76878

Website

https://www.hornbach-holding.de

HORNBACH Baumarkt AG is a German company that operates megastores and offers do-it-yourself (DIY), home improvement, and gardening products. The company also operates in other European countries, including Austria, the Netherlands, the Czech Republic, Switzerland, and Romania. The company conducts its activities through its Retail and Real estate segments. The Retail segment operates DIY megastores and garden centers, while the Real estate segment focuses on retail properties. The stores' product range includes hardware/electrical, paint/wallpaper/flooring, construction materials, sanitary tiles, and garden products. The majority of the company's sales are derived from its retail segment.