Msg Life AG (HAM:MSGL) Beneish M-Score : -5.23 (As of May. 10, 2024)

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What is Msg Life 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.

Good Sign:

Beneish M-Score -5.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HAM:MSGL' s Beneish M-Score Range Over the Past 10 Years
Min: -5.23 Med: -2.71 Max: -1.48
Current: -5.23

During the past 13 years, the highest Beneish M-Score of Msg Life AG was -1.48. The lowest was -5.23. And the median was -2.71.

Msg Life AG Beneish M-Score Historical Data

The historical data trend for Msg Life 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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Msg Life AG Beneish M-Score Chart

Msg Life AG Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-2.95

-1.48

-3.20

-2.36

-5.23

Msg Life AG Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Beneish M-Score	Get a 7-Day Free Trial													-2.95	-1.48	-3.20	-2.36	-5.23

Competitive Comparison of Msg Life AG's Beneish M-Score

For the Software - Application subindustry, Msg Life 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.

Msg Life AG's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Msg Life AG's Beneish M-Score distribution charts can be found below:

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

Msg Life 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 Msg Life 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 * 1.3691

0.528 * 0.9347

0.404 * -8.3681

0.892 * 0.9437

0.115 * 3.5285

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3324

4.679 * 0.101634

0.327 * 0.7812

-5.23

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was €54.0 Mil.
Revenue was €182.9 Mil.
Gross Profit was €142.1 Mil.
Total Current Assets was €101.6 Mil.
Total Assets was €111.3 Mil.
Property, Plant and Equipment(Net PPE) was €19.4 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.5 Mil.
Selling, General, & Admin. Expense(SGA) was €4.6 Mil.
Total Current Liabilities was €11.8 Mil.
Long-Term Debt & Capital Lease Obligation was €0.0 Mil.
Net Income was €9.1 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €-2.2 Mil.

Total Receivables was €41.8 Mil.
Revenue was €193.8 Mil.
Gross Profit was €140.8 Mil.
Total Current Assets was €94.4 Mil.
Total Assets was €99.5 Mil.
Property, Plant and Equipment(Net PPE) was €4.1 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.8 Mil.
Selling, General, & Admin. Expense(SGA) was €3.7 Mil.
Total Current Liabilities was €13.5 Mil.
Long-Term Debt & Capital Lease Obligation was €0.0 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)
	=	(54.009 / 182.905)	/	(41.799 / 193.808)
	=	0.295284	/	0.215672
	=	1.3691

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)
	=	(140.784 / 193.808)	/	(142.146 / 182.905)
	=	0.72641	/	0.777158
	=	0.9347

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 - (101.575 + 19.366) / 111.291)	/	(1 - (94.38 + 4.088) / 99.499)
	=	-0.08671	/	0.010362
	=	-8.3681

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
	=	182.905	/	193.808
	=	0.9437

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))
	=	(2.809 / (2.809 + 4.088))	/	(2.527 / (2.527 + 19.366))
	=	0.407279	/	0.115425
	=	3.5285

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)
	=	(4.635 / 182.905)	/	(3.686 / 193.808)
	=	0.025341	/	0.019019
	=	1.3324

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 + 11.823) / 111.291)	/	((0 + 13.531) / 99.499)
	=	0.106235	/	0.135991
	=	0.7812

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
	=	(9.14 - 0	-	-2.171)	/	111.291
	=	0.101634

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.

Msg Life AG has a M-score of -5.23 suggests that the company is unlikely to be a manipulator.

Msg Life AG Beneish M-Score Related Terms

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Msg Life AG (HAM:MSGL) Business Description

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Address

Humboldtstrasse 35, Leinfelden-Echterdingen, BW, DEU, 70771

Website

https://www.msg-life.com

Msg Life AG is a Germany-based company. It is a consultant and software company for the insurance and retirement savings market. It is a provider of software, advice, and cloud solutions for life insurance companies and pension fund institutions in Europe and, in particular, health insurance companies in the United States. The company's products and services include msg. Life Factory, msg.Insurance Suite, msg.Migration System, msg.Health Factory, msg.The commission, msg.Business Partner, msg.Billing, and others. Geographically, the company exports its services to the United States of America, Austria, Switzerland, Slovenia, Portugal, Poland, and Benelux.

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