ICTS International NV (ICTS International NV) Beneish M-Score : -1.57 (As of May. 12, 2024)

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What is ICTS International NV 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 -1.57 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for ICTS International NV's Beneish M-Score or its related term are showing as below:

ICTSF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48 Med: -2.55 Max: -1.57
Current: -1.57

During the past 13 years, the highest Beneish M-Score of ICTS International NV was -1.57. The lowest was -3.48. And the median was -2.55.

ICTS International NV Beneish M-Score Historical Data

The historical data trend for ICTS International NV'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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ICTS International NV Beneish M-Score Chart

ICTS International NV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-3.48

-1.93

-3.11

-2.94

-1.57

ICTS International NV Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.94	-	-1.57	-

Competitive Comparison of ICTS International NV's Beneish M-Score

For the Security & Protection Services subindustry, ICTS International NV'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.

ICTS International NV's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, ICTS International NV's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ICTS International NV's Beneish M-Score falls into.

ICTS International NV 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 ICTS International NV 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 * 0.8646

0.528 * 1.8054

0.404 * 2.879

0.892 * 1.0001

0.115 * 0.8498

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0572

4.679 * -0.015636

0.327 * 1.1429

-1.57

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was $56.5 Mil.
Revenue was $325.0 Mil.
Gross Profit was $63.8 Mil.
Total Current Assets was $155.5 Mil.
Total Assets was $184.6 Mil.
Property, Plant and Equipment(Net PPE) was $16.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.5 Mil.
Selling, General, & Admin. Expense(SGA) was $53.8 Mil.
Total Current Liabilities was $68.3 Mil.
Long-Term Debt & Capital Lease Obligation was $7.5 Mil.
Net Income was $-4.7 Mil.
Gross Profit was $0.3 Mil.
Cash Flow from Operations was $-2.1 Mil.

Total Receivables was $65.4 Mil.
Revenue was $324.9 Mil.
Gross Profit was $115.2 Mil.
Total Current Assets was $174.6 Mil.
Total Assets was $195.9 Mil.
Property, Plant and Equipment(Net PPE) was $16.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General, & Admin. Expense(SGA) was $50.9 Mil.
Total Current Liabilities was $60.9 Mil.
Long-Term Debt & Capital Lease Obligation was $9.5 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)
	=	(56.548 / 324.977)	/	(65.398 / 324.934)
	=	0.174006	/	0.201265
	=	0.8646

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)
	=	(115.163 / 324.934)	/	(63.796 / 324.977)
	=	0.35442	/	0.196309
	=	1.8054

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 - (155.483 + 16.477) / 184.633)	/	(1 - (174.562 + 16.648) / 195.88)
	=	0.068639	/	0.023841
	=	2.879

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
	=	324.977	/	324.934
	=	1.0001

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))
	=	(2.061 / (2.061 + 16.648))	/	(2.454 / (2.454 + 16.477))
	=	0.110161	/	0.129629
	=	0.8498

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)
	=	(53.799 / 324.977)	/	(50.882 / 324.934)
	=	0.165547	/	0.156592
	=	1.0572

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)
	=	((7.479 + 68.326) / 184.633)	/	((9.49 + 60.877) / 195.88)
	=	0.410571	/	0.359235
	=	1.1429

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
	=	(-4.725 - 0.273	-	-2.111)	/	184.633
	=	-0.015636

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.

ICTS International NV has a M-score of -1.57 signals that the company is likely to be a manipulator.

ICTS International NV Beneish M-Score Related Terms

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ICTS International NV (ICTS International NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » ICTS International NV (OTCPK:ICTSF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Walaardt Sacrestraat 425-5, 1117 BM Schiphol-Oost, Amsterdam, NH, NLD, 1117

Website

https://www.ictsintl.com

ICTS International NV provides aviation security and other aviation services. Business activity of the firm is operated through Corporate, Airport security and other aviation services, and Authentication Technology segments. The Airport security and other aviation segment provide security and other services to airlines and airport authorities, predominantly in Europe and the U.S. The Authentication technology segment is involved in the development and sale of authentication security software to financial and other institutions. The geographical presence of the company in Germany, United States, Netherlands, Spain and Other countries out of its majority of the revenue generated from Germany.

Executives

Rom Shaked	other: Managing Director	79 EERSTE OOSTERPARKSTRAAT, AMSTERDAM P7 1091GW
Igal Tabori	10 percent owner	19 ALUMIM STREET, TEL AVIV L3 69690
Philip Getter	director, 10 percent owner	PRIME CHARTER LTD, 810 SEVENTH AVE, NEW YORK NY 10019
Spencer Corp	10 percent owner	AM HANSAKAI 14, ROSTOCK 2M 18147
Menachem Atzmon	director	ONE ROCKEFELLER PLAZA, SUITE 2412, NEW YORK NY 10020
David W Sass	director, 10 percent owner	260 MADISON AVE 18TH FLR, NEW YORK NY 10016
Gail Lieberman	director	175 EAST 79TH STREET, APT. 4D, NEW YORK NY 10075
Gordon Hausmann	director	C/O CH. HAUSMANN & CO., 5 DE WALDEN COURT 85 NEW CAVENDISH STREE, LONDON X0 W1W6XD
Ron Atzmon	director	18A YAAKOV STREET, TEL AVIV L3 6901552
Gil Atzmon	director	2 HACHERMESH STREET, SAVYON L3 0000000000
Alon Raich	director	C/O ICTS INTERNATIONAL, N.V., BIESBOSCH 225, 1181 JC AMSTELVEEN P7 0000000000
Elie Housman	director	600 WEST END AVENUE 12-CD, NEW YORK NY 10022
Amos Megides	10 percent owner	21 MOROD HANACHAL STREET, HOFIT L3 40300
Ran Langer	officer: Managing Director	ONE ROCKEFELLER PLAZA, SUITE 2412, NEW YORK NY 10020
Dan Avraham	officer: Managing Director	ONE ROCKEFELLER PLAZA, SUITE 2412, NEW YORK NY 10020