Cashbuild (JSE:CSB) Beneish M-Score : -3.16 (As of May. 21, 2024)

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What is Cashbuild 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 -3.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:CSB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.02 Med: -2.67 Max: -1.66
Current: -3.16

During the past 13 years, the highest Beneish M-Score of Cashbuild was -1.66. The lowest was -4.02. And the median was -2.67.

Cashbuild Beneish M-Score Historical Data

The historical data trend for Cashbuild'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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Cashbuild Beneish M-Score Chart

Cashbuild Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-1.79

-4.02

-2.59

-2.35

-3.16

Cashbuild Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.35	-	-3.16	-

Competitive Comparison of Cashbuild's Beneish M-Score

For the Home Improvement Retail subindustry, Cashbuild'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.

Cashbuild's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

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

Cashbuild 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 Cashbuild 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 * 0.6841

0.528 * 1.0349

0.404 * 0.8729

0.892 * 0.9559

0.115 * 0.9512

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0921

4.679 * -0.058011

0.327 * 1.0708

-3.16

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was R87 Mil.
Revenue was R10,653 Mil.
Gross Profit was R2,705 Mil.
Total Current Assets was R3,415 Mil.
Total Assets was R6,273 Mil.
Property, Plant and Equipment(Net PPE) was R2,384 Mil.
Depreciation, Depletion and Amortization(DDA) was R391 Mil.
Selling, General, & Admin. Expense(SGA) was R2,337 Mil.
Total Current Liabilities was R2,912 Mil.
Long-Term Debt & Capital Lease Obligation was R1,365 Mil.
Net Income was R106 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R470 Mil.

Total Receivables was R133 Mil.
Revenue was R11,145 Mil.
Gross Profit was R2,928 Mil.
Total Current Assets was R3,618 Mil.
Total Assets was R6,637 Mil.
Property, Plant and Equipment(Net PPE) was R2,443 Mil.
Depreciation, Depletion and Amortization(DDA) was R378 Mil.
Selling, General, & Admin. Expense(SGA) was R2,239 Mil.
Total Current Liabilities was R2,827 Mil.
Long-Term Debt & Capital Lease Obligation was R1,398 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)
	=	(86.855 / 10653.193)	/	(132.831 / 11145.107)
	=	0.008153	/	0.011918
	=	0.6841

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)
	=	(2928.43 / 11145.107)	/	(2704.755 / 10653.193)
	=	0.262755	/	0.253891
	=	1.0349

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 - (3414.73 + 2383.569) / 6272.943)	/	(1 - (3618.284 + 2442.951) / 6636.514)
	=	0.075665	/	0.086684
	=	0.8729

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
	=	10653.193	/	11145.107
	=	0.9559

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))
	=	(378.349 / (378.349 + 2442.951))	/	(391.199 / (391.199 + 2383.569))
	=	0.134104	/	0.140984
	=	0.9512

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)
	=	(2336.886 / 10653.193)	/	(2238.685 / 11145.107)
	=	0.21936	/	0.200867
	=	1.0921

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)
	=	((1365.146 + 2911.913) / 6272.943)	/	((1398.353 + 2827.244) / 6636.514)
	=	0.681827	/	0.636719
	=	1.0708

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
	=	(106.346 - 0	-	470.244)	/	6272.943
	=	-0.058011

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.

Cashbuild has a M-score of -3.16 suggests that the company is unlikely to be a manipulator.

Cashbuild Beneish M-Score Related Terms

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Cashbuild (JSE:CSB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Cashbuild Ltd (JSE:CSB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2 Handel Road, Ormonde, Johannesburg, GT, ZAF, 2001

Website

https://www.cashbuild.co.za

Cashbuild Ltd is a South Africa-based company that is engaged in the retailing of building materials and associated products. The firm primarily operates stores in South Africa and the neighboring countries of Botswana, Swaziland, Lesotho, Namibia, and Malawi through its subsidiaries. Its stores are mostly located in towns, as well as townships, rural areas, and metropolitan settings. Cashbuild's products include cement, roofing, openings, timber, bricks, decorative, plumbing, hardware, ceilings, electrical, and tools. A sizable amount of its products are cement-related. The firm's customers include home-builders, contractors, farmers, traders and construction companies, as well as government-related infrastructure developers.