Saietta Group (LSE:SED) Beneish M-Score : -3.35 (As of May. 11, 2024)

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What is Saietta 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.

Good Sign:

Beneish M-Score -3.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:SED' s Beneish M-Score Range Over the Past 10 Years
Min: -4.4 Med: -3.35 Max: 2.5
Current: -3.35

During the past 5 years, the highest Beneish M-Score of Saietta Group was 2.50. The lowest was -4.40. And the median was -3.35.

Saietta Group Beneish M-Score Historical Data

The historical data trend for Saietta 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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Saietta Group Beneish M-Score Chart

Saietta Group Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

-4.40

2.50

-3.35

Saietta Group Semi-Annual Data
	Mar19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial				-	2.50	-	-3.35	-

Competitive Comparison of Saietta Group's Beneish M-Score

For the Auto Parts subindustry, Saietta 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.

Saietta Group's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Saietta Group's Beneish M-Score distribution charts can be found below:

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

Saietta 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 Saietta 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 * 1.5131

0.528 * 1.5458

0.404 * 1.3666

0.892 * 0.5848

0.115 * 0.6405

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.4095

4.679 * -0.156087

0.327 * 1.1639

-3.35

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was £4.78 Mil.
Revenue was £2.10 Mil.
Gross Profit was £0.65 Mil.
Total Current Assets was £14.17 Mil.
Total Assets was £39.68 Mil.
Property, Plant and Equipment(Net PPE) was £13.83 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.85 Mil.
Selling, General, & Admin. Expense(SGA) was £8.58 Mil.
Total Current Liabilities was £5.40 Mil.
Long-Term Debt & Capital Lease Obligation was £5.06 Mil.
Net Income was £-27.81 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-21.61 Mil.

Total Receivables was £5.40 Mil.
Revenue was £3.60 Mil.
Gross Profit was £1.73 Mil.
Total Current Assets was £27.18 Mil.
Total Assets was £42.70 Mil.
Property, Plant and Equipment(Net PPE) was £6.31 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.52 Mil.
Selling, General, & Admin. Expense(SGA) was £3.33 Mil.
Total Current Liabilities was £7.29 Mil.
Long-Term Debt & Capital Lease Obligation was £2.38 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)
	=	(4.78 / 2.103)	/	(5.402 / 3.596)
	=	2.272943	/	1.502225
	=	1.5131

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)
	=	(1.726 / 3.596)	/	(0.653 / 2.103)
	=	0.479978	/	0.310509
	=	1.5458

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 - (14.166 + 13.829) / 39.683)	/	(1 - (27.179 + 6.314) / 42.695)
	=	0.294534	/	0.215529
	=	1.3666

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
	=	2.103	/	3.596
	=	0.5848

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))
	=	(0.517 / (0.517 + 6.314))	/	(1.853 / (1.853 + 13.829))
	=	0.075684	/	0.118161
	=	0.6405

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)
	=	(8.577 / 2.103)	/	(3.326 / 3.596)
	=	4.078459	/	0.924917
	=	4.4095

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)
	=	((5.058 + 5.404) / 39.683)	/	((2.381 + 7.29) / 42.695)
	=	0.263639	/	0.226514
	=	1.1639

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
	=	(-27.806 - 0	-	-21.612)	/	39.683
	=	-0.156087

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.

Saietta Group has a M-score of -3.35 suggests that the company is unlikely to be a manipulator.

Saietta Group Beneish M-Score Related Terms

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Saietta Group (LSE:SED) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Saietta Group PLC (LSE:SED) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

c/- Fieldfisher, Riverbank House, 2 Swan Lane, London, GBR, EC4R 3TT

Website

https://www.saietta.com

Saietta Group PLC is an engineering company. Its branded AFT (Axial Flux Technology) is modular in design, meaning high and low voltage e-motor solutions can be provided from scooters to large vehicles. It operates in three segments; Lightweight, Heavy-duty and Marine division. It generates maximum revenue from Lightweight segment. AFT has been designed for high automation in volume production meaning AFT cost-effectively delivers class performance. Geographically, the company operates in United Kingdom, European Unions and the rest of the world.

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