NIBE Industrier AB (NIBE Industrier AB) Beneish M-Score : -2.61 (As of May. 23, 2024)

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What is NIBE Industrier AB 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NDRBF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83 Med: -2.21 Max: -1.75
Current: -2.61

During the past 13 years, the highest Beneish M-Score of NIBE Industrier AB was -1.75. The lowest was -2.83. And the median was -2.21.

NIBE Industrier AB Beneish M-Score Historical Data

The historical data trend for NIBE Industrier AB'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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NIBE Industrier AB Beneish M-Score Chart

NIBE Industrier AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.45

-2.83

-2.28

-1.95

-2.58

NIBE Industrier AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.09	-2.27	-2.19	-2.58	-2.61

Competitive Comparison of NIBE Industrier AB's Beneish M-Score

For the Building Products & Equipment subindustry, NIBE Industrier AB'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.

NIBE Industrier AB's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, NIBE Industrier AB's Beneish M-Score distribution charts can be found below:

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

NIBE Industrier AB 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 NIBE Industrier AB 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 * 0.924

0.528 * 1.077

0.404 * 1.1216

0.892 * 1.0173

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1474

4.679 * -0.008843

0.327 * 1.2901

-2.61

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $677 Mil.
Revenue was 911.894 + 1136.328 + 1038.72 + 1098.792 = $4,186 Mil.
Gross Profit was 163.764 + 378.549 + 350.57 + 367.347 = $1,260 Mil.
Total Current Assets was $2,280 Mil.
Total Assets was $6,664 Mil.
Property, Plant and Equipment(Net PPE) was $1,167 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $905 Mil.
Total Current Liabilities was $1,497 Mil.
Long-Term Debt & Capital Lease Obligation was $1,651 Mil.
Net Income was -82.314 + 95.539 + 109.7 + 122.48 = $245 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -24.877 + 218.765 + 14.705 + 95.737 = $304 Mil.

Total Receivables was $720 Mil.
Revenue was 1111.652 + 1124.205 + 916.49 + 962.242 = $4,115 Mil.
Gross Profit was 372.078 + 376.084 + 284.599 + 301.448 = $1,334 Mil.
Total Current Assets was $2,188 Mil.
Total Assets was $5,351 Mil.
Property, Plant and Equipment(Net PPE) was $859 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $775 Mil.
Total Current Liabilities was $1,282 Mil.
Long-Term Debt & Capital Lease Obligation was $677 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)
	=	(677.053 / 4185.734)	/	(720.292 / 4114.589)
	=	0.161753	/	0.175058
	=	0.924

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)
	=	(1334.209 / 4114.589)	/	(1260.23 / 4185.734)
	=	0.324263	/	0.301077
	=	1.077

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 - (2279.927 + 1166.521) / 6663.817)	/	(1 - (2188.273 + 859.273) / 5351.126)
	=	0.482812	/	0.430485
	=	1.1216

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
	=	4185.734	/	4114.589
	=	1.0173

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 / (0 + 859.273))	/	(0 / (0 + 1166.521))
	=	0	/	0
	=	1

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)
	=	(904.899 / 4185.734)	/	(775.216 / 4114.589)
	=	0.216186	/	0.188407
	=	1.1474

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)
	=	((1650.61 + 1496.931) / 6663.817)	/	((676.861 + 1282.228) / 5351.126)
	=	0.472333	/	0.366108
	=	1.2901

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
	=	(245.405 - 0	-	304.33)	/	6663.817
	=	-0.008843

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.

NIBE Industrier AB has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

NIBE Industrier AB Beneish M-Score Related Terms

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NIBE Industrier AB (NIBE Industrier AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » NIBE Industrier AB (OTCPK:NDRBF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NIABY:USA NIBE B:Sweden NIBEBs:UK 0RH0:UK NJB:Germany NIBEB:Switzerland

Address

Hannabadsvagen 5, Box 14, Markaryd, SWE, SE- 285 21

Website

https://www.nibe.com

NIBE Industrier AB manufactures and sells energy-efficient products for industrial and consumer use. The firm is organized into three segments by product type. The climate solutions segment, which generates the majority of revenue, sells HVAC systems and hot water heaters to homes, apartment buildings, and other large properties. The elements segment sells components and elements to multiple industries, including appliance manufacturers, home remodelers, energy, and automotive. The stoves segment sells energy-efficient stoves and chimney systems to residential and commercial customers. The vast majority of revenue comes from Europe.