Delegat Group (NZSE:DGL) Beneish M-Score : -2.37 (As of Jun. 04, 2024)

View and export this data going back to 2006. Start your Free Trial

What is Delegat 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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NZSE:DGL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.16 Med: -2.37 Max: -2.02
Current: -2.37

During the past 13 years, the highest Beneish M-Score of Delegat Group was -2.02. The lowest was -3.16. And the median was -2.37.

Delegat Group Beneish M-Score Historical Data

The historical data trend for Delegat 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.

* Premium members only.

Delegat Group Beneish M-Score Chart

Delegat Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

Get a 7-Day Free Trial

-2.43

-2.61

-2.04

-2.02

-2.37

Delegat Group 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															-	-2.02	-	-2.37	-

Competitive Comparison of Delegat Group's Beneish M-Score

For the Beverages - Wineries & Distilleries subindustry, Delegat 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.

Delegat Group's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Delegat Group's Beneish M-Score distribution charts can be found below:

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

Delegat 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 Delegat 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 * 0.9888

0.528 * 1.0677

0.404 * 0.8941

0.892 * 1.1492

0.115 * 1.0726

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0262

4.679 * -0.002268

0.327 * 1.0009

-2.37

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was NZ$57.2 Mil.
Revenue was NZ$373.9 Mil.
Gross Profit was NZ$162.2 Mil.
Total Current Assets was NZ$296.2 Mil.
Total Assets was NZ$1,063.3 Mil.
Property, Plant and Equipment(Net PPE) was NZ$757.5 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$23.6 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$65.3 Mil.
Total Current Liabilities was NZ$63.4 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$414.3 Mil.
Net Income was NZ$64.8 Mil.
Gross Profit was NZ$7.5 Mil.
Cash Flow from Operations was NZ$59.7 Mil.

Total Receivables was NZ$50.4 Mil.
Revenue was NZ$325.3 Mil.
Gross Profit was NZ$150.7 Mil.
Total Current Assets was NZ$257.9 Mil.
Total Assets was NZ$967.3 Mil.
Property, Plant and Equipment(Net PPE) was NZ$699.6 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$23.4 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$55.4 Mil.
Total Current Liabilities was NZ$100.9 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$333.3 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)
	=	(57.244 / 373.87)	/	(50.374 / 325.325)
	=	0.153112	/	0.154842
	=	0.9888

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)
	=	(150.723 / 325.325)	/	(162.236 / 373.87)
	=	0.4633	/	0.433937
	=	1.0677

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 - (296.158 + 757.459) / 1063.307)	/	(1 - (257.892 + 699.596) / 967.347)
	=	0.009113	/	0.010192
	=	0.8941

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
	=	373.87	/	325.325
	=	1.1492

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))
	=	(23.443 / (23.443 + 699.596))	/	(23.611 / (23.611 + 757.459))
	=	0.032423	/	0.030229
	=	1.0726

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)
	=	(65.331 / 373.87)	/	(55.398 / 325.325)
	=	0.174743	/	0.170285
	=	1.0262

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)
	=	((414.336 + 63.406) / 1063.307)	/	((333.325 + 100.903) / 967.347)
	=	0.449298	/	0.448885
	=	1.0009

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
	=	(64.825 - 7.521	-	59.716)	/	1063.307
	=	-0.002268

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.

Delegat Group has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.

Delegat Group Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Delegat Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Delegat Group (NZSE:DGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Delegat Group Ltd (NZSE:DGL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Customs Street West, Level 31, Auckland, NTL, NZL, 1010

Website

https://www.delegat.com

Delegat Group Ltd is a wine production and distribution company. It markets its products under the Oyster Bay and Barossa Valley Estate brands. The group's primary source of revenue is derived by providing wine to third-party retailers and distributors. Its segments are Delegat Limited, Delegat Australia Pty Ltd, Delegat Europe Limited, Delegat USA, Inc, and Others. The group generates the majority of the revenue from Delegat Limited. It sells and markets its product through a combination of subsidiary companies based overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island markets. Rest of the segments act as distributors and supports in the marketing of the products in their respective geographic regions.