Euro-Med Laboratories Philippines (PHS:EURO) Beneish M-Score : -2.59 (As of Jun. 04, 2024)

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What is Euro-Med Laboratories Philippines 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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PHS:EURO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18 Med: -2.62 Max: -2.04
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Euro-Med Laboratories Philippines was -2.04. The lowest was -3.18. And the median was -2.62.

Euro-Med Laboratories Philippines Beneish M-Score Historical Data

The historical data trend for Euro-Med Laboratories Philippines'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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Euro-Med Laboratories Philippines Beneish M-Score Chart

Euro-Med Laboratories Philippines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.80

-2.73

-2.34

-2.42

Euro-Med Laboratories Philippines Quarterly Data
	Dec18	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															-2.35	-2.52	-2.04	-2.42	-2.59

Competitive Comparison of Euro-Med Laboratories Philippines's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Euro-Med Laboratories Philippines'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.

Euro-Med Laboratories Philippines's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Euro-Med Laboratories Philippines's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Euro-Med Laboratories Philippines's Beneish M-Score falls into.

Euro-Med Laboratories Philippines 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 Euro-Med Laboratories Philippines 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 * 0.8518

0.528 * 0.9671

0.404 * 0.9391

0.892 * 1.1637

0.115 * 1.0534

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9643

4.679 * -0.014412

0.327 * 1.0555

-2.59

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₱1,588 Mil.
Revenue was 1168.811 + 1990.05 + 1134.872 + 1014.962 = ₱5,309 Mil.
Gross Profit was 425.328 + 663.413 + 454.023 + 398.347 = ₱1,941 Mil.
Total Current Assets was ₱4,999 Mil.
Total Assets was ₱10,600 Mil.
Property, Plant and Equipment(Net PPE) was ₱4,926 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱297 Mil.
Selling, General, & Admin. Expense(SGA) was ₱959 Mil.
Total Current Liabilities was ₱3,709 Mil.
Long-Term Debt & Capital Lease Obligation was ₱757 Mil.
Net Income was 43.633 + 121.902 + 90.714 + 39.025 = ₱295 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₱0 Mil.
Cash Flow from Operations was 166.131 + 449.436 + -230.422 + 62.893 = ₱448 Mil.

Total Receivables was ₱1,602 Mil.
Revenue was 1124.055 + 1596.536 + 981.007 + 860.19 = ₱4,562 Mil.
Gross Profit was 401.429 + 534.722 + 371.643 + 305.307 = ₱1,613 Mil.
Total Current Assets was ₱4,353 Mil.
Total Assets was ₱9,934 Mil.
Property, Plant and Equipment(Net PPE) was ₱4,907 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱313 Mil.
Selling, General, & Admin. Expense(SGA) was ₱854 Mil.
Total Current Liabilities was ₱3,166 Mil.
Long-Term Debt & Capital Lease Obligation was ₱799 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)
	=	(1588.126 / 5308.695)	/	(1602.181 / 4561.788)
	=	0.299156	/	0.351218
	=	0.8518

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)
	=	(1613.101 / 4561.788)	/	(1941.111 / 5308.695)
	=	0.353612	/	0.365647
	=	0.9671

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 - (4999.234 + 4925.515) / 10599.961)	/	(1 - (4353.045 + 4907.349) / 9934.228)
	=	0.063699	/	0.06783
	=	0.9391

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
	=	5308.695	/	4561.788
	=	1.1637

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))
	=	(312.581 / (312.581 + 4907.349))	/	(296.873 / (296.873 + 4925.515))
	=	0.059882	/	0.056846
	=	1.0534

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)
	=	(958.694 / 5308.695)	/	(854.299 / 4561.788)
	=	0.180589	/	0.187273
	=	0.9643

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)
	=	((756.961 + 3709.042) / 10599.961)	/	((799.439 + 3165.94) / 9934.228)
	=	0.421323	/	0.399163
	=	1.0555

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
	=	(295.274 - 0	-	448.038)	/	10599.961
	=	-0.014412

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.

Euro-Med Laboratories Philippines has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Euro-Med Laboratories Philippines Beneish M-Score Related Terms

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Euro-Med Laboratories Philippines (PHS:EURO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Euro-Med Laboratories Philippines Inc (PHS:EURO) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

San Marcelino Street, 1000 United Nations Avenue corner, PPL Building, 2nd floor, Manila, PHL, 1000

Website

http://www.euromedlab.net

Euro-Med Laboratories Philippines Inc is a pharmaceutical-based company that engages in the manufacture of pharmaceutical products such as large and small volume parenterals and other solutions. The company also manufactures sterile water for the injection, and other solutions such as ophthalmic, inhalation, irrigation and dialysis. It operates through the following segments: The Manufacturing pharmaceutical segment involves the manufacturing of pharmaceutical products. The Health and other care Service segment operates a dialysis center. Development and operation of quick-service restaurant segment include operations of the quick-service restaurant, catering, food production and other related services.

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