Sadot Group (STU:0XJ) Beneish M-Score : 56.86 (As of Apr. 28, 2024)

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What is Sadot 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.

Warning Sign:

Beneish M-Score 56.86 higher than -1.78, which implies that the company might have manipulated its financial results.

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

STU:0XJ' s Beneish M-Score Range Over the Past 10 Years
Min: -6.59 Med: -1.67 Max: 56.86
Current: 56.86

During the past 8 years, the highest Beneish M-Score of Sadot Group was 56.86. The lowest was -6.59. And the median was -1.67.

Sadot Group Beneish M-Score Historical Data

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

Sadot Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-5.01

-5.02

1.67

10.19

56.86

Sadot Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															10.19	25.03	37.84	54.14	56.86

Competitive Comparison of Sadot Group's Beneish M-Score

For the Farm Products subindustry, Sadot 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.

Sadot Group's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sadot Group's Beneish M-Score distribution charts can be found below:

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

Sadot 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 Sadot 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 * 60.6768

0.528 * 1.9836

0.404 * 0.6373

0.892 * 4.4169

0.115 * 2.7927

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3539

4.679 * 0.032086

0.327 * 1.7292

56.07

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €91.9 Mil.
Revenue was 157.017 + 170.696 + 147.973 + 198.911 = €674.6 Mil.
Gross Profit was -0.663 + 2.722 + 2.839 + 4.365 = €9.3 Mil.
Total Current Assets was €103.5 Mil.
Total Assets was €163.3 Mil.
Property, Plant and Equipment(Net PPE) was €13.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.7 Mil.
Selling, General, & Admin. Expense(SGA) was €14.6 Mil.
Total Current Liabilities was €95.9 Mil.
Long-Term Debt & Capital Lease Obligation was €1.5 Mil.
Net Income was -1.619 + -4.856 + 0.175 + -0.996 = €-7.3 Mil.
Non Operating Income was 1.865 + -2.85 + 0.513 + 0.384 = €-0.1 Mil.
Cash Flow from Operations was -4.339 + -4.184 + -0.86 + -3.065 = €-12.4 Mil.

Total Receivables was €0.3 Mil.
Revenue was 144.456 + 2.852 + 2.772 + 2.651 = €152.7 Mil.
Gross Profit was 4.297 + 0.115 + -0.099 + -0.153 = €4.2 Mil.
Total Current Assets was €10.1 Mil.
Total Assets was €25.7 Mil.
Property, Plant and Equipment(Net PPE) was €4.1 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.9 Mil.
Selling, General, & Admin. Expense(SGA) was €9.3 Mil.
Total Current Liabilities was €6.2 Mil.
Long-Term Debt & Capital Lease Obligation was €2.6 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)
	=	(91.934 / 674.597)	/	(0.343 / 152.731)
	=	0.13628	/	0.002246
	=	60.6768

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)
	=	(4.16 / 152.731)	/	(9.263 / 674.597)
	=	0.027237	/	0.013731
	=	1.9836

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 - (103.484 + 12.991) / 163.309)	/	(1 - (10.052 + 4.086) / 25.705)
	=	0.286782	/	0.44999
	=	0.6373

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
	=	674.597	/	152.731
	=	4.4169

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))
	=	(1.921 / (1.921 + 4.086))	/	(1.68 / (1.68 + 12.991))
	=	0.319794	/	0.114512
	=	2.7927

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)
	=	(14.569 / 674.597)	/	(9.32 / 152.731)
	=	0.021597	/	0.061022
	=	0.3539

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)
	=	((1.512 + 95.902) / 163.309)	/	((2.622 + 6.245) / 25.705)
	=	0.596501	/	0.344952
	=	1.7292

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
	=	(-7.296 - -0.088	-	-12.448)	/	163.309
	=	0.032086

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.

Sadot Group has a M-score of 56.07 signals that the company is likely to be a manipulator.

Sadot Group Beneish M-Score Related Terms

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Sadot Group (STU:0XJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Sadot Group Inc (STU:0XJ) » Definitions » Beneish M-Score

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Traded in Other Exchanges

SDOT:USA 0XJ:Germany

Address

1751 River Run, Suite 200, Fort Worth, TX, USA, 76107

Website

https://www.sadotgroupinc.com

Sadot Group Inc operates in the food supply chain sector, connecting producers and consumers across the globe, delivering agri-commodities from producing geographies such as the Americas, Africa, and the Black Sea to consumer markets in Southeast Asia, China, and the Middle East/North Africa (MENA) region. The Sadot Group operates within three verticals of the Global food supply chain including Sustainable farm operations in the Mkushi region of Zambia; Global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat, and corn and; Food service operations with more than 50 restaurants across the United States.

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