Albertsons (STU:27S) Beneish M-Score : -2.67 (As of May. 07, 2024)

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What is Albertsons 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:27S' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04 Med: -2.78 Max: -2.27
Current: -2.67

During the past 12 years, the highest Beneish M-Score of Albertsons was -2.27. The lowest was -3.04. And the median was -2.78.

Albertsons Beneish M-Score Historical Data

The historical data trend for Albertsons'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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Albertsons Beneish M-Score Chart

Albertsons Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-3.04

-2.99

-2.78

-2.54

-2.67

Albertsons Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-2.54	-2.53	-2.61	-2.46	-2.67

Competitive Comparison of Albertsons's Beneish M-Score

For the Grocery Stores subindustry, Albertsons'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.

Albertsons's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Beneish M-Score distribution charts can be found below:

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

Albertsons 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 Albertsons 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 * 1.068

0.528 * 1.007

0.404 * 0.9384

0.892 * 0.9791

0.115 * 1.0535

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9971

4.679 * -0.050573

0.327 * 0.9558

-2.67

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was €672 Mil.
Revenue was 17000.716 + 17146.945 + 16772.572 + 22126.184 = €73,046 Mil.
Gross Profit was 4768.673 + 4802.305 + 4623.055 + 6129.684 = €20,324 Mil.
Total Current Assets was €5,829 Mil.
Total Assets was €24,307 Mil.
Property, Plant and Equipment(Net PPE) was €14,417 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,253 Mil.
Selling, General, & Admin. Expense(SGA) was €18,376 Mil.
Total Current Liabilities was €6,913 Mil.
Long-Term Debt & Capital Lease Obligation was €12,307 Mil.
Net Income was 232.213 + 333.934 + 244.747 + 383.824 = €1,195 Mil.
Non Operating Income was -2.966 + -15.893 + 0.275 + -10.672 = €-29 Mil.
Cash Flow from Operations was 860.905 + 353.8 + 467.303 + 771.236 = €2,453 Mil.

Total Receivables was €642 Mil.
Revenue was 17059.603 + 17809.957 + 17686.448 + 22051.544 = €74,608 Mil.
Gross Profit was 4748.736 + 5024.388 + 4939.54 + 6191.57 = €20,904 Mil.
Total Current Assets was €5,857 Mil.
Total Assets was €24,441 Mil.
Property, Plant and Equipment(Net PPE) was €14,232 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,363 Mil.
Selling, General, & Admin. Expense(SGA) was €18,824 Mil.
Total Current Liabilities was €7,872 Mil.
Long-Term Debt & Capital Lease Obligation was €12,348 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)
	=	(671.519 / 73046.417)	/	(642.218 / 74607.552)
	=	0.009193	/	0.008608
	=	1.068

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)
	=	(20904.234 / 74607.552)	/	(20323.717 / 73046.417)
	=	0.280189	/	0.27823
	=	1.007

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 - (5828.512 + 14416.611) / 24306.96)	/	(1 - (5856.554 + 14232.105) / 24441.099)
	=	0.167106	/	0.178079
	=	0.9384

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
	=	73046.417	/	74607.552
	=	0.9791

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))
	=	(2363.137 / (2363.137 + 14232.105))	/	(2253.249 / (2253.249 + 14416.611))
	=	0.142398	/	0.135169
	=	1.0535

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)
	=	(18375.93 / 73046.417)	/	(18823.882 / 74607.552)
	=	0.251565	/	0.252305
	=	0.9971

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)
	=	((12307.408 + 6913.288) / 24306.96)	/	((12348.04 + 7872.499) / 24441.099)
	=	0.790749	/	0.827317
	=	0.9558

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
	=	(1194.718 - -29.256	-	2453.244)	/	24306.96
	=	-0.050573

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.

Albertsons has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Albertsons Beneish M-Score Related Terms

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Albertsons (STU:27S) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Albertsons Companies Inc (STU:27S) » Definitions » Beneish M-Score

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ACI:USA

Address

250 Parkcenter Boulevard, Boise, ID, USA, 83706

Website

https://www.albertsonscompanies.com

Albertsons is the second-largest conventional grocer in America, operating 2,271 stores under 24 banners in 34 states (as of the end of fiscal 2022). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 25% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 19 food production plants (as of the end of fiscal 2022). Albertsons is a top two grocer in two thirds of its major markets (as of early 2022, according to company data), and virtually all of its sales come from the United States. Narrow-moat Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.

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