Ensign Energy Services (TSX:ESI) Beneish M-Score : -3.38 (As of May. 05, 2024)

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What is Ensign Energy Services 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 -3.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:ESI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.65 Med: -3.36 Max: -1.64
Current: -3.38

During the past 13 years, the highest Beneish M-Score of Ensign Energy Services was -1.64. The lowest was -4.65. And the median was -3.36.

Ensign Energy Services Beneish M-Score Historical Data

The historical data trend for Ensign Energy Services'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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Ensign Energy Services Beneish M-Score Chart

Ensign Energy Services Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.65

-4.53

-1.64

-3.20

-3.38

Ensign Energy Services 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															-3.20	-3.17	-3.30	-3.50	-3.38

Competitive Comparison of Ensign Energy Services's Beneish M-Score

For the Oil & Gas Drilling subindustry, Ensign Energy Services'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.

Ensign Energy Services's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ensign Energy Services's Beneish M-Score distribution charts can be found below:

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

Ensign Energy Services 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 Ensign Energy Services 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 * 0.7448

0.528 * 0.6655

0.404 * 1.153

0.892 * 1.136

0.115 * 0.8709

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.777

4.679 * -0.154

0.327 * 0.9163

-3.38

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$305 Mil.
Revenue was 430.54 + 444.405 + 432.77 + 484.052 = C$1,792 Mil.
Gross Profit was 66.215 + 54.221 + 56.432 + 63.998 = C$241 Mil.
Total Current Assets was C$382 Mil.
Total Assets was C$2,948 Mil.
Property, Plant and Equipment(Net PPE) was C$2,356 Mil.
Depreciation, Depletion and Amortization(DDA) was C$307 Mil.
Selling, General, & Admin. Expense(SGA) was C$60 Mil.
Total Current Liabilities was C$366 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,111 Mil.
Net Income was 31.922 + -5.229 + 10.302 + 4.241 = C$41 Mil.
Non Operating Income was 5.902 + 0.311 + 1.413 + -4.918 = C$3 Mil.
Cash Flow from Operations was 115.606 + 105.566 + 166.771 + 104.574 = C$493 Mil.

Total Receivables was C$360 Mil.
Revenue was 467.98 + 432.55 + 344.123 + 332.676 = C$1,577 Mil.
Gross Profit was 69.701 + 48.684 + 11.849 + 10.875 = C$141 Mil.
Total Current Assets was C$471 Mil.
Total Assets was C$3,184 Mil.
Property, Plant and Equipment(Net PPE) was C$2,517 Mil.
Depreciation, Depletion and Amortization(DDA) was C$281 Mil.
Selling, General, & Admin. Expense(SGA) was C$68 Mil.
Total Current Liabilities was C$1,178 Mil.
Long-Term Debt & Capital Lease Obligation was C$563 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)
	=	(304.544 / 1791.767)	/	(359.973 / 1577.329)
	=	0.169969	/	0.228217
	=	0.7448

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)
	=	(141.109 / 1577.329)	/	(240.866 / 1791.767)
	=	0.089461	/	0.134429
	=	0.6655

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 - (381.854 + 2356.487) / 2947.986)	/	(1 - (470.611 + 2516.923) / 3183.904)
	=	0.071115	/	0.061676
	=	1.153

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
	=	1791.767	/	1577.329
	=	1.136

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))
	=	(281.137 / (281.137 + 2516.923))	/	(307.343 / (307.343 + 2356.487))
	=	0.100476	/	0.115376
	=	0.8709

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)
	=	(60.32 / 1791.767)	/	(68.339 / 1577.329)
	=	0.033665	/	0.043326
	=	0.777

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)
	=	((1111.238 + 366.074) / 2947.986)	/	((562.837 + 1178.411) / 3183.904)
	=	0.501126	/	0.546891
	=	0.9163

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
	=	(41.236 - 2.708	-	492.517)	/	2947.986
	=	-0.154

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.

Ensign Energy Services has a M-score of -3.38 suggests that the company is unlikely to be a manipulator.

Ensign Energy Services Beneish M-Score Related Terms

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Ensign Energy Services (TSX:ESI) Business Description

Industry

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ESVIF:USA ENB:Germany

Address

400, 5th Avenue South West, Suite 1000, Calgary, AB, CAN, T2P 0L6

Website

https://www.ensignenergy.com

Ensign Energy Services Inc provides oilfield services to the crude oil and natural gas industries in Canada, the United States, and internationally. In Canada, the Company's oilfield services business includes drilling rigs, oil sands/coring rigs, well servicing, underbalanced and managed pressure drilling, and equipment rental services. In the United States, it offers drilling rigs, directional services, well servicing, equipment rental services, and trucking services, and Internationally, It offers drilling and workover rigs. Geographically the company operates in nine countries; Canada, the United States, Argentina, Australia, Bahrain, Kuwait, Oman, United Arab Emirates, and Venezuela.