IGM Financial (TSX:IGM) Beneish M-Score : -2.30 (As of May. 04, 2024)

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What is IGM Financial 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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:IGM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59 Med: -2.35 Max: -1.78
Current: -2.3

During the past 13 years, the highest Beneish M-Score of IGM Financial was -1.78. The lowest was -3.59. And the median was -2.35.

IGM Financial Beneish M-Score Historical Data

The historical data trend for IGM Financial'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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IGM Financial Beneish M-Score Chart

IGM Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-2.79

-2.00

-2.50

-2.38

IGM Financial Quarterly Data
	Jun19	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															-2.62	-3.59	-2.03	-2.38	-2.30

Competitive Comparison of IGM Financial's Beneish M-Score

For the Asset Management subindustry, IGM Financial'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.

IGM Financial's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, IGM Financial's Beneish M-Score distribution charts can be found below:

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

IGM Financial 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 IGM Financial 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 * 1.0028

0.528 * 0.9782

0.404 * 1.2715

0.892 * 1.0416

0.115 * 1.7024

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2271

4.679 * 0.002395

0.327 * 1.03

-2.30

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$5,516 Mil.
Revenue was 840.058 + 794.882 + 811.03 + 799.242 = C$3,245 Mil.
Gross Profit was 759.966 + -603.803 + 732.382 + 719.819 = C$1,608 Mil.
Total Current Assets was C$9,040 Mil.
Total Assets was C$18,432 Mil.
Property, Plant and Equipment(Net PPE) was C$306 Mil.
Depreciation, Depletion and Amortization(DDA) was C$54 Mil.
Selling, General, & Admin. Expense(SGA) was C$111 Mil.
Total Current Liabilities was C$2,674 Mil.
Long-Term Debt & Capital Lease Obligation was C$4,918 Mil.
Net Income was 223.385 + 419.597 + 209.756 + 138.201 = C$991 Mil.
Non Operating Income was 51.7 + -52.623 + 38.474 + 51.835 = C$89 Mil.
Cash Flow from Operations was 131.903 + 228.2 + 230.575 + 266.731 = C$857 Mil.

Total Receivables was C$5,282 Mil.
Revenue was 781.214 + 779.034 + 778.704 + 776.731 = C$3,116 Mil.
Gross Profit was 701.888 + -587.292 + 701.244 + 694.643 = C$1,510 Mil.
Total Current Assets was C$11,325 Mil.
Total Assets was C$18,997 Mil.
Property, Plant and Equipment(Net PPE) was C$307 Mil.
Depreciation, Depletion and Amortization(DDA) was C$105 Mil.
Selling, General, & Admin. Expense(SGA) was C$87 Mil.
Total Current Liabilities was C$2,838 Mil.
Long-Term Debt & Capital Lease Obligation was C$4,759 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)
	=	(5516.318 / 3245.212)	/	(5281.595 / 3115.683)
	=	1.699833	/	1.695164
	=	1.0028

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)
	=	(1510.483 / 3115.683)	/	(1608.364 / 3245.212)
	=	0.4848	/	0.495611
	=	0.9782

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 - (9039.633 + 305.927) / 18432.212)	/	(1 - (11324.933 + 306.816) / 18997.36)
	=	0.492977	/	0.387718
	=	1.2715

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
	=	3245.212	/	3115.683
	=	1.0416

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))
	=	(104.856 / (104.856 + 306.816))	/	(53.826 / (53.826 + 305.927))
	=	0.254708	/	0.149619
	=	1.7024

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)
	=	(110.605 / 3245.212)	/	(86.542 / 3115.683)
	=	0.034083	/	0.027776
	=	1.2271

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)
	=	((4917.824 + 2674.102) / 18432.212)	/	((4758.628 + 2838.444) / 18997.36)
	=	0.411884	/	0.399901
	=	1.03

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
	=	(990.939 - 89.386	-	857.409)	/	18432.212
	=	0.002395

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.

IGM Financial has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.

IGM Financial Beneish M-Score Related Terms

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IGM Financial (TSX:IGM) Business Description

Industry

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Traded in Other Exchanges

IGIFF:USA C7G:Germany

Address

447 Portage Avenue, Winnipeg, MB, CAN, R3B 3H5

Website

https://www.igmfinancial.com

IGM Financial is the largest non-bank-affiliated asset manager in Canada. The firm is part of the Power Financial group of companies, which includes Great-West Life, London Life, and Canada Life. IGM has two main operating divisions—asset management (operated through Mackenzie Investments) and wealth management (via its Investors Group Wealth Management subsidiary)—that provide investment management products and services. IGM had CAD 215.3 billion in assets under management, or AUM, and CAD 35.0 billion in assets under advisement, or AUA, at the end of October 2023. Investment Planning Counsel is now being accounted for as a discontinued operation, having been sold earlier this year, with the deal closed in November 2023.