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Martinrea International (TSX:MRE) Beneish M-Score : -2.88 (As of May. 18, 2024)


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What is Martinrea International 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:MRE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Med: -2.75   Max: -2.33
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Martinrea International was -2.33. The lowest was -3.03. And the median was -2.75.


Martinrea International Beneish M-Score Historical Data

The historical data trend for Martinrea International'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.

* Premium members only.

Martinrea International Beneish M-Score Chart

Martinrea International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.80 -2.73 -2.50 -2.73 -2.94

Martinrea International 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.78 -2.79 -2.72 -2.94 -2.88

Competitive Comparison of Martinrea International's Beneish M-Score

For the Auto Parts subindustry, Martinrea International'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.


Martinrea International's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Martinrea International's Beneish M-Score distribution charts can be found below:

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



Martinrea International 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 Martinrea International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8304+0.528 * 0.9699+0.404 * 1.1089+0.892 * 1.0924+0.115 * 0.9073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0222+4.679 * -0.077805-0.327 * 0.9374
=-2.88

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was C$846 Mil.
Revenue was 1323.913 + 1296.121 + 1378.938 + 1361.055 = C$5,360 Mil.
Gross Profit was 172.537 + 153.228 + 181.194 + 173.589 = C$681 Mil.
Total Current Assets was C$1,611 Mil.
Total Assets was C$4,116 Mil.
Property, Plant and Equipment(Net PPE) was C$2,179 Mil.
Depreciation, Depletion and Amortization(DDA) was C$327 Mil.
Selling, General, & Admin. Expense(SGA) was C$323 Mil.
Total Current Liabilities was C$1,308 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,222 Mil.
Net Income was 43.65 + 1.85 + 53.744 + 49.9 = C$149 Mil.
Non Operating Income was -2.071 + -29.24 + 6.392 + -1.332 = C$-26 Mil.
Cash Flow from Operations was 39.054 + 193.263 + 153.204 + 110.098 = C$496 Mil.
Total Receivables was C$933 Mil.
Revenue was 1303.889 + 1294.592 + 1194.083 + 1113.875 = C$4,906 Mil.
Gross Profit was 167.386 + 158.504 + 152.534 + 125.789 = C$604 Mil.
Total Current Assets was C$1,815 Mil.
Total Assets was C$4,321 Mil.
Property, Plant and Equipment(Net PPE) was C$2,198 Mil.
Depreciation, Depletion and Amortization(DDA) was C$295 Mil.
Selling, General, & Admin. Expense(SGA) was C$289 Mil.
Total Current Liabilities was C$1,516 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,318 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)
=(846.164 / 5360.027) / (932.776 / 4906.439)
=0.157866 / 0.190113
=0.8304

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)
=(604.213 / 4906.439) / (680.548 / 5360.027)
=0.123147 / 0.126967
=0.9699

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 - (1611.083 + 2178.992) / 4115.716) / (1 - (1815.49 + 2197.542) / 4321.378)
=0.079121 / 0.071354
=1.1089

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
=5360.027 / 4906.439
=1.0924

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))
=(294.828 / (294.828 + 2197.542)) / (326.688 / (326.688 + 2178.992))
=0.118292 / 0.130379
=0.9073

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)
=(323.106 / 5360.027) / (289.346 / 4906.439)
=0.060281 / 0.058973
=1.0222

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)
=((1222.116 + 1307.859) / 4115.716) / ((1317.762 + 1515.895) / 4321.378)
=0.614711 / 0.65573
=0.9374

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
=(149.144 - -26.251 - 495.619) / 4115.716
=-0.077805

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.

Martinrea International has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.


Martinrea International Beneish M-Score Related Terms

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Martinrea International (TSX:MRE) Business Description

Traded in Other Exchanges
Address
3210 Langstaff Road, Vaughan, ON, CAN, L4K 5B2
Martinrea International Inc is a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems. Its products are used primarily in the automotive sector by the majority of vehicle manufacturers. Martinrea manufactures aluminum engine blocks, specialized products, suspensions, chassis modules and components, and fluid management systems for fuel, power steering and brake fluids. The company also provides metal forming and welding solutions. The largest end market for Martinrea's products in North America.
Executives
Ganesh Koduvayur Venkatasubramanian Kesavan Iyer Senior Officer
Armando Pagliari Senior Officer

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