The Good Shroom Co (TSXV:MUSH) Beneish M-Score : 0.58 (As of Jun. 05, 2024)

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What is The Good Shroom Co 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 0.58 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSXV:MUSH' s Beneish M-Score Range Over the Past 10 Years
Min: 0.58 Med: 0.58 Max: 0.58
Current: 0.58

During the past 3 years, the highest Beneish M-Score of The Good Shroom Co was 0.58. The lowest was 0.58. And the median was 0.58.

The Good Shroom Co Beneish M-Score Historical Data

The historical data trend for The Good Shroom Co'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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The Good Shroom Co Beneish M-Score Chart

The Good Shroom Co Annual Data

Trend

Jul21

Jul22

Jul23

Beneish M-Score

The Good Shroom Co Quarterly Data
	Mar20	Mar21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score	Get a 7-Day Free Trial								-	-	-	-	0.58

Competitive Comparison of The Good Shroom Co's Beneish M-Score

For the Beverages - Non-Alcoholic subindustry, The Good Shroom Co'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.

The Good Shroom Co's Beneish M-Score Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Good Shroom Co's Beneish M-Score distribution charts can be found below:

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

The Good Shroom Co 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 The Good Shroom Co 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 * 0.6798

0.528 * 0.8183

0.404 * 6.6264

0.892 * 1.9888

0.115 * 1.0834

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3223

4.679 * 0.038801

0.327 * 1.0444

0.58

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was C$0.70 Mil.
Revenue was 0.928 + 1.511 + 0.798 + 1.025 = C$4.26 Mil.
Gross Profit was 0.333 + 0.484 + 0.022 + 0.279 = C$1.12 Mil.
Total Current Assets was C$1.65 Mil.
Total Assets was C$1.70 Mil.
Property, Plant and Equipment(Net PPE) was C$0.04 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.02 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.13 Mil.
Total Current Liabilities was C$1.08 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.01 Mil.
Net Income was 0.056 + 0.092 + -0.197 + 0.014 = C$-0.04 Mil.
Non Operating Income was 0 + -0.001 + 0 + 0 = C$-0.00 Mil.
Cash Flow from Operations was -0.056 + 0.041 + 0.099 + -0.184 = C$-0.10 Mil.

Total Receivables was C$0.52 Mil.
Revenue was 0.67 + 0.67 + 0.384 + 0.419 = C$2.14 Mil.
Gross Profit was 0.182 + 0.182 + 0.002 + 0.094 = C$0.46 Mil.
Total Current Assets was C$1.54 Mil.
Total Assets was C$1.61 Mil.
Property, Plant and Equipment(Net PPE) was C$0.07 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.04 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.76 Mil.
Total Current Liabilities was C$0.92 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.07 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)
	=	(0.703 / 4.262)	/	(0.52 / 2.143)
	=	0.164946	/	0.24265
	=	0.6798

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)
	=	(0.46 / 2.143)	/	(1.118 / 4.262)
	=	0.214652	/	0.262318
	=	0.8183

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 - (1.653 + 0.041) / 1.701)	/	(1 - (1.54 + 0.069) / 1.61)
	=	0.004115	/	0.000621
	=	6.6264

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
	=	4.262	/	2.143
	=	1.9888

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))
	=	(0.04 / (0.04 + 0.069))	/	(0.021 / (0.021 + 0.041))
	=	0.366972	/	0.33871
	=	1.0834

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)
	=	(1.125 / 4.262)	/	(1.755 / 2.143)
	=	0.263961	/	0.818945
	=	0.3223

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)
	=	((0.012 + 1.076) / 1.701)	/	((0.068 + 0.918) / 1.61)
	=	0.639624	/	0.612422
	=	1.0444

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
	=	(-0.035 - -0.001	-	-0.1)	/	1.701
	=	0.038801

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.

The Good Shroom Co has a M-score of 0.58 signals that the company is likely to be a manipulator.

The Good Shroom Co Beneish M-Score Related Terms

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The Good Shroom Co (TSXV:MUSH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » The Good Shroom Co Inc (TSXV:MUSH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TGSHF:USA

Address

324 Marie-Curie, Vaudreuil, QC, CAN, J7V 5V5

Website

https://www.thegoodshroom.co

The Good Shroom Co Inc operates a portfolio of brands that include traditional cannabis and beverage products. The company exists to promote the use of mushrooms through its brands; The Teo Nan brand is a functional mushroom beverage range serving the American and Canadian wellness market via DTC and retail; The Nordique Royale is a premium quality hash; and The Velada brand is a range of CBD-infused functional mushroom beverages serving the Canadian legal cannabis market.

Executives

Scott Jardin

Senior Officer

The Good Shroom Co (TSXV:MUSH) Headlines

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