Eco5tech (WAR:ECT) Beneish M-Score : -3.85 (As of May. 21, 2024)

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What is Eco5tech 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 -3.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Eco5tech's Beneish M-Score or its related term are showing as below:

WAR:ECT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85 Med: -1.63 Max: 0.7
Current: -3.85

During the past 4 years, the highest Beneish M-Score of Eco5tech was 0.70. The lowest was -3.85. And the median was -1.63.

Eco5tech Beneish M-Score Historical Data

The historical data trend for Eco5tech'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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Eco5tech Beneish M-Score Chart

Eco5tech Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-0.82

Eco5tech Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial									-0.82	0.70	-2.43	-3.16	-3.85

Competitive Comparison of Eco5tech's Beneish M-Score

For the Engineering & Construction subindustry, Eco5tech'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.

Eco5tech's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Eco5tech's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Eco5tech's Beneish M-Score falls into.

Eco5tech 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 Eco5tech 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 * 1.197

0.528 * 1.2136

0.404 * 0.7822

0.892 * 0.9305

0.115 * 1.4024

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2626

4.679 * -0.388706

0.327 * 0.5859

-3.85

This Year (Mar24) TTM:

Last Year (Dec22) TTM:

Total Receivables was zł6.43 Mil.
Revenue was 0.724 + 4.849 + 3.641 + 3.214 = zł12.43 Mil.
Gross Profit was -0.034 + 3.611 + 3.422 + 3.142 = zł10.14 Mil.
Total Current Assets was zł7.85 Mil.
Total Assets was zł8.52 Mil.
Property, Plant and Equipment(Net PPE) was zł0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.01 Mil.
Selling, General, & Admin. Expense(SGA) was zł2.84 Mil.
Total Current Liabilities was zł1.11 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.
Net Income was -2.205 + 0.091 + 1.056 + -0.141 = zł-1.20 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was -2.177 + 2.004 + 3.128 + -0.843 = zł2.11 Mil.

Total Receivables was zł5.77 Mil.
Revenue was 4.769 + 3.564 + 3.795 + 1.228 = zł13.36 Mil.
Gross Profit was 4.671 + 3.554 + 3.78 + 1.221 = zł13.23 Mil.
Total Current Assets was zł8.22 Mil.
Total Assets was zł9.15 Mil.
Property, Plant and Equipment(Net PPE) was zł0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.04 Mil.
Selling, General, & Admin. Expense(SGA) was zł11.61 Mil.
Total Current Liabilities was zł2.03 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 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)
	=	(6.428 / 12.428)	/	(5.771 / 13.356)
	=	0.517219	/	0.43209
	=	1.197

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)
	=	(13.226 / 13.356)	/	(10.141 / 12.428)
	=	0.990267	/	0.81598
	=	1.2136

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 - (7.847 + 0.019) / 8.518)	/	(1 - (8.219 + 0.032) / 9.146)
	=	0.076544	/	0.097857
	=	0.7822

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
	=	12.428	/	13.356
	=	0.9305

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))
	=	(0.038 / (0.038 + 0.032))	/	(0.012 / (0.012 + 0.019))
	=	0.542857	/	0.387097
	=	1.4024

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)
	=	(2.836 / 12.428)	/	(11.606 / 13.356)
	=	0.228194	/	0.868973
	=	0.2626

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 + 1.105) / 8.518)	/	((0 + 2.025) / 9.146)
	=	0.129725	/	0.221408
	=	0.5859

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
	=	(-1.199 - 0	-	2.112)	/	8.518
	=	-0.388706

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.

Eco5tech has a M-score of -3.85 suggests that the company is unlikely to be a manipulator.

Eco5tech Beneish M-Score Related Terms

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Eco5tech (WAR:ECT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Eco5tech SA (WAR:ECT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

ul. Filtrowa 65/45, Warsaw, POL, 02-055

Website

https://www.eco5tech.pl

Eco5tech SA is involved in construction design and implementation of design-build projects. It also offers consulting related to the preparation and construction of investment projects, supervising construction works as well.

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