Baba Eco Group Bhd (XKLS:03012) Beneish M-Score : -3.33 (As of May. 26, 2024)

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What is Baba Eco Group Bhd 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 -3.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:03012' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33 Med: -2.38 Max: -0.43
Current: -3.33

During the past 9 years, the highest Beneish M-Score of Baba Eco Group Bhd was -0.43. The lowest was -3.33. And the median was -2.38.

Baba Eco Group Bhd Beneish M-Score Historical Data

The historical data trend for Baba Eco Group Bhd'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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Baba Eco Group Bhd Beneish M-Score Chart

Baba Eco Group Bhd Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Beneish M-Score

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-0.43

-2.19

-3.04

-3.33

Baba Eco Group Bhd Semi-Annual Data
	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Beneish M-Score	Get a 7-Day Free Trial										-2.19	-	-3.04	-	-3.33

Competitive Comparison of Baba Eco Group Bhd's Beneish M-Score

For the Home Improvement Retail subindustry, Baba Eco Group Bhd'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.

Baba Eco Group Bhd's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Baba Eco Group Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Baba Eco Group Bhd's Beneish M-Score falls into.

Baba Eco Group Bhd 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 Baba Eco Group Bhd 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 * 1.1586

0.528 * 0.9767

0.404 * 0.1699

0.892 * 0.7299

0.115 * 0.8161

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1942

4.679 * -0.066488

0.327 * 1.1128

-3.33

This Year (Oct23) TTM:

Last Year (Oct22) TTM:

Total Receivables was RM5.57 Mil.
Revenue was RM33.91 Mil.
Gross Profit was RM15.16 Mil.
Total Current Assets was RM36.51 Mil.
Total Assets was RM77.26 Mil.
Property, Plant and Equipment(Net PPE) was RM40.07 Mil.
Depreciation, Depletion and Amortization(DDA) was RM2.17 Mil.
Selling, General, & Admin. Expense(SGA) was RM12.21 Mil.
Total Current Liabilities was RM6.78 Mil.
Long-Term Debt & Capital Lease Obligation was RM5.99 Mil.
Net Income was RM2.52 Mil.
Gross Profit was RM0.00 Mil.
Cash Flow from Operations was RM7.65 Mil.

Total Receivables was RM6.59 Mil.
Revenue was RM46.45 Mil.
Gross Profit was RM20.29 Mil.
Total Current Assets was RM28.89 Mil.
Total Assets was RM73.62 Mil.
Property, Plant and Equipment(Net PPE) was RM40.90 Mil.
Depreciation, Depletion and Amortization(DDA) was RM1.79 Mil.
Selling, General, & Admin. Expense(SGA) was RM14.01 Mil.
Total Current Liabilities was RM7.79 Mil.
Long-Term Debt & Capital Lease Obligation was RM3.15 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)
	=	(5.571 / 33.905)	/	(6.588 / 46.454)
	=	0.164312	/	0.141818
	=	1.1586

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)
	=	(20.289 / 46.454)	/	(15.162 / 33.905)
	=	0.436755	/	0.447191
	=	0.9767

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 - (36.511 + 40.068) / 77.262)	/	(1 - (28.892 + 40.899) / 73.621)
	=	0.00884	/	0.052023
	=	0.1699

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
	=	33.905	/	46.454
	=	0.7299

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))
	=	(1.793 / (1.793 + 40.899))	/	(2.174 / (2.174 + 40.068))
	=	0.041999	/	0.051465
	=	0.8161

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)
	=	(12.209 / 33.905)	/	(14.008 / 46.454)
	=	0.360094	/	0.301546
	=	1.1942

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)
	=	((5.989 + 6.782) / 77.262)	/	((3.147 + 7.789) / 73.621)
	=	0.165295	/	0.148545
	=	1.1128

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
	=	(2.516 - 0	-	7.653)	/	77.262
	=	-0.066488

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.

Baba Eco Group Bhd has a M-score of -3.33 suggests that the company is unlikely to be a manipulator.

Baba Eco Group Bhd Beneish M-Score Related Terms

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Baba Eco Group Bhd (XKLS:03012) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Baba Eco Group Bhd (XKLS:03012) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1384, Atas Lot 841, MK-1, Jalan Tasek, Seberang Perai Selatan, Pulau Pinang, Simpang Ampat, MYS, 14120

Website

https://www.baba.com.my

Baba Eco Group Bhd is an integrated gardening supplies provider under brand name Baba. The business activities of the group include manufacturing and trading of a diversified range of eco-friendly biodegradable plastic flower pots and planting media; the processing and trading of organic fertilizers and natural pesticides; and the trading of a diversified range of gardening accessories, seeds and agricultural produce. Geographically it serves both Malaysian and other international market.

Baba Eco Group Bhd (XKLS:03012) Headlines

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