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Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) Beneish M-Score : -2.36 (As of May. 03, 2024)


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What is Construcciones y Auxiliar de Ferrocarriles 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Construcciones y Auxiliar de Ferrocarriles's Beneish M-Score or its related term are showing as below:

XMAD:CAF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8   Med: -2.6   Max: -2.27
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Construcciones y Auxiliar de Ferrocarriles was -2.27. The lowest was -2.80. And the median was -2.60.


Construcciones y Auxiliar de Ferrocarriles Beneish M-Score Historical Data

The historical data trend for Construcciones y Auxiliar de Ferrocarriles'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.

Construcciones y Auxiliar de Ferrocarriles Beneish M-Score Chart

Construcciones y Auxiliar de Ferrocarriles 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 -2.44 -2.67 -2.54 -2.43 -2.36

Construcciones y Auxiliar de Ferrocarriles Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Jun23 Dec23
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 - - -2.43 - -2.36

Competitive Comparison of Construcciones y Auxiliar de Ferrocarriles's Beneish M-Score

For the Railroads subindustry, Construcciones y Auxiliar de Ferrocarriles'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.


Construcciones y Auxiliar de Ferrocarriles's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Construcciones y Auxiliar de Ferrocarriles's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Construcciones y Auxiliar de Ferrocarriles's Beneish M-Score falls into.



Construcciones y Auxiliar de Ferrocarriles 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 Construcciones y Auxiliar de Ferrocarriles 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 * 0.95+0.528 * 1.0391+0.404 * 0.9524+0.892 * 1.2084+0.115 * 0.9382
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.00336-0.327 * 0.9803
=-2.36

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was €2,339 Mil.
Revenue was €3,825 Mil.
Gross Profit was €814 Mil.
Total Current Assets was €3,499 Mil.
Total Assets was €5,052 Mil.
Property, Plant and Equipment(Net PPE) was €490 Mil.
Depreciation, Depletion and Amortization(DDA) was €104 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €3,164 Mil.
Long-Term Debt & Capital Lease Obligation was €509 Mil.
Net Income was €89 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €106 Mil.
Total Receivables was €2,037 Mil.
Revenue was €3,165 Mil.
Gross Profit was €700 Mil.
Total Current Assets was €3,374 Mil.
Total Assets was €4,951 Mil.
Property, Plant and Equipment(Net PPE) was €483 Mil.
Depreciation, Depletion and Amortization(DDA) was €95 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €3,082 Mil.
Long-Term Debt & Capital Lease Obligation was €590 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)
=(2338.88 / 3825.285) / (2037.295 / 3165.47)
=0.611426 / 0.6436
=0.95

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)
=(699.952 / 3165.47) / (813.988 / 3825.285)
=0.221121 / 0.212791
=1.0391

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 - (3499.264 + 489.887) / 5052.354) / (1 - (3373.892 + 483.208) / 4951.088)
=0.210437 / 0.220959
=0.9524

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
=3825.285 / 3165.47
=1.2084

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))
=(95.394 / (95.394 + 483.208)) / (104.446 / (104.446 + 489.887))
=0.16487 / 0.175736
=0.9382

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)
=(0 / 3825.285) / (0 / 3165.47)
=0 / 0
=1

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)
=((509.154 + 3163.895) / 5052.354) / ((589.703 + 3082.039) / 4951.088)
=0.726998 / 0.741603
=0.9803

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
=(89.158 - 0 - 106.132) / 5052.354
=-0.00336

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.

Construcciones y Auxiliar de Ferrocarriles has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.


Construcciones y Auxiliar de Ferrocarriles Beneish M-Score Related Terms

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Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) Business Description

Traded in Other Exchanges
Address
Jose Miguel Iturrioz, 26, Guipuzcoa, Beasain, ESP, 20200
Construcciones y Auxiliar de Ferrocarriles SA is a Spain-based company that offers comprehensive railway solutions. The company's train-related products comprise high-speed rolling stock, wheelsets, traction and communication systems, signaling systems, and related services including vehicle maintenance, vehicle upgrading and refurbishment, and aftersales technical supports. In addition to supplying train-related products, the company also helps customers conduct viability studies, civil work, electrification projects, and system operation. The company operates under concession or turnkey models. Construcciones y Auxiliar de Ferrocarriles has a global presence, with Europe and Brazil being the two largest markets.