Highlight Communications AG (XTER:HLG) Beneish M-Score : -4.12 (As of May. 31, 2024)

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What is Highlight Communications AG 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 -4.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XTER:HLG' s Beneish M-Score Range Over the Past 10 Years
Min: -4.51 Med: -3.35 Max: -2.46
Current: -4.12

During the past 13 years, the highest Beneish M-Score of Highlight Communications AG was -2.46. The lowest was -4.51. And the median was -3.35.

Highlight Communications AG Beneish M-Score Historical Data

The historical data trend for Highlight Communications AG'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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Highlight Communications AG Beneish M-Score Chart

Highlight Communications AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.15

-2.46

-2.89

-2.79

-4.12

Highlight Communications AG Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.89	-	-2.79	-4.12

Competitive Comparison of Highlight Communications AG's Beneish M-Score

For the Entertainment subindustry, Highlight Communications AG'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.

Highlight Communications AG's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Highlight Communications AG's Beneish M-Score distribution charts can be found below:

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

Highlight Communications AG 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 Highlight Communications AG 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 * 0.7753

0.528 * 0.8756

0.404 * 1.1912

0.892 * 0.8416

0.115 * 1.0289

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2371

4.679 * -0.25269

0.327 * 1.2711

-4.12

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €100.4 Mil.
Revenue was €446.7 Mil.
Gross Profit was €294.8 Mil.
Total Current Assets was €157.2 Mil.
Total Assets was €635.0 Mil.
Property, Plant and Equipment(Net PPE) was €49.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €67.1 Mil.
Selling, General, & Admin. Expense(SGA) was €34.9 Mil.
Total Current Liabilities was €406.9 Mil.
Long-Term Debt & Capital Lease Obligation was €30.3 Mil.
Net Income was €-11.3 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €149.2 Mil.

Total Receivables was €153.9 Mil.
Revenue was €530.8 Mil.
Gross Profit was €306.7 Mil.
Total Current Assets was €223.0 Mil.
Total Assets was €642.7 Mil.
Property, Plant and Equipment(Net PPE) was €56.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €80.8 Mil.
Selling, General, & Admin. Expense(SGA) was €33.5 Mil.
Total Current Liabilities was €314.1 Mil.
Long-Term Debt & Capital Lease Obligation was €34.1 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)
	=	(100.43 / 446.73)	/	(153.915 / 530.82)
	=	0.224811	/	0.289957
	=	0.7753

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)
	=	(306.746 / 530.82)	/	(294.82 / 446.73)
	=	0.577872	/	0.659951
	=	0.8756

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 - (157.15 + 49.842) / 634.957)	/	(1 - (223.037 + 56.006) / 642.69)
	=	0.674006	/	0.56582
	=	1.1912

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
	=	446.73	/	530.82
	=	0.8416

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))
	=	(80.762 / (80.762 + 56.006))	/	(67.138 / (67.138 + 49.842))
	=	0.590504	/	0.573927
	=	1.0289

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)
	=	(34.887 / 446.73)	/	(33.508 / 530.82)
	=	0.078094	/	0.063125
	=	1.2371

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)
	=	((30.319 + 406.908) / 634.957)	/	((34.083 + 314.087) / 642.69)
	=	0.688593	/	0.541739
	=	1.2711

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
	=	(-11.254 - 0	-	149.193)	/	634.957
	=	-0.25269

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.

Highlight Communications AG has a M-score of -4.12 suggests that the company is unlikely to be a manipulator.

Highlight Communications AG Beneish M-Score Related Terms

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Highlight Communications AG (XTER:HLG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Highlight Communications AG (XTER:HLG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HLG:Germany HLG:Germany

Address

Netzibodenstrasse 23b, Pratteln, CHE, 4133

Website

https://www.highlight-communications.ch

Highlight Communications AG is a Switzerland-based financial holding company. The company is a film production and license company in German-speaking countries. Its combined operating segments include Film, Sports, and Sports-and Event-Marketing. In the Film segment, the company along with its subsidiaries is a producer and distributor of cinema, video, and TV films. In addition to owning and co-producing, it acquires the exploitation rights to third-party productions. The sports segment mainly comprises activities in the TV and digital areas with the umbrella brand SPORT1 and in the area of production, content solutions services, and content marketing with PLAZAMEDIA. In the Sports- and Event-Marketing segment, the company is engaged in the marketing of international events.