Grupo SimecB de CV (Grupo SimecB de CV) Beneish M-Score : -2.35 (As of May. 03, 2024)

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What is Grupo SimecB de CV 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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03 Med: -2.43 Max: -0.84
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Grupo SimecB de CV was -0.84. The lowest was -3.03. And the median was -2.43.

Grupo SimecB de CV Beneish M-Score Historical Data

The historical data trend for Grupo SimecB de CV'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.

Grupo SimecB de CV Beneish M-Score Chart

Grupo SimecB de CV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.92

-2.68

-2.37

-2.43

-2.08

Grupo SimecB de CV Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.38	-2.25	-2.06	-2.08	-2.35

Competitive Comparison of Grupo SimecB de CV's Beneish M-Score

For the Steel subindustry, Grupo SimecB de CV'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.

Grupo SimecB de CV's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Grupo SimecB de CV's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Grupo SimecB de CV's Beneish M-Score falls into.

Grupo SimecB de CV 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 Grupo SimecB de CV 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 * 1.2561

0.528 * 1.0226

0.404 * 0.9065

0.892 * 0.7961

0.115 * 1.123

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3385

4.679 * 0.028882

0.327 * 0.9061

-2.33

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $603 Mil.
Revenue was 475.135 + 519.337 + 542.772 + 590.392 = $2,128 Mil.
Gross Profit was 121.055 + 149.206 + 130.711 + 152.363 = $553 Mil.
Total Current Assets was $2,742 Mil.
Total Assets was $4,139 Mil.
Property, Plant and Equipment(Net PPE) was $1,094 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General, & Admin. Expense(SGA) was $139 Mil.
Total Current Liabilities was $814 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Net Income was 87.749 + 80.41 + 103.431 + 57.545 = $329 Mil.
Non Operating Income was -6.2 + -46.342 + 14.628 + -41.016 = $-79 Mil.
Cash Flow from Operations was 46.626 + 79.024 + 157.308 + 5.573 = $289 Mil.

Total Receivables was $603 Mil.
Revenue was 711.531 + 520.485 + 667.808 + 772.795 = $2,673 Mil.
Gross Profit was 177.916 + 138.819 + 157.203 + 236.825 = $711 Mil.
Total Current Assets was $2,507 Mil.
Total Assets was $3,765 Mil.
Property, Plant and Equipment(Net PPE) was $955 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General, & Admin. Expense(SGA) was $130 Mil.
Total Current Liabilities was $817 Mil.
Long-Term Debt & Capital Lease Obligation was $0 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)
	=	(602.817 / 2127.636)	/	(602.819 / 2672.619)
	=	0.283327	/	0.225554
	=	1.2561

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)
	=	(710.763 / 2672.619)	/	(553.335 / 2127.636)
	=	0.265943	/	0.26007
	=	1.0226

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 - (2742.394 + 1094.393) / 4138.74)	/	(1 - (2506.84 + 955.381) / 3765.257)
	=	0.072958	/	0.080482
	=	0.9065

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
	=	2127.636	/	2672.619
	=	0.7961

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))
	=	(57.629 / (57.629 + 955.381))	/	(58.397 / (58.397 + 1094.393))
	=	0.056889	/	0.050657
	=	1.123

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)
	=	(138.59 / 2127.636)	/	(130.061 / 2672.619)
	=	0.065138	/	0.048664
	=	1.3385

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 + 813.846) / 4138.74)	/	((0 + 817.135) / 3765.257)
	=	0.196641	/	0.21702
	=	0.9061

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
	=	(329.135 - -78.93	-	288.531)	/	4138.74
	=	0.028882

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.

Grupo SimecB de CV has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

Grupo SimecB de CV Beneish M-Score Related Terms

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Grupo SimecB de CV (Grupo SimecB de CV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Grupo Simec SAB de CV (AMEX:SIM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SIMECB:Mexico 4FV:Germany

Address

Calzada Lazaro Cardenas 601, Colonia La Nogalera, Guadalajara, JAL, MEX, 44440

Website

https://www.gsimec.com.mx

Grupo Simec SAB de CV is a diversified manufacturer, processor, and distributor of special bar quality, or SBQ, steel, and structural steel products. The United States, Brazil, and Mexico are the biggest markets for the company. The company's SBQ products are used across a broad range of engineered end-user applications, including axles, hubs, and crankshafts for automobiles and light trucks, machine tools, and off-highway equipment. The company's structural steel products are mainly used in the non-residential construction market and other construction applications.