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Canaf Investments (Canaf Investments) Beneish M-Score : -1.62 (As of May. 26, 2024)


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What is Canaf Investments 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.

Warning Sign:

Beneish M-Score -1.62 higher than -1.78, which implies that the company might have manipulated its financial results.

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

CAFZF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.67   Med: -2.65   Max: -1.62
Current: -1.62

During the past 13 years, the highest Beneish M-Score of Canaf Investments was -1.62. The lowest was -4.67. And the median was -2.65.


Canaf Investments Beneish M-Score Historical Data

The historical data trend for Canaf Investments'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.

Canaf Investments Beneish M-Score Chart

Canaf Investments Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.75 -4.24 -2.98 -2.41 -2.18

Canaf Investments Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 - -1.83 -3.40 -2.18 -1.62

Competitive Comparison of Canaf Investments's Beneish M-Score

For the Coking Coal subindustry, Canaf Investments'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.


Canaf Investments's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Canaf Investments's Beneish M-Score distribution charts can be found below:

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



Canaf Investments 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 Canaf Investments 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 * 1.1375+0.528 * 1+0.404 * 0.717+0.892 * 1.348+0.115 * 2.878
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8528+4.679 * 0.064733-0.327 * 1.1409
=-1.66

* 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 (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was $2.99 Mil.
Revenue was 7.164 + 7.976 + 6.369 + 4.772 = $26.28 Mil.
Gross Profit was 0.516 + 1.047 + 0.689 + 0.673 = $2.93 Mil.
Total Current Assets was $9.08 Mil.
Total Assets was $10.86 Mil.
Property, Plant and Equipment(Net PPE) was $0.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General, & Admin. Expense(SGA) was $0.68 Mil.
Total Current Liabilities was $3.20 Mil.
Long-Term Debt & Capital Lease Obligation was $0.02 Mil.
Net Income was 0.33 + 0.624 + 0.491 + 0.303 = $1.75 Mil.
Non Operating Income was 0.001 + 0.013 + 0.007 + -0.004 = $0.02 Mil.
Cash Flow from Operations was 0.989 + -0.348 + 1.609 + -1.222 = $1.03 Mil.
Total Receivables was $1.95 Mil.
Revenue was 4.873 + 5.602 + 5.407 + 3.615 = $19.50 Mil.
Gross Profit was 0.516 + 0.627 + 0.797 + 0.23 = $2.17 Mil.
Total Current Assets was $6.17 Mil.
Total Assets was $8.20 Mil.
Property, Plant and Equipment(Net PPE) was $0.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.17 Mil.
Selling, General, & Admin. Expense(SGA) was $0.60 Mil.
Total Current Liabilities was $2.10 Mil.
Long-Term Debt & Capital Lease Obligation was $0.03 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)
=(2.99 / 26.281) / (1.95 / 19.497)
=0.11377 / 0.100015
=1.1375

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)
=(2.17 / 19.497) / (2.925 / 26.281)
=0.111299 / 0.111297
=1

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 - (9.081 + 0.409) / 10.86) / (1 - (6.172 + 0.582) / 8.196)
=0.126151 / 0.175939
=0.717

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
=26.281 / 19.497
=1.348

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))
=(0.165 / (0.165 + 0.582)) / (0.034 / (0.034 + 0.409))
=0.220884 / 0.076749
=2.878

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)
=(0.684 / 26.281) / (0.595 / 19.497)
=0.026026 / 0.030518
=0.8528

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)
=((0.017 + 3.2) / 10.86) / ((0.031 + 2.097) / 8.196)
=0.296225 / 0.259639
=1.1409

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
=(1.748 - 0.017 - 1.028) / 10.86
=0.064733

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.

Canaf Investments has a M-score of -1.66 signals that the company is likely to be a manipulator.


Canaf Investments Beneish M-Score Related Terms

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Canaf Investments (Canaf Investments) Business Description

Traded in Other Exchanges
Address
1111 Melville Street, Suite 1100, Vancouver, BC, CAN, V6E 3V6
Canaf Investments Inc is a Canadian company that owns and operates a coal processing plant in South Africa that processes coal and coal products into calcine, a coke substitute with high carbon content. The company, through its subsidiaries, produces calcined anthracite used in the manufacturing process of steel and manganese. The company operates in two reportable segments are Canada and South Africa, out of which the majority of revenue comes from South Africa.

Canaf Investments (Canaf Investments) Headlines

From GuruFocus

Canaf announces full repayment of term loan and award of B-BBEE rating

By GlobeNewswire GlobeNewswire 01-21-2019