National Industries Group HoldingK (DFM:NIND) Beneish M-Score : -1.95 (As of May. 04, 2024)

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What is National Industries Group HoldingK 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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for National Industries Group HoldingK's Beneish M-Score or its related term are showing as below:

DFM:NIND' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.35 Max: -1.95
Current: -1.95

During the past 13 years, the highest Beneish M-Score of National Industries Group HoldingK was -1.95. The lowest was -3.07. And the median was -2.35.

National Industries Group HoldingK Beneish M-Score Historical Data

The historical data trend for National Industries Group HoldingK'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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National Industries Group HoldingK Beneish M-Score Chart

National Industries Group HoldingK Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.40

-2.88

-2.40

-2.16

-1.95

National Industries Group HoldingK Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.16	-1.43	-2.06	-1.84	-1.95

Competitive Comparison of National Industries Group HoldingK's Beneish M-Score

For the Conglomerates subindustry, National Industries Group HoldingK'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.

National Industries Group HoldingK's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, National Industries Group HoldingK's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where National Industries Group HoldingK's Beneish M-Score falls into.

National Industries Group HoldingK 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 National Industries Group HoldingK 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 * 1.4196

0.528 * 0.9194

0.404 * 0.9637

0.892 * 1.1707

0.115 * 0.8873

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0008

4.679 * 0.016062

0.327 * 1.0291

-1.95

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ1,061 Mil.
Revenue was 467.547 + 441.102 + 414.718 + 469.853 = د.إ1,793 Mil.
Gross Profit was 127.632 + 95.201 + 78.627 + 104.283 = د.إ406 Mil.
Total Current Assets was د.إ4,030 Mil.
Total Assets was د.إ17,939 Mil.
Property, Plant and Equipment(Net PPE) was د.إ1,473 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ157 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ516 Mil.
Total Current Liabilities was د.إ4,411 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ5,123 Mil.
Net Income was 97.233 + 38.836 + -28.619 + 189.805 = د.إ297 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 23.696 + -70.884 + 151.017 + -94.723 = د.إ9 Mil.

Total Receivables was د.إ638 Mil.
Revenue was 462.504 + 335.015 + 375.428 + 358.842 = د.إ1,532 Mil.
Gross Profit was 108.143 + 60.703 + 78.783 + 71.04 = د.إ319 Mil.
Total Current Assets was د.إ3,496 Mil.
Total Assets was د.إ16,547 Mil.
Property, Plant and Equipment(Net PPE) was د.إ1,147 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ107 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ440 Mil.
Total Current Liabilities was د.إ4,110 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ4,435 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)
	=	(1061.1 / 1793.22)	/	(638.484 / 1531.789)
	=	0.591729	/	0.416822
	=	1.4196

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)
	=	(318.669 / 1531.789)	/	(405.743 / 1793.22)
	=	0.208037	/	0.226265
	=	0.9194

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 - (4030.338 + 1472.735) / 17939.416)	/	(1 - (3496.209 + 1147.423) / 16547.101)
	=	0.693241	/	0.719369
	=	0.9637

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
	=	1793.22	/	1531.789
	=	1.1707

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))
	=	(107.126 / (107.126 + 1147.423))	/	(156.813 / (156.813 + 1472.735))
	=	0.08539	/	0.096231
	=	0.8873

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)
	=	(516.025 / 1793.22)	/	(440.446 / 1531.789)
	=	0.287764	/	0.287537
	=	1.0008

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)
	=	((5122.961 + 4410.51) / 17939.416)	/	((4434.553 + 4110.268) / 16547.101)
	=	0.531426	/	0.516394
	=	1.0291

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
	=	(297.255 - 0	-	9.106)	/	17939.416
	=	0.016062

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.

National Industries Group HoldingK has a M-score of -1.95 suggests that the company is unlikely to be a manipulator.

National Industries Group HoldingK Beneish M-Score Related Terms

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National Industries Group HoldingK (DFM:NIND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » National Industries Group Holding SAK (DFM:NIND) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NIND:Kuwait

Address

Shuwaikh - Jahra Road Interchange, P.O. Box 417, Beside kuwait Red Cresent Society, Safat, Kuwait City, KWT, 13005

Website

http://www.nig.com.kw

National Industries Group Holding SAK operates in investment and shares, building materials, petrochemicals, oil and gas services, mechanical industries, utilities, real estate infrastructure and financial services. The company has four segments: Investments, Building materials, Specialist engineering and chemical and Hotel and IT services. Geographically, it generates majority revenue from the Kuwait region.

National Industries Group HoldingK (DFM:NIND) Headlines

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