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EMCOR Group Inc (NYSE:EME)
Beneish M-Score
-2.50 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

EMCOR Group Inc has a M-score of -2.50 suggests that the company is not a manipulator.

EME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Max: -0.99
Current: -2.5

-3.11
-0.99

During the past 13 years, the highest Beneish M-Score of EMCOR Group Inc was -0.99. The lowest was -3.11. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 EMCOR Group Inc 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 * 1.0277+0.528 * 1.0206+0.404 * 0.9449+0.892 * 1.0693+0.115 * 1.0148
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.96+4.679 * -0.0213-0.327 * 1.0176
=-2.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,352 Mil.
Revenue was 1744.97 + 1777.826 + 1699.128 + 1652.585 = $6,875 Mil.
Gross Profit was 223.108 + 252.621 + 235.402 + 239.527 = $951 Mil.
Total Current Assets was $1,981 Mil.
Total Assets was $3,450 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $662 Mil.
Total Current Liabilities was $1,320 Mil.
Long-Term Debt was $294 Mil.
Net Income was 34.348 + 51.066 + 41.522 + 46.849 = $174 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -37.161 + 171.085 + 101.647 + 11.755 = $247 Mil.
Accounts Receivable was $1,231 Mil.
Revenue was 1589.187 + 1714.796 + 1566.711 + 1558.055 = $6,429 Mil.
Gross Profit was 216.929 + 248.573 + 222.229 + 219.635 = $907 Mil.
Total Current Assets was $1,827 Mil.
Total Assets was $3,316 Mil.
Property, Plant and Equipment(Net PPE) was $118 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $645 Mil.
Total Current Liabilities was $1,213 Mil.
Long-Term Debt was $311 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(1352.416 / 6874.509) / (1230.581 / 6428.749)
=0.1967291 / 0.19141842
=1.0277

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)
=(252.621 / 6428.749) / (223.108 / 6874.509)
=0.14114192 / 0.1382874
=1.0206

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1980.927 + 121.825) / 3449.659) / (1 - (1827.293 + 118.274) / 3315.582)
=0.39044642 / 0.41320498
=0.9449

4. SGI = Sales Growth Index

Ratio of sales 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
=6874.509 / 6428.749
=1.0693

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(74.342 / (74.342 + 118.274)) / (74.768 / (74.768 + 121.825))
=0.38595963 / 0.38031873
=1.0148

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(662.384 / 6874.509) / (645.27 / 6428.749)
=0.09635365 / 0.10037256
=0.96

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((293.958 + 1319.752) / 3449.659) / ((311.302 + 1212.878) / 3315.582)
=0.46778827 / 0.4597021
=1.0176

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
=(173.785 - 0 - 247.326) / 3449.659
=-0.0213

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

EMCOR Group Inc has a M-score of -2.50 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

EMCOR Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.19551.00480.76890.92951.11790.99340.90991.02650.9721.0537
GMI 0.93760.95350.90740.87891.05831.07461.02911.00280.89731.0045
AQI 0.92891.65481.02541.00780.81451.29890.94051.33850.99940.9396
SGI 1.0651.18051.14480.81760.92311.09611.13061.01111.00121.0457
DEPI 1.13910.92870.92711.00631.03380.92821.00780.97240.9321.0017
SGAI 1.00910.95041.0121.16870.96910.94950.94951.05091.05861.0022
LVGI 0.98411.04630.93110.88281.16070.8520.94681.01121.00131.0237
TATA -0.0567-0.08-0.0498-0.0665-0.0592-0.0062-0.0122-0.0076-0.023-0.0266
M-score -2.55-2.46-2.82-3.07-2.80-2.22-2.49-2.36-2.69-2.54

EMCOR Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02650.98750.91550.95620.96990.98631.07531.03731.05591.0277
GMI 1.00280.98670.93440.9090.90080.91980.95470.98741.00061.0206
AQI 1.33851.32391.36420.99980.99941.00290.97180.96140.93960.9449
SGI 1.01111.01121.01671.00331.00340.9971.01141.04211.04351.0693
DEPI 0.97240.94550.91560.88670.9320.95270.98790.98851.00171.0148
SGAI 1.05091.05461.0661.06941.05991.08321.06311.02281.0010.96
LVGI 1.01121.02020.98060.94461.00131.02181.0431.01361.02371.0176
TATA -0.0076-0.0252-0.0259-0.0055-0.023-0.028-0.0099-0.02-0.0266-0.0213
M-score -2.36-2.50-2.57-2.60-2.68-2.69-2.51-2.53-2.55-2.50
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