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EMCOR Group Inc (NYSE:EME)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

EME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Max: -1.01
Current: -2.53

-3.11
-1.01

During the past 13 years, the highest Beneish M-Score of EMCOR Group Inc was -1.01. 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 * 1.0373+0.528 * 0.9874+0.404 * 0.9614+0.892 * 1.0421+0.115 * 0.9885
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0228+4.679 * -0.02-0.327 * 1.0136
=-2.53

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,334 Mil.
Revenue was 1699.128 + 1652.585 + 1589.187 + 1714.796 = $6,656 Mil.
Gross Profit was 235.402 + 239.527 + 216.929 + 248.573 = $940 Mil.
Total Current Assets was $2,015 Mil.
Total Assets was $3,483 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $660 Mil.
Total Current Liabilities was $1,309 Mil.
Long-Term Debt was $303 Mil.
Net Income was 41.522 + 46.849 + 32.849 + 42.466 = $164 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 101.647 + 11.755 + -17.821 + 137.663 = $233 Mil.
Accounts Receivable was $1,234 Mil.
Revenue was 1566.711 + 1558.055 + 1599.385 + 1662.937 = $6,387 Mil.
Gross Profit was 222.229 + 219.635 + 215.211 + 234.075 = $891 Mil.
Total Current Assets was $1,927 Mil.
Total Assets was $3,435 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General & Admin. Expense(SGA) was $620 Mil.
Total Current Liabilities was $1,247 Mil.
Long-Term Debt was $321 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)
=(1333.823 / 6655.696) / (1233.916 / 6387.088)
=0.20040323 / 0.19318913
=1.0373

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)
=(239.527 / 6387.088) / (235.402 / 6655.696)
=0.13952368 / 0.14129717
=0.9874

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 - (2015.146 + 117.039) / 3483.429) / (1 - (1926.67 + 122.24) / 3434.667)
=0.38790628 / 0.40346182
=0.9614

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
=6655.696 / 6387.088
=1.0421

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))
=(75.822 / (75.822 + 122.24)) / (73.979 / (73.979 + 117.039))
=0.38281952 / 0.38728811
=0.9885

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)
=(660.352 / 6655.696) / (619.58 / 6387.088)
=0.09921607 / 0.09700508
=1.0228

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)
=((303.04 + 1309.23) / 3483.429) / ((321.222 + 1247.13) / 3434.667)
=0.46283992 / 0.45662418
=1.0136

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
=(163.686 - 0 - 233.244) / 3483.429
=-0.02

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 -2.53 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.99711.1930.98090.76890.92951.11790.99340.90991.02650.972
GMI 0.89280.93730.95040.90740.87891.05831.07461.02911.00280.8973
AQI 1.04250.92891.65481.02541.00780.81451.29890.94051.33850.9994
SGI 0.97761.06721.20921.14480.81760.92311.09611.13061.01111.0012
DEPI 0.92051.13910.92870.92711.00631.03380.92821.00780.97240.932
SGAI 1.05731.00650.94691.0121.16870.96910.94950.94951.05091.0586
LVGI 0.91920.98411.04630.93110.88281.16070.8520.94681.01121.0013
TATA -0.0442-0.0601-0.0814-0.0504-0.0665-0.0592-0.0062-0.0122-0.0076-0.023
M-score -2.74-2.57-2.47-2.83-3.07-2.80-2.22-2.49-2.36-2.69

EMCOR Group Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.04630.99421.02650.98750.91550.95620.96990.98631.07531.0373
GMI 1.00010.99891.00280.98670.93440.9090.90080.91980.95470.9874
AQI 0.92661.29551.33851.32391.36420.99980.99941.00290.97180.9614
SGI 1.0351.01811.01111.01121.01671.00331.00340.9971.01141.0421
DEPI 0.98851.00070.97240.94550.91560.88670.9320.95270.98790.9885
SGAI 0.98421.02261.05091.05461.0661.06941.05991.08321.06311.0228
LVGI 0.96771.03041.01121.02020.98060.94461.00131.02181.0431.0136
TATA -0.0021-0.0246-0.0076-0.0252-0.0259-0.0055-0.023-0.028-0.0099-0.02
M-score -2.43-2.48-2.36-2.50-2.57-2.60-2.68-2.69-2.51-2.53
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