Lender Processing Services, (FRA:L30) Beneish M-Score : 0.00 (As of May. 04, 2024)

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What is Lender Processing Services, 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.

The historical rank and industry rank for Lender Processing Services,'s Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Lender Processing Services, was 0.00. The lowest was 0.00. And the median was 0.00.

Lender Processing Services, Beneish M-Score Historical Data

The historical data trend for Lender Processing Services,'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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Lender Processing Services, Beneish M-Score Chart

Lender Processing Services, Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Beneish M-Score

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-3.08

-2.70

-3.16

-3.43

Lender Processing Services, Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Beneish M-Score	Get a 7-Day Free Trial															-3.54	-3.43	-3.21	-2.65	-2.73

Competitive Comparison of Lender Processing Services,'s Beneish M-Score

For the Specialty Business Services subindustry, Lender Processing Services,'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.

Lender Processing Services,'s Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Lender Processing Services,'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lender Processing Services,'s Beneish M-Score falls into.

Lender Processing Services, 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 Lender Processing Services, 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 * 0.7785

0.528 * 1.0293

0.404 * 0.8594

0.892 * 0.951

0.115 * 2.2039

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.448

4.679 * -0.05315

0.327 * 0.9216

-2.76

This Year (Sep13) TTM:

Last Year (Sep12) TTM:

Total Receivables was €179 Mil.
Revenue was 313.398 + 355.411 + 364.122 + 381.784 = €1,415 Mil.
Gross Profit was 76.339 + 94.78 + 96.888 + 103.23 = €371 Mil.
Total Current Assets was €425 Mil.
Total Assets was €1,775 Mil.
Property, Plant and Equipment(Net PPE) was €295 Mil.
Depreciation, Depletion and Amortization(DDA) was €79 Mil.
Selling, General, & Admin. Expense(SGA) was €74 Mil.
Total Current Liabilities was €337 Mil.
Long-Term Debt & Capital Lease Obligation was €769 Mil.
Net Income was 26.539 + 14.466 + 41.634 + 2.144 = €85 Mil.
Non Operating Income was -0.059 + 0.214 + 0.007 + 0.016 = €0 Mil.
Cash Flow from Operations was 75.644 + 78.845 + -75.302 + 99.74 = €179 Mil.

Total Receivables was €242 Mil.
Revenue was 386.022 + 409.161 + 367.746 + 324.636 = €1,488 Mil.
Gross Profit was 105.614 + 114.66 + 88.66 + 92.844 = €402 Mil.
Total Current Assets was €480 Mil.
Total Assets was €1,839 Mil.
Property, Plant and Equipment(Net PPE) was €87 Mil.
Depreciation, Depletion and Amortization(DDA) was €76 Mil.
Selling, General, & Admin. Expense(SGA) was €175 Mil.
Total Current Liabilities was €409 Mil.
Long-Term Debt & Capital Lease Obligation was €834 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)
	=	(179.27 / 1414.715)	/	(242.121 / 1487.565)
	=	0.126718	/	0.162763
	=	0.7785

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)
	=	(401.778 / 1487.565)	/	(371.237 / 1414.715)
	=	0.270091	/	0.262411
	=	1.0293

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 - (424.998 + 294.903) / 1774.649)	/	(1 - (479.805 + 87.271) / 1838.754)
	=	0.594342	/	0.691598
	=	0.8594

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
	=	1414.715	/	1487.565
	=	0.951

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))
	=	(76.052 / (76.052 + 87.271))	/	(79.003 / (79.003 + 294.903))
	=	0.465654	/	0.211291
	=	2.2039

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)
	=	(74.472 / 1414.715)	/	(174.795 / 1487.565)
	=	0.052641	/	0.117504
	=	0.448

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)
	=	((768.944 + 336.772) / 1774.649)	/	((833.812 + 409.349) / 1838.754)
	=	0.623062	/	0.676089
	=	0.9216

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
	=	(84.783 - 0.178	-	178.927)	/	1774.649
	=	-0.05315

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.

Lender Processing Services, has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Lender Processing Services, Beneish M-Score Related Terms

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Lender Processing Services, (FRA:L30) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Lender Processing Services, Inc. (FRA:L30) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.lpsvcs.com

Lender Processing Services, Inc. was formed as a Delaware corporation in December 2007. The Company is a provider of integrated technology, data and services to the mortgage lending industry in mortgage processing in the U.S. It has two reporting segments, Technology, Data and Analytics and Loan Transaction Services. Its Technology, Data and Analytics segment offers software systems and information solutions that facilitate and automate many of the business across the life cycle of a mortgage. The primary applications and services for Company's technology businesses include servicing technology, default technology, origination technology, and its data and analytics services include alternative valuation services and data and information. The Company's Transaction Services segment offers customized outsourced business process and information solutions. The primary application and services of its origination services businesses include Settlement and title agency services, appraisal services, other origination services. The Company's default management services include: foreclosure management services, including access to a nationwide network of independent attorneys, document preparation and recording and other services; property inspection and preservation services, designed to preserve the value of properties securing defaulted loans; and asset management services, providing disposition services for its customers' real estate owned properties through a network of independent real estate brokers, attorneys and other vendors to facilitate the transaction. Corporate overhead costs and other operations that are not included in its operating segments are included in Corporate and Other.

Lender Processing Services, (FRA:L30) Headlines

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