PT Steel Pipe Industry of Indonesia Tbk (ISX:ISSP) Beneish M-Score : -3.24 (As of May. 17, 2024)

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What is PT Steel Pipe Industry of Indonesia Tbk 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 -3.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PT Steel Pipe Industry of Indonesia Tbk's Beneish M-Score or its related term are showing as below:

ISX:ISSP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24 Med: -2.34 Max: -1.13
Current: -3.24

During the past 12 years, the highest Beneish M-Score of PT Steel Pipe Industry of Indonesia Tbk was -1.13. The lowest was -3.24. And the median was -2.34.

PT Steel Pipe Industry of Indonesia Tbk Beneish M-Score Historical Data

The historical data trend for PT Steel Pipe Industry of Indonesia Tbk'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.

PT Steel Pipe Industry of Indonesia Tbk Beneish M-Score Chart

PT Steel Pipe Industry of Indonesia Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.46

-2.36

-2.45

-1.13

-2.75

PT Steel Pipe Industry of Indonesia Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.65	-1.70	-2.59	-2.75	-3.24

Competitive Comparison of PT Steel Pipe Industry of Indonesia Tbk's Beneish M-Score

For the Steel subindustry, PT Steel Pipe Industry of Indonesia Tbk'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.

PT Steel Pipe Industry of Indonesia Tbk's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, PT Steel Pipe Industry of Indonesia Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Steel Pipe Industry of Indonesia Tbk's Beneish M-Score falls into.

PT Steel Pipe Industry of Indonesia Tbk 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 PT Steel Pipe Industry of Indonesia Tbk 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 * 0.6988

0.528 * 0.6997

0.404 * 0.2953

0.892 * 1.0182

0.115 * 1.1668

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9302

4.679 * -0.023926

0.327 * 0.9378

-3.24

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was Rp925,214 Mil.
Revenue was 1373303 + 1677956 + 1678857 + 1360636 = Rp6,090,752 Mil.
Gross Profit was 257110 + 308574 + 291836 + 233028 = Rp1,090,548 Mil.
Total Current Assets was Rp4,987,322 Mil.
Total Assets was Rp7,891,331 Mil.
Property, Plant and Equipment(Net PPE) was Rp2,855,956 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp6,813 Mil.
Selling, General, & Admin. Expense(SGA) was Rp144,069 Mil.
Total Current Liabilities was Rp2,314,531 Mil.
Long-Term Debt & Capital Lease Obligation was Rp564,107 Mil.
Net Income was 108846 + 134331 + 160545 + 96212 = Rp499,934 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 479999 + 190570 + -211127 + 229298 = Rp688,740 Mil.

Total Receivables was Rp1,300,379 Mil.
Revenue was 1737880 + 1503962 + 1579166 + 1160894 = Rp5,981,902 Mil.
Gross Profit was 234749 + 124066 + 195102 + 195476 = Rp749,393 Mil.
Total Current Assets was Rp4,469,936 Mil.
Total Assets was Rp7,497,296 Mil.
Property, Plant and Equipment(Net PPE) was Rp2,872,781 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp7,999 Mil.
Selling, General, & Admin. Expense(SGA) was Rp152,117 Mil.
Total Current Liabilities was Rp2,594,955 Mil.
Long-Term Debt & Capital Lease Obligation was Rp321,383 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)
	=	(925214 / 6090752)	/	(1300379 / 5981902)
	=	0.151905	/	0.217386
	=	0.6988

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)
	=	(749393 / 5981902)	/	(1090548 / 6090752)
	=	0.125277	/	0.17905
	=	0.6997

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 - (4987322 + 2855956) / 7891331)	/	(1 - (4469936 + 2872781) / 7497296)
	=	0.006089	/	0.020618
	=	0.2953

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
	=	6090752	/	5981902
	=	1.0182

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))
	=	(7999 / (7999 + 2872781))	/	(6813 / (6813 + 2855956))
	=	0.002777	/	0.00238
	=	1.1668

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)
	=	(144069 / 6090752)	/	(152117 / 5981902)
	=	0.023654	/	0.02543
	=	0.9302

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)
	=	((564107 + 2314531) / 7891331)	/	((321383 + 2594955) / 7497296)
	=	0.364785	/	0.388985
	=	0.9378

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
	=	(499934 - 0	-	688740)	/	7891331
	=	-0.023926

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.

PT Steel Pipe Industry of Indonesia Tbk has a M-score of -3.24 suggests that the company is unlikely to be a manipulator.

PT Steel Pipe Industry of Indonesia Tbk Beneish M-Score Related Terms

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PT Steel Pipe Industry of Indonesia Tbk (ISX:ISSP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » PT Steel Pipe Industry of Indonesia Tbk (ISX:ISSP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

S08:Germany

Address

Jalan Kalibutuh No. 189-191, East Java, Surabaya, IDN, 60173

Website

https://www.spindo.com

PT Steel Pipe Industry of Indonesia Tbk is an Indonesia-based company engaged in manufacturing steel pipes. The company's products include black pipes, water pipes, mechanical pipes, furniture pipes, API pipes, steel poles, spiral pipes as well as industrial and ornament stainless steel pipes. The segments of the company are Steel Pipe Mill; Spiral Steel Pipe Mill, Strips and Plate and Services, and others. The company's products are used for furniture, water supply system, general construction, automotive components, oil and gas, mechanical structures, and chemical industries. Geographically all operations functioned through the regions of Indonesia.

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