Foschini Group (JSE:TFG) Beneish M-Score : -2.34 (As of May. 22, 2024)

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What is Foschini Group 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:TFG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78 Med: -2.46 Max: 2.07
Current: -2.34

During the past 13 years, the highest Beneish M-Score of Foschini Group was 2.07. The lowest was -3.78. And the median was -2.46.

Foschini Group Beneish M-Score Historical Data

The historical data trend for Foschini Group'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.

Foschini Group Beneish M-Score Chart

Foschini Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.68

-2.58

-3.78

-2.76

-2.34

Foschini Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.76	-	-2.34	-

Competitive Comparison of Foschini Group's Beneish M-Score

For the Specialty Retail subindustry, Foschini Group'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.

Foschini Group's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Foschini Group's Beneish M-Score distribution charts can be found below:

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

Foschini Group 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 Foschini Group 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 * 0.9281

0.528 * 1.0115

0.404 * 1.0988

0.892 * 1.1939

0.115 * 1.127

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.001695

0.327 * 1.0637

-2.34

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was R9,072 Mil.
Revenue was R51,778 Mil.
Gross Profit was R24,819 Mil.
Total Current Assets was R26,866 Mil.
Total Assets was R53,104 Mil.
Property, Plant and Equipment(Net PPE) was R14,936 Mil.
Depreciation, Depletion and Amortization(DDA) was R5,064 Mil.
Selling, General, & Admin. Expense(SGA) was R0 Mil.
Total Current Liabilities was R16,845 Mil.
Long-Term Debt & Capital Lease Obligation was R13,257 Mil.
Net Income was R3,026 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R3,116 Mil.

Total Receivables was R8,187 Mil.
Revenue was R43,370 Mil.
Gross Profit was R21,027 Mil.
Total Current Assets was R24,070 Mil.
Total Assets was R43,313 Mil.
Property, Plant and Equipment(Net PPE) was R10,853 Mil.
Depreciation, Depletion and Amortization(DDA) was R4,334 Mil.
Selling, General, & Admin. Expense(SGA) was R0 Mil.
Total Current Liabilities was R13,782 Mil.
Long-Term Debt & Capital Lease Obligation was R9,300 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)
	=	(9071.7 / 51778.1)	/	(8186.9 / 43370.3)
	=	0.175203	/	0.188767
	=	0.9281

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)
	=	(21026.8 / 43370.3)	/	(24818.5 / 51778.1)
	=	0.48482	/	0.479324
	=	1.0115

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 - (26865.7 + 14936) / 53104.1)	/	(1 - (24069.8 + 10853.4) / 43312.7)
	=	0.212835	/	0.193696
	=	1.0988

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
	=	51778.1	/	43370.3
	=	1.1939

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))
	=	(4334.1 / (4334.1 + 10853.4))	/	(5064.1 / (5064.1 + 14936))
	=	0.285373	/	0.253204
	=	1.127

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)
	=	(0 / 51778.1)	/	(0 / 43370.3)
	=	0	/	0
	=	1

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)
	=	((13256.5 + 16845.3) / 53104.1)	/	((9299.5 + 13781.7) / 43312.7)
	=	0.566845	/	0.532897
	=	1.0637

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
	=	(3025.8 - 0	-	3115.8)	/	53104.1
	=	-0.001695

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.

Foschini Group has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

Foschini Group Beneish M-Score Related Terms

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Foschini Group (JSE:TFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Foschini Group Ltd (JSE:TFG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

FHNGY:USA

Address

340 Voortrekker Road, Stanley Lewis Centre, Parow East, Cape Town, WC, ZAF, 7500

Website

https://www.tfglimited.co.za

Foschini Group Ltd is a South African fashion retailer. The company offers ladieswear, footwear, accessories, cosmetics and fragrances, kidswear, homewares, sportswear, cellular and jewelry mainly in South Africa, as well as financial services. The Foschini Group portfolio consists of multiple brands, including @home, @homelivingpace, American Swiss, Sterns, Charles and Keith, Colette, DonnaClaire, Phase Eight, Soda Bloc, Duesouth, Exact, Fabiani, The Fix, Foschini, G-star Raw, hi, Markham, Mat and May, and Whistles. The Group consists of four operating segments: TFG Africa retail division, TFG London, TFG Australia, and Credit.