Alargan International Real Estate Co (KUW:ARGAN) Beneish M-Score : -2.02 (As of May. 27, 2024)

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What is Alargan International Real Estate Co 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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Alargan International Real Estate Co's Beneish M-Score or its related term are showing as below:

KUW:ARGAN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85 Med: -1.96 Max: 0.92
Current: -2.02

During the past 13 years, the highest Beneish M-Score of Alargan International Real Estate Co was 0.92. The lowest was -2.85. And the median was -1.96.

Alargan International Real Estate Co Beneish M-Score Historical Data

The historical data trend for Alargan International Real Estate Co'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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Alargan International Real Estate Co Beneish M-Score Chart

Alargan International Real Estate Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.46

-0.57

-2.73

-2.33

-1.82

Alargan International Real Estate Co 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															-2.28	-1.08	-1.70	-1.82	-2.02

Competitive Comparison of Alargan International Real Estate Co's Beneish M-Score

For the Real Estate Services subindustry, Alargan International Real Estate Co'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.

Alargan International Real Estate Co's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Alargan International Real Estate Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Alargan International Real Estate Co's Beneish M-Score falls into.

Alargan International Real Estate Co 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 Alargan International Real Estate Co 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 * 0.4489

0.528 * 0.3338

0.404 * 1.0124

0.892 * 2.3584

0.115 * 0.7548

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6147

4.679 * 0.012978

0.327 * 0.9978

-2.02

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD23.94 Mil.
Revenue was 5.756 + 25.109 + 6.069 + 4.592 = KWD41.53 Mil.
Gross Profit was 0.497 + 17.812 + 0.977 + 0.622 = KWD19.91 Mil.
Total Current Assets was KWD39.68 Mil.
Total Assets was KWD254.59 Mil.
Property, Plant and Equipment(Net PPE) was KWD7.21 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.79 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.60 Mil.
Total Current Liabilities was KWD36.65 Mil.
Long-Term Debt & Capital Lease Obligation was KWD130.94 Mil.
Net Income was -2.014 + 10.193 + -1.368 + -1.498 = KWD5.31 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 0.164 + 1.996 + 1.765 + -1.916 = KWD2.01 Mil.

Total Receivables was KWD22.61 Mil.
Revenue was 5.38 + 3.977 + 3.358 + 4.893 = KWD17.61 Mil.
Gross Profit was 1.133 + -1.034 + 0.513 + 2.206 = KWD2.82 Mil.
Total Current Assets was KWD39.26 Mil.
Total Assets was KWD237.59 Mil.
Property, Plant and Equipment(Net PPE) was KWD6.87 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.55 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.10 Mil.
Total Current Liabilities was KWD35.42 Mil.
Long-Term Debt & Capital Lease Obligation was KWD121.32 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)
	=	(23.941 / 41.526)	/	(22.612 / 17.608)
	=	0.57653	/	1.284189
	=	0.4489

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)
	=	(2.818 / 17.608)	/	(19.908 / 41.526)
	=	0.160041	/	0.47941
	=	0.3338

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 - (39.679 + 7.212) / 254.594)	/	(1 - (39.263 + 6.873) / 237.59)
	=	0.81582	/	0.805817
	=	1.0124

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
	=	41.526	/	17.608
	=	2.3584

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))
	=	(0.552 / (0.552 + 6.873))	/	(0.788 / (0.788 + 7.212))
	=	0.074343	/	0.0985
	=	0.7548

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)
	=	(1.599 / 41.526)	/	(1.103 / 17.608)
	=	0.038506	/	0.062642
	=	0.6147

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)
	=	((130.941 + 36.645) / 254.594)	/	((121.319 + 35.416) / 237.59)
	=	0.658248	/	0.659687
	=	0.9978

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
	=	(5.313 - 0	-	2.009)	/	254.594
	=	0.012978

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.

Alargan International Real Estate Co has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.

Alargan International Real Estate Co Beneish M-Score Related Terms

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Alargan International Real Estate Co (KUW:ARGAN) Business Description

Industry

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Traded in Other Exchanges

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Address

Free Trade Zone, Argan Business Park, P.O.Box 8904, Shuwaikh (Block F98), Kuwait City, KWT, 22060

Website

http://www.alargan.com

Alargan International Real Estate Co is a real estate company in Kuwait. Its activities are represented primarily in real estate investment activity, contracting activities and hotels and resorts activities. Its operating segments include Real estate investment, Contracting, Hotels, and resorts. The group primarily operates inside Kuwait and outside Kuwait which includes the Kingdom of Saudi Arabia, Kingdom of Bahrain, Arab Republic of Egypt, Sultanate of Oman, and the Republic of Lebanon. Geographically the company receives maximum revenue from inside Kuwait.

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