Tung Ho Steel Enterprise (LUX:TNGHS) Beneish M-Score : -2.41 (As of May. 04, 2024)

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What is Tung Ho Steel Enterprise 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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tung Ho Steel Enterprise's Beneish M-Score or its related term are showing as below:

LUX:TNGHS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38 Med: -2.54 Max: -1.69
Current: -2.41

During the past 13 years, the highest Beneish M-Score of Tung Ho Steel Enterprise was -1.69. The lowest was -3.38. And the median was -2.54.

Tung Ho Steel Enterprise Beneish M-Score Historical Data

The historical data trend for Tung Ho Steel Enterprise'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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Tung Ho Steel Enterprise Beneish M-Score Chart

Tung Ho Steel Enterprise Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.42

-3.38

-1.69

-2.67

-2.35

Tung Ho Steel Enterprise 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															-2.65	-2.64	-2.66	-2.35	-2.41

Competitive Comparison of Tung Ho Steel Enterprise's Beneish M-Score

For the Steel subindustry, Tung Ho Steel Enterprise'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.

Tung Ho Steel Enterprise's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Tung Ho Steel Enterprise's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tung Ho Steel Enterprise's Beneish M-Score falls into.

Tung Ho Steel Enterprise 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 Tung Ho Steel Enterprise 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 * 0.9835

0.528 * 0.9286

0.404 * 0.978

0.892 * 1.0479

0.115 * 0.9452

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0803

4.679 * 0.013984

0.327 * 0.9656

-2.44

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $269 Mil.
Revenue was 468.45 + 528.299 + 479.933 + 512.763 = $1,989 Mil.
Gross Profit was 64.182 + 79.104 + 66.203 + 66.539 = $276 Mil.
Total Current Assets was $1,029 Mil.
Total Assets was $1,788 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General, & Admin. Expense(SGA) was $86 Mil.
Total Current Liabilities was $810 Mil.
Long-Term Debt & Capital Lease Obligation was $37 Mil.
Net Income was 34.647 + 43.019 + 36.301 + 35.24 = $149 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 35.581 + 35.647 + 55.387 + -2.416 = $124 Mil.

Total Receivables was $261 Mil.
Revenue was 439.201 + 452.047 + 459.123 + 548.129 = $1,899 Mil.
Gross Profit was 65.973 + 61.36 + 39.075 + 78.203 = $245 Mil.
Total Current Assets was $998 Mil.
Total Assets was $1,808 Mil.
Property, Plant and Equipment(Net PPE) was $660 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General, & Admin. Expense(SGA) was $76 Mil.
Total Current Liabilities was $850 Mil.
Long-Term Debt & Capital Lease Obligation was $37 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)
	=	(269.293 / 1989.445)	/	(261.288 / 1898.5)
	=	0.135361	/	0.137629
	=	0.9835

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)
	=	(244.611 / 1898.5)	/	(276.028 / 1989.445)
	=	0.128844	/	0.138746
	=	0.9286

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 - (1029.141 + 614.483) / 1788.371)	/	(1 - (997.975 + 660.258) / 1807.84)
	=	0.080938	/	0.082755
	=	0.978

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
	=	1989.445	/	1898.5
	=	1.0479

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))
	=	(51.711 / (51.711 + 660.258))	/	(51.15 / (51.15 + 614.483))
	=	0.072631	/	0.076844
	=	0.9452

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)
	=	(86.104 / 1989.445)	/	(76.06 / 1898.5)
	=	0.04328	/	0.040063
	=	1.0803

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)
	=	((37.449 + 809.601) / 1788.371)	/	((37.075 + 849.686) / 1807.84)
	=	0.473643	/	0.490509
	=	0.9656

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
	=	(149.207 - 0	-	124.199)	/	1788.371
	=	0.013984

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.

Tung Ho Steel Enterprise has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.

Tung Ho Steel Enterprise Beneish M-Score Related Terms

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Tung Ho Steel Enterprise (LUX:TNGHS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tung Ho Steel Enterprise Corp (LUX:TNGHS) » Definitions » Beneish M-Score

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Traded in Other Exchanges

2006:Taiwan

Address

Chang-an East Road, 6th Floor, No. 9, Section 1, Taipei, TWN, 10441

Website

https://www.tunghosteel.com

Tung Ho Steel Enterprise Corp is a Taiwan-based company that is primarily engaged in the manufacturing and distribution of steel products. The company's product portfolio includes rebar, which is primarily applied in building projects, including high-rises, factories, public construction, and social welfare initiatives; steel section, which is used in buildings (steel structures) and other construction projects (bridges, ships, vehicles, and so on); and steel plate, which is broadly utilized in factories, logistics warehouses, office and residential buildings, bridges, and other buildings. Rebar and steel section account for the majority of the company's revenue. The company generates most of its sales from the Taiwan domestic market.

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