SG Co SpA (MIL:SGC) Beneish M-Score : -2.19 (As of May. 21, 2024)

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What is SG Co SpA 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:SGC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28 Med: -2.29 Max: 3.3
Current: -2.19

During the past 8 years, the highest Beneish M-Score of SG Co SpA was 3.30. The lowest was -3.28. And the median was -2.29.

SG Co SpA Beneish M-Score Historical Data

The historical data trend for SG Co SpA'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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SG Co SpA Beneish M-Score Chart

SG Co SpA Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.28

3.30

-2.55

1.87

-2.19

SG Co SpA Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial										-2.55	-	1.87	-	-2.19

Competitive Comparison of SG Co SpA's Beneish M-Score

For the Specialty Business Services subindustry, SG Co SpA'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.

SG Co SpA's Beneish M-Score Distribution in the Business Services Industry

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

* The bar in red indicates where SG Co SpA's Beneish M-Score falls into.

SG Co SpA 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 SG Co SpA 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 * 1.345

0.528 * 0.9398

0.404 * 1.1716

0.892 * 1.6784

0.115 * 0.3017

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.118402

0.327 * 1.1127

-2.19

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €8.06 Mil.
Revenue was €29.70 Mil.
Gross Profit was €6.38 Mil.
Total Current Assets was €15.46 Mil.
Total Assets was €25.71 Mil.
Property, Plant and Equipment(Net PPE) was €0.69 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.02 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €14.75 Mil.
Long-Term Debt & Capital Lease Obligation was €5.22 Mil.
Net Income was €0.33 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €3.37 Mil.

Total Receivables was €3.57 Mil.
Revenue was €17.70 Mil.
Gross Profit was €3.57 Mil.
Total Current Assets was €8.82 Mil.
Total Assets was €13.27 Mil.
Property, Plant and Equipment(Net PPE) was €0.23 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €5.37 Mil.
Long-Term Debt & Capital Lease Obligation was €3.89 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)
	=	(8.064 / 29.7)	/	(3.572 / 17.695)
	=	0.271515	/	0.201865
	=	1.345

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)
	=	(3.573 / 17.695)	/	(6.381 / 29.7)
	=	0.201921	/	0.214848
	=	0.9398

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 - (15.457 + 0.692) / 25.709)	/	(1 - (8.823 + 0.234) / 13.268)
	=	0.371854	/	0.31738
	=	1.1716

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
	=	29.7	/	17.695
	=	1.6784

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))
	=	(0.002 / (0.002 + 0.234))	/	(0.02 / (0.02 + 0.692))
	=	0.008475	/	0.02809
	=	0.3017

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 / 29.7)	/	(0 / 17.695)
	=	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)
	=	((5.217 + 14.745) / 25.709)	/	((3.894 + 5.365) / 13.268)
	=	0.77646	/	0.697844
	=	1.1127

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
	=	(0.33 - 0	-	3.374)	/	25.709
	=	-0.118402

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.

SG Co SpA has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.

SG Co SpA Beneish M-Score Related Terms

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SG Co SpA (MIL:SGC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SG Co SpA (MIL:SGC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Piazza Guglielmo Oberdan 2/a, Milan, ITA, 20129

Website

http://www.sg-company.it

SG Co SpA is a business service provider. The company provides offers services in the communication industry which include live and digital communication. The group enables event production M.I.C.E. (meetings, incentives, conferences, and exhibitions), corporate e-digital advertising, video and audio production, motion graphic e-sound design, shopper, and brand activation, and street and customer marketing.