Fresh Market (Fresh Market) Beneish M-Score : 0.00 (As of Apr. 25, 2024)

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What is Fresh Market 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.

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

During the past 9 years, the highest Beneish M-Score of Fresh Market was 0.00. The lowest was 0.00. And the median was 0.00.

Fresh Market Beneish M-Score Historical Data

The historical data trend for Fresh Market'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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Fresh Market Beneish M-Score Chart

Fresh Market Annual Data

Trend

Dec08

Dec09

Dec10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Beneish M-Score

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-1.63

-0.57

-3.14

-2.71

-3.22

Fresh Market Quarterly Data
	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-3.30	-3.01	-3.09	-3.22

Competitive Comparison of Fresh Market's Beneish M-Score

For the Grocery Stores subindustry, Fresh Market'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.

Fresh Market's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Fresh Market's Beneish M-Score distribution charts can be found below:

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

Fresh Market 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 Fresh Market 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 * 0.7237

0.528 * 0.9962

0.404 * 1.2153

0.892 * 1.0592

0.115 * 0.9577

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0258

4.679 * -0.139187

0.327 * 0.9863

-3.25

This Year (Jan16) TTM:

Last Year (Jan15) TTM:

Total Receivables was $10 Mil.
Revenue was 519.773 + 433.124 + 442.095 + 462.041 = $1,857 Mil.
Gross Profit was 178.67 + 144.018 + 148.997 + 160.558 = $632 Mil.
Total Current Assets was $147 Mil.
Total Assets was $582 Mil.
Property, Plant and Equipment(Net PPE) was $413 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General, & Admin. Expense(SGA) was $442 Mil.
Total Current Liabilities was $132 Mil.
Long-Term Debt & Capital Lease Obligation was $32 Mil.
Net Income was 22.869 + 9.991 + 17.472 + 15.166 = $65 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 41.004 + 28.111 + 14.795 + 62.611 = $147 Mil.

Total Receivables was $13 Mil.
Revenue was 480.487 + 419.45 + 422.227 + 431.002 = $1,753 Mil.
Gross Profit was 164.664 + 138.075 + 143.715 + 148.166 = $595 Mil.
Total Current Assets was $127 Mil.
Total Assets was $537 Mil.
Property, Plant and Equipment(Net PPE) was $392 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General, & Admin. Expense(SGA) was $406 Mil.
Total Current Liabilities was $120 Mil.
Long-Term Debt & Capital Lease Obligation was $33 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)
	=	(10.015 / 1857.033)	/	(13.064 / 1753.166)
	=	0.005393	/	0.007452
	=	0.7237

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)
	=	(594.62 / 1753.166)	/	(632.243 / 1857.033)
	=	0.339169	/	0.340459
	=	0.9962

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 - (146.754 + 413.069) / 582.118)	/	(1 - (127.42 + 392.194) / 536.523)
	=	0.0383	/	0.031516
	=	1.2153

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
	=	1857.033	/	1753.166
	=	1.0592

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))
	=	(62.163 / (62.163 + 392.194))	/	(68.844 / (68.844 + 413.069))
	=	0.136815	/	0.142856
	=	0.9577

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)
	=	(441.659 / 1857.033)	/	(406.452 / 1753.166)
	=	0.23783	/	0.231839
	=	1.0258

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)
	=	((32.285 + 132.052) / 582.118)	/	((33.337 + 120.233) / 536.523)
	=	0.282309	/	0.286232
	=	0.9863

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
	=	(65.498 - 0	-	146.521)	/	582.118
	=	-0.139187

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.

Fresh Market has a M-score of -3.25 suggests that the company is unlikely to be a manipulator.

Fresh Market Beneish M-Score Related Terms

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Fresh Market (Fresh Market) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Fresh Market Inc (NAS:TFM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.thefreshmarket.com

Fresh Market, Inc., is a Delaware corporation and it was founded in 1982. The Company is a specialty retailer focused on creating an extraordinary food shopping experience for its customers. It provides high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. As of January 26, 2014, the Company operates 151 stores in 26 states. It offers fresh, carefully selected, high-quality food products focused on perishable categories. Examples of its offerings include hand-trimmed steaks that are aged for tenderness, fresh seafood delivered up to six times per week, hand-stacked produce that is colorfully displayed and French-style baguettes baked in-store each morning. The Company's stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. The Company's distribution strategy is to capitalize on the capabilities of best-in-class third-party logistics providers and, as such, it does not own warehouses, distribution facilities or transportation equipment. The Company outsources substantially all of its logistics functions to third-party distributors and vendors. Its trademarks, including its registered The Fresh Market, Experience the Food and TFM trademarks are valuable assets that reinforce its customers' favorable perception of its stores. The Company's competition varies and includes national conventional supermarkets such as Kroger and Safeway, regional supermarkets such as Harris Teeter and Publix, national superstores such as Wal-Mart and Target, alternative food retailers such as Whole Foods and Trader Joe's, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company's stores are subject to various local, state, federal and international laws, regulations and administrative practices affecting its business.

Executives

Jane J. Thompson	director	628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Pamela K Kohn	officer: EVP-Chief Merchandising Ofcr.	3001 COLORADO BLVD, DENTON TX 76210
Jeffrey G Naylor	director
Bob Sasser	director	P.O. BOX 2500, NORFOLK VA 23501-2500
Michael Dennis Casey	director	1170 PEACHTREE STREE NE STE 900, ATLANTA GA 30309
Robert K Shearer	director	400 NORTH ELM STREET, GREENSBORO NC 27403
Michael D Tucci	director	COACH, 516 W 34TH STREET, NEW YORK NY 10001
Richard A Noll	director	1000 EAST HANES MILL ROAD, C/O HANESBRANDS INC., WINSTON SALEM NC 27105
Scott F. Duggan	officer: SVP General Counsel	C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Matt T Argano	officer: SVP - Human Resources	LL FLOORING HOLDINGS, INC., 4901 BAKERS MILL LANE, RICHMOND VA 23230
Steven B Tanger	director
Jeffrey C Ackerman	officer: EVP-CFO	7201 WEST FRIENDLY AVENUE, GREENSBORO NC 27410
David L Rea	director
Craig Carlock	director, officer: President/CEO	C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Lisa Klinger	other: Former officer	C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408