Eni SpA (Eni SpA) Beneish M-Score

: -2.85 (As of Today)

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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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

E' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32 Med: -2.86 Max: 10.91
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Eni SpA was 10.91. The lowest was -3.32. And the median was -2.86.

Eni SpA Beneish M-Score Historical Data

The historical data trend for Eni 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.

* Premium members only.

Eni SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.87

-2.40

-2.42

-2.02

-2.85

Eni SpA Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.02	-2.38	-2.44	-2.45	-2.85

Competitive Comparison

For the Oil & Gas Integrated subindustry, Eni 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.

Eni SpA Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, Eni SpA's Beneish M-Score distribution charts can be found below:

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

Eni 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 Eni 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 * 1.1368

0.528 * 1.296

0.404 * 1.1633

0.892 * 0.7263

0.115 * 0.9769

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4647

4.679 * -0.081729

0.327 * 0.9425

-2.82

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $20,526 Mil.
Revenue was 26850.6 + 23819.637 + 21225.352 + 29105.996 = $101,002 Mil.
Gross Profit was 3110.142 + 3848.453 + 2802.817 + 3594.218 = $13,356 Mil.
Total Current Assets was $53,778 Mil.
Total Assets was $155,514 Mil.
Property, Plant and Equipment(Net PPE) was $66,666 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,065 Mil.
Selling, General, & Admin. Expense(SGA) was $3,383 Mil.
Total Current Liabilities was $41,353 Mil.
Long-Term Debt & Capital Lease Obligation was $28,270 Mil.
Net Income was 188.659 + 2044.824 + 318.527 + 2556.745 = $5,109 Mil.
Non Operating Income was -704.471 + 636.073 + 319.61 + 1252.677 = $1,504 Mil.
Cash Flow from Operations was 4552.89 + 3755.603 + 4813.651 + 3192.719 = $16,315 Mil.

Total Receivables was $24,860 Mil.
Revenue was 33395.127 + 36932.673 + 33357.294 + 35384.361 = $139,069 Mil.
Gross Profit was 1246.822 + 8106.931 + 6985.201 + 7494.493 = $23,833 Mil.
Total Current Assets was $65,531 Mil.
Total Assets was $161,155 Mil.
Property, Plant and Equipment(Net PPE) was $64,383 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,587 Mil.
Selling, General, & Admin. Expense(SGA) was $3,180 Mil.
Total Current Liabilities was $51,721 Mil.
Long-Term Debt & Capital Lease Obligation was $24,832 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)
	=	(20525.627 / 101001.585)	/	(24860.169 / 139069.455)
	=	0.203221	/	0.178761
	=	1.1368

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)
	=	(23833.447 / 139069.455)	/	(13355.63 / 101001.585)
	=	0.171378	/	0.132232
	=	1.296

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 - (53777.535 + 66666.303) / 155513.631)	/	(1 - (65530.72 + 64383.475) / 161154.661)
	=	0.225509	/	0.193854
	=	1.1633

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
	=	101001.585	/	139069.455
	=	0.7263

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))
	=	(7587.449 / (7587.449 + 64383.475))	/	(8064.728 / (8064.728 + 66666.303))
	=	0.105424	/	0.107917
	=	0.9769

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)
	=	(3383.366 / 101001.585)	/	(3180.475 / 139069.455)
	=	0.033498	/	0.02287
	=	1.4647

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)
	=	((28270.447 + 41353.326) / 155513.631)	/	((24831.568 + 51721.398) / 161154.661)
	=	0.447702	/	0.475028
	=	0.9425

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
	=	(5108.755 - 1503.889	-	16314.863)	/	155513.631
	=	-0.081729

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.

Eni SpA has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.

Eni SpA Beneish M-Score Related Terms

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Eni SpA (Eni SpA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Eni SpA (NYSE:E) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

EIPAF:USA ENI:Italy 0TD2:UK ENIm:UK 0N9S:UK ENI:Germany ENI:Germany ENI:Germany ENI1:Germany ENI:Germany ENI:Austria E:Argentina

Address

1, Piazzale Enrico Mattei, Rome, ITA, 00144

Website

https://www.eni.com

Eni is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, the company produced 0.8 million barrels of liquids and 4.5 billion cubic feet of natural gas per day. At end-2022, Eni held reserves of 6.6 billion barrels of oil equivalent, 48% of which are liquids. The Italian government owns a 30.1% stake in the company. Eni is placing its renewable and low-carbon business in a separate entity called Plentitude, which it will likely list publicly at some point.