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SJW Group (SJW Group) Beneish M-Score

: -2.48 (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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SJW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76   Med: -2.58   Max: -1.06
Current: -2.48

During the past 13 years, the highest Beneish M-Score of SJW Group was -1.06. The lowest was -2.76. And the median was -2.58.


SJW Group Beneish M-Score Historical Data

The historical data trend for SJW Group'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.

SJW Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.06 -2.40 -2.60 -2.56 -2.48

SJW Group 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.64 -2.62 -2.54 -2.48

Competitive Comparison

For the Utilities - Regulated Water subindustry, SJW Group'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.


SJW Group Beneish M-Score Distribution

For the Utilities - Regulated industry and Utilities sector, SJW Group's Beneish M-Score distribution charts can be found below:

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



SJW Group 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 SJW Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0586+0.528 * 0.9931+0.404 * 0.8725+0.892 * 1.08+0.115 * 1.1818
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9575+4.679 * -0.026119-0.327 * 0.9179
=-2.48

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $126.3 Mil.
Revenue was 171.338 + 204.843 + 156.886 + 137.296 = $670.4 Mil.
Gross Profit was 99.769 + 115.744 + 88.702 + 84.219 = $388.4 Mil.
Total Current Assets was $198.4 Mil.
Total Assets was $4,345.1 Mil.
Property, Plant and Equipment(Net PPE) was $3,134.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $108.1 Mil.
Selling, General, & Admin. Expense(SGA) was $98.7 Mil.
Total Current Liabilities was $343.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,526.7 Mil.
Net Income was 18.949 + 36.222 + 18.295 + 11.53 = $85.0 Mil.
Non Operating Income was 1.516 + 0.921 + 2.013 + 3.202 = $7.7 Mil.
Cash Flow from Operations was 31.528 + 61.939 + 46.757 + 50.607 = $190.8 Mil.
Total Receivables was $110.5 Mil.
Revenue was 171.374 + 175.981 + 149.041 + 124.302 = $620.7 Mil.
Gross Profit was 108.155 + 95.312 + 82.448 + 71.259 = $357.2 Mil.
Total Current Assets was $158.4 Mil.
Total Assets was $3,755.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,594.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $106.4 Mil.
Selling, General, & Admin. Expense(SGA) was $95.4 Mil.
Total Current Liabilities was $268.3 Mil.
Long-Term Debt & Capital Lease Obligation was $1,492.0 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)
=(126.284 / 670.363) / (110.454 / 620.698)
=0.188382 / 0.177951
=1.0586

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)
=(357.174 / 620.698) / (388.434 / 670.363)
=0.575439 / 0.579438
=0.9931

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 - (198.389 + 3134.708) / 4345.067) / (1 - (158.386 + 2594.358) / 3755.056)
=0.232901 / 0.266923
=0.8725

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
=670.363 / 620.698
=1.08

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))
=(106.439 / (106.439 + 2594.358)) / (108.138 / (108.138 + 3134.708))
=0.03941 / 0.033347
=1.1818

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)
=(98.656 / 670.363) / (95.404 / 620.698)
=0.147168 / 0.153704
=0.9575

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)
=((1526.699 + 342.974) / 4345.067) / ((1491.965 + 268.322) / 3755.056)
=0.430298 / 0.468778
=0.9179

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
=(84.996 - 7.652 - 190.831) / 4345.067
=-0.026119

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.

SJW Group has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.


SJW Group Beneish M-Score Related Terms

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SJW Group (SJW Group) Business Description

Traded in Other Exchanges
Address
110 West Taylor Street, San Jose, CA, USA, 95110
SJW Group is a U.S. water utility services holding company that provides, stores, purifies and distributes water. The company primarily operates in various California municipalities and also has operations in other states. Its operating segments include Water Utility Services and Real Estate Services. The majority of the company's revenue is derived from its water utility services segment.
Executives
Denise L Kruger director
Carl Guardino director 110 W. TAYLOR STREET, SAN JOSE CA 95110
Craig J Patla officer: President of CTWS CONNECTICUT WATER COMPANY, 93 WEST MAIN STREET, CLINTON CT 06413
Mohammed G. Zerhouni officer: SVP of Fin., Prin. Acct. Ofcr. 110 W. TAYLOR STREET, SAN JOSE CA 95110
Andrew Gere officer: President and COO 1221 SOUTH BASCOM AVENUE, SAN JOSE CA 95128
James Patrick Lynch officer: CFO/Treasurer 1675 LAURELWOOD DRIVE, SAN JOSE CA 95125
Bruce A Hauk officer: Chf. Crp. Dev. & Str. Offcr. 110 W. TAYLOR STREET, SAN JOSE CA 95110
Rebecca A Klein director 1411 E MISSION AVE, SPOKANE WA 99202
Katharine Armstrong director 919 CONGRESS AVENUE #1400, AUSTIN TX 78701
Brown Willie D. Jr. officer: VP, Gen Counsel, & Corp Sec 110 W. TAYLOR STREET, SAN JOSE CA 95110
Wendy Avila-walker officer: VP of Finance, Controller 110 W. TAYLOR STREET, SAN JOSE CA 95110
Andrew F Walters officer: Chief Administrative Officer 8 RIVER TERRACE, APT 8-T, NEW YORK NY 10282
Daniel B. More director 56 W BROTHER DRIVE, GREENWICH CT 06830
Douglas R King director 465 EL CENTRO ROAD, HILLSBOROUGH CA 94010
Mary Ann Hanley director 93 WEST MAIN STREET, CLINTON CT 06413