GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Phinia Inc (NYSE:PHIN) » Definitions » Beneish M-Score

Phinia (Phinia) Beneish M-Score : -2.50 (As of May. 17, 2024)


View and export this data going back to 2023. Start your Free Trial

What is Phinia 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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PHIN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67   Med: -2.59   Max: -2.5
Current: -2.5

During the past 4 years, the highest Beneish M-Score of Phinia was -2.50. The lowest was -2.67. And the median was -2.59.


Phinia Beneish M-Score Historical Data

The historical data trend for Phinia'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.

Phinia Beneish M-Score Chart

Phinia Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -2.67

Phinia Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - - - -2.67 -2.50

Competitive Comparison of Phinia's Beneish M-Score

For the Auto Parts subindustry, Phinia'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.


Phinia's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Phinia's Beneish M-Score distribution charts can be found below:

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



Phinia 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 Phinia 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 * 1.1411+0.528 * 1.0205+0.404 * 0.9254+0.892 * 1.056+0.115 * 0.9462
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0635+4.679 * -0.034942-0.327 * 0.9995
=-2.50

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $1,023 Mil.
Revenue was 863 + 882 + 896 + 887 = $3,528 Mil.
Gross Profit was 192 + 186 + 177 + 189 = $744 Mil.
Total Current Assets was $1,917 Mil.
Total Assets was $3,978 Mil.
Property, Plant and Equipment(Net PPE) was $888 Mil.
Depreciation, Depletion and Amortization(DDA) was $171 Mil.
Selling, General, & Admin. Expense(SGA) was $420 Mil.
Total Current Liabilities was $1,122 Mil.
Long-Term Debt & Capital Lease Obligation was $752 Mil.
Net Income was 29 + 21 + 11 + 35 = $96 Mil.
Non Operating Income was -16 + -9 + -15 + -39 = $-79 Mil.
Cash Flow from Operations was 31 + 62 + 155 + 66 = $314 Mil.
Total Receivables was $849 Mil.
Revenue was 835 + 851 + 859 + 796 = $3,341 Mil.
Gross Profit was 172 + 188 + 201 + 158 = $719 Mil.
Total Current Assets was $1,689 Mil.
Total Assets was $3,838 Mil.
Property, Plant and Equipment(Net PPE) was $926 Mil.
Depreciation, Depletion and Amortization(DDA) was $167 Mil.
Selling, General, & Admin. Expense(SGA) was $374 Mil.
Total Current Liabilities was $998 Mil.
Long-Term Debt & Capital Lease Obligation was $811 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)
=(1023 / 3528) / (849 / 3341)
=0.289966 / 0.254116
=1.1411

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)
=(719 / 3341) / (744 / 3528)
=0.215205 / 0.210884
=1.0205

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 - (1917 + 888) / 3978) / (1 - (1689 + 926) / 3838)
=0.294872 / 0.318656
=0.9254

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
=3528 / 3341
=1.056

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))
=(167 / (167 + 926)) / (171 / (171 + 888))
=0.15279 / 0.161473
=0.9462

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)
=(420 / 3528) / (374 / 3341)
=0.119048 / 0.111943
=1.0635

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)
=((752 + 1122) / 3978) / ((811 + 998) / 3838)
=0.471091 / 0.471339
=0.9995

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
=(96 - -79 - 314) / 3978
=-0.034942

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.

Phinia has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


Phinia (Phinia) Business Description

Traded in Other Exchanges
Address
3000 University Drive, Auburn Hills, MI, USA, 48326
Website
Phinia Inc is a leader in the development, design and manufacture of integrated components and systems that optimize performance, increase efficiency and reduce emissions in combustion and hybrid propulsion for commercial vehicles and industrial applications and light vehicles. It is a global supplier to most major original equipment manufacturers (OEMs) and offers a wide range of original equipment service (OES) solutions and remanufactured products as well as an expanded range of products for the independent (non-OEM) aftermarket. Phinia has an extensive original equipment portfolio of advanced fuel injection systems, fuel delivery modules, canisters, starters, alternators, sensors, electronic control modules and associated software.
Executives
Neil Fryer officer: VP and GM Global Aftermarket* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Samuel R. Chapin director 940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Brady D Ericson officer: President and CEO* 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Latondra Newton director 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Daun Norman director C/O GARRETT MOTION INC., LA PIECE 16, ROLLE V8 1180
Beasi Alisa Di officer: VP and CHRO* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Christopher Gustanski officer: VP, Operational Excellence* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Matthew Logar officer: VP and CIO* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Michael Coetzee officer: VP and GM Fuel Syst. Americas* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Samantha Pombier officer: VP Controller and CAO* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
John Lipinski officer: VP and GM Fuel Syst. Europe* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Sebastian Dori officer: VP and CPO* 3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Todd L Anderson officer: VP and Chief Tech. Officer* 5605 CARNEGIE BLVD. SUITE 500, CHARLOTTE NC 28209
Roger Wood director 3850 HAMLIN RD., AUBURN HILLS MI 48326
Robin Kendrick director BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326

Phinia (Phinia) Headlines

From GuruFocus

BlackRock Inc. Acquires Significant Stake in Phinia Inc.

By GuruFocus Research 08-08-2023

VANGUARD GROUP INC Acquires New Stake in Phinia Inc

By GuruFocus Research 08-10-2023

PHINIA Inc. to Report Q3 2023 Earnings

By Business Wire 10-09-2023

PHINIA Announces Return of Capital to Shareholders

By Business Wire 08-31-2023

PHINIA Inc. to Report Q2 2023 Earnings

By Business Wire 07-20-2023

PHINIA Inc. to Report Q4 2023 Earnings

By Business Wire 01-11-2024