EG has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
EG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.
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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Everest Group's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Everest Group was -2.05. The lowest was -4.09. And the median was -2.53.
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 Everest 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 * 1.0198 | + | 0.528 * 1 | + | 0.404 * 1 | + | 0.892 * 1.2215 | + | 0.115 * 1 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0 | + | 4.679 * -0.035397 | - | 0.327 * 1.1403 | |||||||
= | -2.30 |
* 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 $8,241 Mil. Revenue was 4080 + 3632 + 3932 + 3599 = $15,243 Mil. Gross Profit was 4080 + 3632 + 3932 + 3599 = $15,243 Mil. Total Current Assets was $0 Mil. Total Assets was $50,937 Mil. Property, Plant and Equipment(Net PPE) was $0 Mil. Depreciation, Depletion and Amortization(DDA) was $0 Mil. Selling, General, & Admin. Expense(SGA) was $0 Mil. Total Current Liabilities was $0 Mil. Long-Term Debt & Capital Lease Obligation was $1,080 Mil. Net Income was 733 + 804 + 678 + 670 = $2,885 Mil. Non Operating Income was 31 + -75 + 103 + 38 = $97 Mil. Cash Flow from Operations was 1102 + 1017 + 1378 + 1094 = $4,591 Mil. |
Total Receivables was $6,616 Mil. Revenue was 3301 + 3274 + 3115 + 2789 = $12,479 Mil. Gross Profit was 3301 + 3274 + 3115 + 2789 = $12,479 Mil. Total Current Assets was $0 Mil. Total Assets was $41,839 Mil. Property, Plant and Equipment(Net PPE) was $0 Mil. Depreciation, Depletion and Amortization(DDA) was $0 Mil. Selling, General, & Admin. Expense(SGA) was $66 Mil. Total Current Liabilities was $0 Mil. Long-Term Debt & Capital Lease Obligation was $778 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) |
= | (8241 / 15243) | / | (6616 / 12479) | |
= | 0.540642 | / | 0.530171 | |
= | 1.0198 |
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) | |
= | (12479 / 12479) | / | (15243 / 15243) | |
= | 1 | / | 1 | |
= | 1 |
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 - (0 + 0) / 50937) | / | (1 - (0 + 0) / 41839) | |
= | 1 | / | 1 | |
= | 1 |
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 | |
= | 15243 | / | 12479 | |
= | 1.2215 |
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 / (0 + 0)) | / | (0 / (0 + 0)) | |
= | / | |||
= | 1 |
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 / 15243) | / | (66.018 / 12479) | |
= | 0 | / | 0.00529 | |
= | 0 |
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) |
= | ((1080 + 0) / 50937) | / | ((778 + 0) / 41839) | |
= | 0.021203 | / | 0.018595 | |
= | 1.1403 |
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 | |
= | (2885 - 97 | - | 4591) | / | 50937 | |
= | -0.035397 |
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.
Everest Group has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Everest Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Juan C Andrade | officer: President and CEO | THE HARTFORD, ONE HARTFORD PLAZA, HARTFORD CT 06155 |
Meryl D Hartzband | director | C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901 |
Hazel Mcneilage | director | 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017 |
John A Weber | director | COPLEY SQUARE CAPITAL MANAGEMENT, 108 MYRTLE STREET, NORTH QUINCY MA 02171 |
Sanjoy Mukherjee | officer: General Counsel | 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Galtney William F Jr | director | THE GALTNEY GROUP, INC., 820 GESSNER, SUITE 1000, HOUSTON TX 77024-4259 |
Roger M. Singer | director | P.O. BOX 2756, DURANGO CO 81302 |
John P Doucette | officer: Executive VP and CUO | 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Mike Karmilowicz | officer: EVP, Pres/CEO Insurance Div | 100 EVEREST WAY, WARREN NJ 07059 |
James Allan Williamson | officer: EVP, Chief Operating Officer | 100 EVEREST WAY, WARREN NJ 07059 |
Mark Kociancic | officer: EVP & CFO | 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Geraldine Losquadro | director | 200 EAST 74TH STREET APT 10, NEW YORK CITY NY 10021 |
Joseph V Taranto | director, officer: Chairman and CEO | EVEREST REINSURANCE CO, 100 EVEREST WAY, WARREN NJ 07059 |
John A Graf | director | 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Jonathan Zaffino | officer: SVP & President Everest Nat'l | 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.