Russel Metals (Russel Metals) Beneish M-Score : -3.06 (As of Apr. 28, 2024)

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What is Russel Metals 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 -3.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RUSMF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.84 Med: -2.5 Max: -1.84
Current: -3.06

During the past 13 years, the highest Beneish M-Score of Russel Metals was -1.84. The lowest was -3.84. And the median was -2.50.

Russel Metals Beneish M-Score Historical Data

The historical data trend for Russel Metals'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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Russel Metals Beneish M-Score Chart

Russel Metals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-3.66

-1.84

-2.33

-3.06

Russel Metals 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	Get a 7-Day Free Trial															-2.33	-2.57	-2.80	-3.15	-3.06

Competitive Comparison of Russel Metals's Beneish M-Score

For the Industrial Distribution subindustry, Russel Metals'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.

Russel Metals's Beneish M-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Russel Metals's Beneish M-Score distribution charts can be found below:

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

Russel Metals 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 Russel Metals 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 * 1.0652

0.528 * 1.0259

0.404 * 0.7458

0.892 * 0.8608

0.115 * 1.0594

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1303

4.679 * -0.087392

0.327 * 0.9439

-3.04

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $347 Mil.
Revenue was 759.764 + 819.969 + 895.379 + 867.281 = $3,342 Mil.
Gross Profit was 161.673 + 165.841 + 207.286 + 190.236 = $725 Mil.
Total Current Assets was $1,462 Mil.
Total Assets was $1,916 Mil.
Property, Plant and Equipment(Net PPE) was $328 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General, & Admin. Expense(SGA) was $311 Mil.
Total Current Liabilities was $353 Mil.
Long-Term Debt & Capital Lease Obligation was $303 Mil.
Net Income was 35.182 + 44.786 + 63.977 + 54.009 = $198 Mil.
Non Operating Income was 0.82 + 9.46 + 5.269 + 6.431 = $22 Mil.
Cash Flow from Operations was 111.21 + 84.621 + 98.374 + 49.185 = $343 Mil.

Total Receivables was $379 Mil.
Revenue was 809.569 + 952.02 + 1063.964 + 1057.346 = $3,883 Mil.
Gross Profit was 160.618 + 205.113 + 269.057 + 229.305 = $864 Mil.
Total Current Assets was $1,376 Mil.
Total Assets was $1,845 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General, & Admin. Expense(SGA) was $320 Mil.
Total Current Liabilities was $369 Mil.
Long-Term Debt & Capital Lease Obligation was $300 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)
	=	(347.048 / 3342.393)	/	(378.506 / 3882.899)
	=	0.103832	/	0.09748
	=	1.0652

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)
	=	(864.093 / 3882.899)	/	(725.036 / 3342.393)
	=	0.222538	/	0.216921
	=	1.0259

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 - (1461.911 + 327.892) / 1915.698)	/	(1 - (1376.15 + 306.588) / 1845.344)
	=	0.065718	/	0.088117
	=	0.7458

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
	=	3342.393	/	3882.899
	=	0.8608

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))
	=	(50.449 / (50.449 + 306.588))	/	(50.466 / (50.466 + 327.892))
	=	0.141299	/	0.133382
	=	1.0594

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)
	=	(311.14 / 3342.393)	/	(319.795 / 3882.899)
	=	0.093089	/	0.08236
	=	1.1303

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)
	=	((303.22 + 352.937) / 1915.698)	/	((300.478 + 369.157) / 1845.344)
	=	0.342516	/	0.362878
	=	0.9439

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
	=	(197.954 - 21.98	-	343.39)	/	1915.698
	=	-0.087392

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.

Russel Metals has a M-score of -3.04 suggests that the company is unlikely to be a manipulator.

Russel Metals Beneish M-Score Related Terms

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Russel Metals (Russel Metals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Russel Metals Inc (OTCPK:RUSMF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RMZ:Germany RUS:Canada

Address

6600 Financial Drive, Mississauga, ON, CAN, L5N 7J6

Website

https://www.russelmetals.com

Russel Metals Inc is a Canada-based metal distribution company. The company conducts business primarily through three metals distribution segments: metals service centers; energy products; and steel distributors. The metal service centers provide processing and distribution services to a broad base of end-users. The energy products segment distributes oil country tubular goods, line pipe, tubes, valves, and fittings, primarily to the energy industry in Western Canada and the U.S. The steel distributors segment acts as master distributors selling steel in large volumes to other steel service centers and equipment manufacturers mainly on an "as is" basis. The company generates all of its revenue from the North American market.