Stora Enso Oyj (Stora Enso Oyj) Beneish M-Score : -2.81 (As of Apr. 24, 2024)

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What is Stora Enso Oyj 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SEOAY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.71 Max: -2.26
Current: -2.81

During the past 13 years, the highest Beneish M-Score of Stora Enso Oyj was -2.26. The lowest was -2.82. And the median was -2.71.

Stora Enso Oyj Beneish M-Score Historical Data

The historical data trend for Stora Enso Oyj'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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Stora Enso Oyj Beneish M-Score Chart

Stora Enso Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.75

-2.71

-2.26

-2.40

-2.81

Stora Enso Oyj 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															-2.40	-2.47	-2.73	-2.73	-2.81

Competitive Comparison of Stora Enso Oyj's Beneish M-Score

For the Paper & Paper Products subindustry, Stora Enso Oyj'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.

Stora Enso Oyj's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Stora Enso Oyj's Beneish M-Score distribution charts can be found below:

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

Stora Enso Oyj 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 Stora Enso Oyj 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 * 1.0209

0.528 * 1.2691

0.404 * 1.013

0.892 * 0.8248

0.115 * 0.9549

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9574

4.679 * -0.053099

0.327 * 1.2171

-2.79

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1,323 Mil.
Revenue was 2370.774 + 2270.011 + 2572.048 + 2913.276 = $10,126 Mil.
Gross Profit was 943.293 + 703.308 + 797.4 + 1074.946 = $3,519 Mil.
Total Current Assets was $6,602 Mil.
Total Assets was $22,632 Mil.
Property, Plant and Equipment(Net PPE) was $7,781 Mil.
Depreciation, Depletion and Amortization(DDA) was $574 Mil.
Selling, General, & Admin. Expense(SGA) was $951 Mil.
Total Current Liabilities was $4,007 Mil.
Long-Term Debt & Capital Lease Obligation was $4,847 Mil.
Net Income was -312.977 + -35.219 + -244.854 + 202.355 = $-391 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 322.792 + 220.918 + 63.922 + 203.426 = $811 Mil.

Total Receivables was $1,571 Mil.
Revenue was 3033.898 + 2933.663 + 3228.33 + 3081.498 = $12,277 Mil.
Gross Profit was 1459.746 + 1318.812 + 1322.41 + 1313.877 = $5,415 Mil.
Total Current Assets was $6,145 Mil.
Total Assets was $22,163 Mil.
Property, Plant and Equipment(Net PPE) was $8,043 Mil.
Depreciation, Depletion and Amortization(DDA) was $565 Mil.
Selling, General, & Admin. Expense(SGA) was $1,204 Mil.
Total Current Liabilities was $4,166 Mil.
Long-Term Debt & Capital Lease Obligation was $2,958 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)
	=	(1322.792 / 10126.109)	/	(1570.975 / 12277.389)
	=	0.130632	/	0.127957
	=	1.0209

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)
	=	(5414.845 / 12277.389)	/	(3518.947 / 10126.109)
	=	0.441042	/	0.347512
	=	1.2691

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 - (6601.963 + 7780.807) / 22632.497)	/	(1 - (6145.127 + 8043.432) / 22163.136)
	=	0.364508	/	0.359813
	=	1.013

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
	=	10126.109	/	12277.389
	=	0.8248

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))
	=	(564.675 / (564.675 + 8043.432))	/	(573.948 / (573.948 + 7780.807))
	=	0.065598	/	0.068697
	=	0.9549

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)
	=	(950.521 / 10126.109)	/	(1203.781 / 12277.389)
	=	0.093868	/	0.098049
	=	0.9574

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)
	=	((4847.328 + 4006.543) / 22632.497)	/	((2957.627 + 4166.314) / 22163.136)
	=	0.391202	/	0.321432
	=	1.2171

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
	=	(-390.695 - 0	-	811.058)	/	22632.497
	=	-0.053099

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.

Stora Enso Oyj has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.

Stora Enso Oyj Beneish M-Score Related Terms

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Stora Enso Oyj (Stora Enso Oyj) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Stora Enso Oyj (OTCPK:SEOAY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SEOJF:USA STE R:Sweden STE A:Sweden STERVh:UK 0KCK:UK 0CXC:UK STERV:Finland STEAV:Finland ENUR:Germany

Address

P.O. Box 309, Helsinki, FIN, FI-00101

Website

https://www.storaenso.com

Stora Enso Oyj company develops and produces solutions based on wood and biomass for a range of industries and applications worldwide, leading in the bioeconomy. Its operating segments are Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and others. The Packaging Solutions division develops and sells premium fiber-based packaging products and services. Its high-end eco-friendly packaging products are used by leading brands across multiple market sectors, including the retail, e-commerce, and industrial sectors. Key revenue is generated from the Packaging Solutions segment.