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Stewart Enterprises, Inc. (NAS:STEI)
Beneish M-Score
0.00 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Stewart Enterprises, Inc. has a M-score of -2.42 suggests that the company is not a manipulator.

STEI' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Stewart Enterprises, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Stewart Enterprises, Inc. 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 * 1.074+0.528 * 0.9803+0.404 * 0.7662+0.892 * 1.0154+0.115 * 2.2839
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9887+4.679 * -0.0164-0.327 * 0.9721
=-2.42

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Oct13) TTM:Last Year (Oct12) TTM:
Accounts Receivable was $46.4 Mil.
Revenue was 127.461 + 127.062 + 133.853 + 135.681 = $524.1 Mil.
Gross Profit was 26.132 + 23.195 + 31.967 + 32.316 = $113.6 Mil.
Total Current Assets was $247.4 Mil.
Total Assets was $2,317.6 Mil.
Property, Plant and Equipment(Net PPE) was $694.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.2 Mil.
Selling, General & Admin. Expense(SGA) was $28.6 Mil.
Total Current Liabilities was $183.4 Mil.
Long-Term Debt was $241.5 Mil.
Net Income was 5.292 + 8.277 + 11.875 + 15.477 = $40.9 Mil.
Non Operating Income was 0.069 + -0.002 + -8.225 + 0 = $-8.2 Mil.
Cash Flow from Operations was 18.591 + 23.336 + 33.151 + 11.896 = $87.0 Mil.
Accounts Receivable was $42.5 Mil.
Revenue was 129.436 + 129.239 + 132.598 + 124.824 = $516.1 Mil.
Gross Profit was 28.162 + 26.986 + 29.138 + 25.396 = $109.7 Mil.
Total Current Assets was $209.5 Mil.
Total Assets was $2,221.7 Mil.
Property, Plant and Equipment(Net PPE) was $291.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.4 Mil.
Selling, General & Admin. Expense(SGA) was $28.5 Mil.
Total Current Liabilities was $97.2 Mil.
Long-Term Debt was $321.9 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(46.402 / 524.057) / (42.549 / 516.097)
=0.0885438 / 0.0824438
=1.074

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)
=(23.195 / 516.097) / (26.132 / 524.057)
=0.21252206 / 0.2167894
=0.9803

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (247.404 + 694.782) / 2317.639) / (1 - (209.481 + 291.26) / 2221.685)
=0.59347163 / 0.77461206
=0.7662

4. SGI = Sales Growth Index

Ratio of sales 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
=524.057 / 516.097
=1.0154

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(26.412 / (26.412 + 291.26)) / (26.248 / (26.248 + 694.782))
=0.08314236 / 0.03640348
=2.2839

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(28.633 / 524.057) / (28.521 / 516.097)
=0.05463719 / 0.05526287
=0.9887

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((241.525 + 183.442) / 2317.639) / ((321.887 + 97.189) / 2221.685)
=0.18336203 / 0.1886298
=0.9721

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
=(40.921 - -8.158 - 86.974) / 2317.639
=-0.0164

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Stewart Enterprises, Inc. has a M-score of -2.42 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Stewart Enterprises, Inc. Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
DSRI 0.61521.2720.90940.82170.96911.08760.83760.75891.06131.074
GMI 1.02651.12280.93131.03641.12481.06120.93090.9880.92170.9803
AQI 1.02240.96581.00940.99310.91280.99491.32630.99690.99910.7662
SGI 0.98430.99111.05181.01671.00660.92421.02781.02551.00671.0154
DEPI 0.93382.09851.00660.95581.03780.96910.46490.98521.01892.2839
SGAI 0.97951.14721.55230.96511.04031.01760.88960.9311.05810.9887
LVGI 0.86761.02840.94021.14291.17690.840.86250.99860.99660.9721
TATA -0.0228-0.0674-0.0248-0.018-0.0436-0.0321-0.0146-0.0215-0.0183-0.02
M-score -2.89-2.41-2.74-2.74-2.74-2.54-2.58-2.78-2.55-2.44

Stewart Enterprises, Inc. Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
DSRI 1.0120.75890.94441.01080.84031.06131.08431.00991.06621.074
GMI 0.94720.9881.03081.00320.95290.92170.86660.87350.93610.9803
AQI 1.32040.99691.00181.00591.0090.99910.99470.76520.76130.7662
SGI 1.02271.02551.00611.00861.01461.00671.03691.03341.01941.0154
DEPI 0.44470.98521.01691.02241.01411.01891.01292.30722.31952.2839
SGAI 0.91880.93750.95850.94171.00141.05081.04311.06221.01880.9887
LVGI 0.9470.99860.99721.00051.00530.99660.98240.97510.96840.9721
TATA -0.015-0.0215-0.0177-0.0156-0.0191-0.0149-0.0135-0.0169-0.0144-0.0164
M-score -2.45-2.78-2.58-2.52-2.72-2.53-2.51-2.53-2.44-2.42
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