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Stantec Inc (NYSE:STN)
Beneish M-Score
-2.81 (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.

Stantec Inc has a M-score of -2.85 suggests that the company is not a manipulator.

STN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: -0.08
Current: -2.81

-3.39
-0.08

During the past 13 years, the highest Beneish M-Score of Stantec Inc was -0.08. The lowest was -3.39. And the median was -2.50.


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 Stantec 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 * 0.9307+0.528 * 1.0136+0.404 * 1.0367+0.892 * 0.9615+0.115 * 0.9353
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0241+4.679 * -0.0571-0.327 * 1.0446
=-2.85

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $371 Mil.
Revenue was 571.134885831 + 518.09159192 + 565.964872607 + 574.406793368 = $2,230 Mil.
Gross Profit was 256.418418267 + 223.805877634 + 254.605005277 + 259.425798625 = $994 Mil.
Total Current Assets was $681 Mil.
Total Assets was $1,765 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $768 Mil.
Total Current Liabilities was $427 Mil.
Long-Term Debt was $269 Mil.
Net Income was 23.1521246031 + 18.4620433166 + 37.6428463742 + 34.9106348564 = $114 Mil.
Non Operating Income was -0.744745198851 + -3.15248304529 + -0.196743554953 + 5.20177921553 = $1 Mil.
Cash Flow from Operations was -7.29925903523 + 108.711441698 + 63.3891150309 + 49.0165790538 = $214 Mil.
Accounts Receivable was $415 Mil.
Revenue was 559.298621018 + 561.499306278 + 612.737262737 + 585.243767313 = $2,319 Mil.
Gross Profit was 259.273260422 + 250.578390565 + 270.430478612 + 267.79501385 = $1,048 Mil.
Total Current Assets was $703 Mil.
Total Assets was $1,753 Mil.
Property, Plant and Equipment(Net PPE) was $129 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $780 Mil.
Total Current Liabilities was $365 Mil.
Long-Term Debt was $298 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)
=(371.122032361 / 2229.59814373) / (414.693295292 / 2318.77895735)
=0.16645243 / 0.17884124
=0.9307

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)
=(223.805877634 / 2318.77895735) / (256.418418267 / 2229.59814373)
=0.45199528 / 0.44593466
=1.0136

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 - (680.827914713 + 122.250113413) / 1764.91758657) / (1 - (702.990965288 + 128.509272468) / 1753.01157077)
=0.54497704 / 0.52567327
=1.0367

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
=2229.59814373 / 2318.77895735
=0.9615

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))
=(60.4785775005 / (60.4785775005 + 128.509272468)) / (63.5819042692 / (63.5819042692 + 122.250113413))
=0.32001305 / 0.3421472
=0.9353

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)
=(768.412986969 / 2229.59814373) / (780.345238635 / 2318.77895735)
=0.34464192 / 0.33653283
=1.0241

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)
=((269.485105096 + 427.321185544) / 1764.91758657) / ((298.00681566 + 364.557774608) / 1753.01157077)
=0.39480953 / 0.37795791
=1.0446

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
=(114.16764915 - 1.10780741644 - 213.817876747) / 1764.91758657
=-0.0571

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.

Stantec Inc has a M-score of -2.85 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.

Stantec Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.64911.12460.66730.8791.14691.74180.55580.90930.9881.1688
GMI 1.11891.00191.05941.01171.01140.82151.21881.01370.99621.0016
AQI 1.04241.02860.98311.10991.00190.96691.00160.9261.01351.0714
SGI 1.5681.3461.151.31621.0410.89691.41281.10511.04370.9564
DEPI 0.81131.2220.81750.86291.07760.4831.89981.02610.98160.843
SGAI 0.88281.02850.93690.99060.98861.21410.82020.99211.00251.0273
LVGI 0.71011.39511.19140.95461.04390.94510.96240.89351.02380.9892
TATA -0.0553-0.0273-0.1173-0.0209-0.0225-0.0751-0.0398-0.0784-0.023-0.0219
M-score -2.38-2.28-3.25-2.36-2.41-2.43-2.44-2.82-2.57-2.46

Stantec Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.94220.90511.03161.05070.97571.18071.12651.09851.14720.9307
GMI 0.94630.93820.93370.90650.99610.99551.00380.9921.0011.0136
AQI 0.9260.96960.97461.05071.01351.06041.0711.03831.07141.0367
SGI 1.06651.04191.01550.96931.05681.06911.04691.00260.97440.9615
DEPI 1.00291.03691.06361.03190.97440.89810.82450.79110.83410.9353
SGAI 1.06271.07261.07451.11781.00231.0041.00981.02071.0281.0241
LVGI 0.89350.94851.03240.97461.02381.00630.91770.95380.98921.0446
TATA -0.0843-0.0787-0.0577-0.0482-0.02270.016-0.00840.0024-0.0189-0.0571
M-score -2.90-2.93-2.77-2.72-2.57-2.17-2.33-2.38-2.45-2.85
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