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Stantec Inc (NYSE:STN)
Beneish M-Score
-2.71 (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 -2.80 suggests that the company is not a manipulator.

STN' s 10-Year Beneish M-Score Range
Min: -3.03   Max: -0.02
Current: -2.71

-3.03
-0.02

During the past 13 years, the highest Beneish M-Score of Stantec Inc was -0.02. The lowest was -3.03. And the median was -2.43.


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 * 0.8905+0.528 * 1.009+0.404 * 0.9696+0.892 * 1.111+0.115 * 1.0475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9972+4.679 * -0.0706-0.327 * 0.9485
=-2.80

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $532 Mil.
Revenue was 522.195632393 + 781.857404022 + 467.912162162 + 544.926923077 = $2,317 Mil.
Gross Profit was 238.064604186 + 232.753199269 + 253.852316602 + 244.714423077 = $969 Mil.
Total Current Assets was $689 Mil.
Total Assets was $1,623 Mil.
Property, Plant and Equipment(Net PPE) was $129 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General & Admin. Expense(SGA) was $722 Mil.
Total Current Liabilities was $364 Mil.
Long-Term Debt was $245 Mil.
Net Income was 30.5122838944 + 32.5968921389 + 44.3648648649 + 34.7413461538 = $142 Mil.
Non Operating Income was 0.222929936306 + 2.7084095064 + 1.22104247104 + 0.195192307692 = $4 Mil.
Cash Flow from Operations was -3.29845313922 + 110.3976234 + 107.673745174 + 37.7182692308 = $252 Mil.
Accounts Receivable was $538 Mil.
Revenue was 503.637880275 + 712.260080645 + 402.600810537 + 466.873767258 = $2,085 Mil.
Gross Profit was 226.032384691 + 220.768145161 + 221.597771023 + 211.931952663 = $880 Mil.
Total Current Assets was $602 Mil.
Total Assets was $1,473 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $652 Mil.
Total Current Liabilities was $333 Mil.
Long-Term Debt was $250 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)
=(532.181073703 / 2316.89212165) / (537.924435721 / 2085.37253872)
=0.2296961 / 0.25795124
=0.8905

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)
=(232.753199269 / 2085.37253872) / (238.064604186 / 2316.89212165)
=0.42214532 / 0.41839865
=1.009

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 - (688.757051865 + 129.470427662) / 1622.6533212) / (1 - (602.338567223 + 117.447497547) / 1472.83807655)
=0.4957472 / 0.51129314
=0.9696

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
=2316.89212165 / 2085.37253872
=1.111

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))
=(49.6896732571 / (49.6896732571 + 117.447497547)) / (51.3048834705 / (51.3048834705 + 129.470427662))
=0.29729876 / 0.2838047
=1.0475

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)
=(722.022502166 / 2316.89212165) / (651.718502486 / 2085.37253872)
=0.31163406 / 0.31251898
=0.9972

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)
=((245.213830755 + 364.259326661) / 1622.6533212) / ((249.950932287 + 333.286555447) / 1472.83807655)
=0.37560282 / 0.39599566
=0.9485

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
=(142.215387052 - 4.34757422144 - 252.491184666) / 1622.6533212
=-0.0706

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 -2.80 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.80270.96740.77961.12360.67480.89441.92830.81410.98760.8881
GMI 1.56881.1560.94971.00191.05941.01170.81951.2380.9931.0189
AQI 1.16611.58871.04241.02860.98311.10991.00190.96241.00620.926
SGI 1.03311.45681.29921.36191.16771.31910.84731.34731.13451.0843
DEPI 0.6541.03840.81131.2220.81750.86291.06380.48951.89981.0257
SGAI 0.55620.8411.04011.02850.93690.99061.21950.80591.00670.9872
LVGI 0.83550.93330.71011.39511.19140.95461.04390.94790.95970.8935
TATA -0.1316-0.0276-0.0553-0.0273-0.1116-0.0412-0.0187-0.0749-0.0399-0.0784
M-score -1.87-1.86-2.62-2.27-3.20-2.43-1.99-2.59-2.44-2.85

Stantec Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.77670.86330.89021.04420.94620.91420.89110.84660.84680.8905
GMI 1.23781.16771.11161.00671.06951.07611.07411.12221.01831.009
AQI 0.96240.93790.9320.94251.00620.97920.98140.93080.9260.9696
SGI 1.41211.28331.18541.08931.18411.21281.2331.28441.13721.111
DEPI 0.48070.49870.52230.54571.91331.88311.92921.93340.9911.0475
SGAI 0.80610.85310.89750.99570.93450.92680.92780.88310.98730.9972
LVGI 0.94790.9730.97151.02630.95970.9630.93390.90830.89350.9485
TATA -0.0732-0.08-0.0913-0.097-0.0396-0.0398-0.0453-0.0532-0.0791-0.0706
M-score -2.56-2.69-2.84-2.89-2.38-2.40-2.41-2.42-2.85-2.80
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