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Stantec Inc (NYSE:STN)
Beneish M-Score
-2.47 (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 -2.54 suggests that the company is not a manipulator.

STN' s 10-Year Beneish M-Score Range
Min: -2.93   Max: -0.17
Current: -2.47

-2.93
-0.17

During the past 13 years, the highest Beneish M-Score of Stantec Inc was -0.17. The lowest was -2.93. And the median was -2.46.


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 * 0.9757+0.528 * 0.9961+0.404 * 1.0401+0.892 * 1.0568+0.115 * 0.9744
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0023+4.679 * -0.0223-0.327 * 0.9979
=-2.54

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $365 Mil.
Revenue was 561.499306278 + 612.737262737 + 585.243767313 + 516.555355536 = $2,276 Mil.
Gross Profit was 250.578390565 + 270.430478612 + 267.79501385 + 235.493249325 = $1,024 Mil.
Total Current Assets was $732 Mil.
Total Assets was $1,743 Mil.
Property, Plant and Equipment(Net PPE) was $132 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $761 Mil.
Total Current Liabilities was $412 Mil.
Long-Term Debt was $222 Mil.
Net Income was 33.0098855359 + 44.1313232222 + 40.9095106187 + 30.1827182718 = $148 Mil.
Non Operating Income was 3.52323968089 + -1.24602670057 + 0.0240073868883 + 0.220522052205 = $3 Mil.
Cash Flow from Operations was 83.0055497745 + 87.6232858051 + 17.2132963989 + -3.26282628263 = $185 Mil.
Accounts Receivable was $354 Mil.
Revenue was 540.707706767 + 562.056092843 + 549.683802134 + 501.178710938 = $2,154 Mil.
Gross Profit was 239.315789474 + 254.343326886 + 246.850630456 + 224.928710938 = $965 Mil.
Total Current Assets was $683 Mil.
Total Assets was $1,568 Mil.
Property, Plant and Equipment(Net PPE) was $126 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General & Admin. Expense(SGA) was $718 Mil.
Total Current Liabilities was $383 Mil.
Long-Term Debt was $189 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)
=(364.557752341 / 2276.03569186) / (353.532894737 / 2153.62631268)
=0.16017225 / 0.16415703
=0.9757

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)
=(270.430478612 / 2153.62631268) / (250.578390565 / 2276.03569186)
=0.44828504 / 0.45003562
=0.9961

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 - (732.238120014 + 132.420221991) / 1743.38362817) / (1 - (682.547932331 + 125.501879699) / 1567.83646617)
=0.50403438 / 0.48460836
=1.0401

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
=2276.03569186 / 2153.62631268
=1.0568

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))
=(51.660030399 / (51.660030399 + 125.501879699)) / (56.5514796552 / (56.5514796552 + 132.420221991))
=0.29159784 / 0.29925899
=0.9744

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)
=(760.998884313 / 2276.03569186) / (718.405917064 / 2153.62631268)
=0.33435279 / 0.33357965
=1.0023

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)
=((222.071626778 + 411.957162678) / 1743.38362817) / ((188.856203008 + 382.503759398) / 1567.83646617)
=0.36367715 / 0.36442574
=0.9979

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
=(148.233437649 - 2.52174241941 - 184.579305696) / 1743.38362817
=-0.0223

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 -2.54 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96740.76471.12460.66730.8791.41540.78261.00910.90320.988
GMI 1.1560.94971.00191.05941.01170.81951.2380.9931.01890.9962
AQI 1.58871.04241.02860.98311.10991.00190.96241.00620.9261.0401
SGI 1.44351.33091.3461.151.31620.84351.35161.14921.11261.0437
DEPI 1.03840.81131.2220.81750.86291.06380.48951.89981.02570.9816
SGAI 0.8411.04011.02850.93690.99061.21950.80591.00670.98721.0025
LVGI 0.93330.71011.39511.19140.95461.04390.94790.95970.89350.9979
TATA -0.0276-0.0553-0.0273-0.1116-0.0412-0.0187-0.0749-0.0399-0.0784-0.0225
M-score -1.87-2.60-2.28-3.22-2.45-2.46-2.61-2.41-2.82-2.55

Stantec Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.6540.92140.91670.77440.94220.90511.03161.05070.97571.1807
GMI 1.06931.0761.07371.16980.94630.93820.93370.90650.99610.9955
AQI 1.00620.97920.98140.93080.9260.96960.97461.05071.04011.0604
SGI 1.1941.2161.24031.34681.06651.04191.01550.96931.05681.0691
DEPI 1.91721.87241.94091.91811.00291.03691.06361.03190.97440.8981
SGAI 0.93480.92680.92820.84721.06271.07261.07451.11781.00231.004
LVGI 0.95970.9630.93390.90830.89350.94851.03240.97460.99791.0063
TATA -0.04-0.0406-0.0449-0.0518-0.078-0.0726-0.052-0.0394-0.02230.0161
M-score -2.64-2.39-2.38-2.40-2.87-2.91-2.74-2.68-2.54-2.17
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