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Stantec Inc (NYSE:STN)
Beneish M-Score
-2.25 (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 -2.44 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: -2.25

-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 -2.51.


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 * 1.2267+0.528 * 0.8883+0.404 * 1.0383+0.892 * 0.8978+0.115 * 0.7911
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1398+4.679 * -0.0012-0.327 * 0.9538
=-2.44

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $420 Mil.
Revenue was 565.964872607 + 574.406793368 + 559.298621018 + 561.499306278 = $2,261 Mil.
Gross Profit was 254.605005277 + 259.425798625 + 259.273260422 + 250.578390565 = $1,024 Mil.
Total Current Assets was $712 Mil.
Total Assets was $1,742 Mil.
Property, Plant and Equipment(Net PPE) was $119 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General & Admin. Expense(SGA) was $773 Mil.
Total Current Liabilities was $419 Mil.
Long-Term Debt was $196 Mil.
Net Income was 37.6428463742 + 34.9106348564 + 30.0816294183 + 33.0098855359 = $136 Mil.
Non Operating Income was -0.196743554953 + 5.20177921553 + -3.91107941037 + 11.2356919875 = $12 Mil.
Cash Flow from Operations was 63.3891150309 + 49.0165790538 + -69.9461087336 + 83.0055497745 = $125 Mil.
Accounts Receivable was $382 Mil.
Revenue was 612.737262737 + 585.243767313 + 516.555355536 + 803.902255639 = $2,518 Mil.
Gross Profit was 270.430478612 + 267.79501385 + 235.493249325 + 239.315789474 = $1,013 Mil.
Total Current Assets was $738 Mil.
Total Assets was $1,767 Mil.
Property, Plant and Equipment(Net PPE) was $139 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General & Admin. Expense(SGA) was $755 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt was $217 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)
=(420.188451681 / 2261.16959327) / (381.516665153 / 2518.43864122)
=0.18582792 / 0.15148936
=1.2267

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)
=(259.425798625 / 2518.43864122) / (254.605005277 / 2261.16959327)
=0.40224706 / 0.452811
=0.8883

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 - (712.360922659 + 118.972561435) / 1742.36016885) / (1 - (738.322586504 + 138.968304423) / 1767.30633003)
=0.52286932 / 0.50359998
=1.0383

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
=2261.16959327 / 2518.43864122
=0.8978

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))
=(53.6378636693 / (53.6378636693 + 138.968304423)) / (64.6286327448 / (64.6286327448 + 118.972561435))
=0.27848466 / 0.35200551
=0.7911

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)
=(772.786769745 / 2261.16959327) / (755.137533159 / 2518.43864122)
=0.34176418 / 0.29984353
=1.1398

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)
=((196.284486658 + 419.353233831) / 1742.36016885) / ((217.310870947 + 437.382617383) / 1767.30633003)
=0.35333551 / 0.37044709
=0.9538

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
=(135.644996185 - 12.3296482377 - 125.465135126) / 1742.36016885
=-0.0012

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 -2.44 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 0.76471.12460.66730.8791.1521.15220.83650.90930.9881.1688
GMI 0.94971.00191.05941.01171.01140.82151.21881.01370.99621.0016
AQI 1.04241.02860.98311.10990.98750.97641.00070.93111.04011.0441
SGI 1.33091.3461.151.31621.0410.89691.41281.10511.04370.9564
DEPI 0.81131.2220.81750.86291.07970.48221.90021.02550.98160.843
SGAI 1.04011.02850.93690.99060.98861.21410.82020.99211.00251.0273
LVGI 0.71011.39511.19140.95461.05660.93650.96380.88970.99791.0149
TATA -0.0553-0.0273-0.1042-0.0209-0.0227-0.0749-0.0397-0.0784-0.0225-0.0219
M-score -2.60-2.28-3.19-2.36-2.42-2.96-2.19-2.82-2.55-2.48

Stantec Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.90330.81660.78540.89750.81231.05271.27331.21341.22671.1472
GMI 1.00391.09361.08271.07411.17290.92330.92320.9320.88831.001
AQI 0.93080.93110.96960.97461.05071.04011.06041.0711.03831.0441
SGI 1.15461.23051.20081.16731.25390.97950.99140.9720.89780.9744
DEPI 1.91811.00271.03721.06381.0320.97440.89810.82450.79110.8341
SGAI 0.98740.91950.92950.9340.86371.08141.08261.08771.13981.028
LVGI 0.90830.88970.94851.03240.97460.99791.00630.91770.95381.0149
TATA -0.0549-0.0786-0.0731-0.0521-0.0375-0.02570.0148-0.0095-0.0012-0.0164
M-score -2.58-2.74-2.78-2.63-2.45-2.61-2.21-2.37-2.44-2.45
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