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Stantec Inc (NYSE:STN)
Beneish M-Score
-2.33 (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 -2.32 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: -2.33

-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 -2.49.


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 * 1.1057+0.528 * 1.0757+0.404 * 1.0937+0.892 * 1.2234+0.115 * 1.0261
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9779+4.679 * -0.0215-0.327 * 1.3645
=-2.32

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $568 Mil.
Revenue was 959.195148001 + 602.858693966 + 571.134885831 + 518.09159192 = $2,651 Mil.
Gross Profit was 360.904028074 + 323.333333333 + 256.418418267 + 223.805877634 = $1,164 Mil.
Total Current Assets was $1,211 Mil.
Total Assets was $3,210 Mil.
Property, Plant and Equipment(Net PPE) was $163 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $925 Mil.
Total Current Liabilities was $801 Mil.
Long-Term Debt was $747 Mil.
Net Income was 37.5869697894 + 16.4192647743 + 23.1521246031 + 18.4620433166 = $96 Mil.
Non Operating Income was -12.9760451633 + -1.18504730883 + -0.744745198851 + 8.84926711879 = $-6 Mil.
Cash Flow from Operations was 45.1502898993 + 24.0088413215 + -7.29925903523 + 108.711441698 = $171 Mil.
Accounts Receivable was $420 Mil.
Revenue was 565.964872607 + 480.321876264 + 559.298621018 + 561.499306278 = $2,167 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.



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)
=(568.392584681 / 2651.28031972) / (420.188451681 / 2167.08467617)
=0.21438419 / 0.19389572
=1.1057

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)
=(1023.88245489 / 2167.08467617) / (1164.46165731 / 2651.28031972)
=0.47246998 / 0.43920729
=1.0757

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 - (1211.08559658 + 163.397162038) / 3210.27693012) / (1 - (712.360922659 + 118.972561435) / 1742.36016885)
=0.57184916 / 0.52286932
=1.0937

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
=2651.28031972 / 2167.08467617
=1.2234

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))
=(64.6286327448 / (64.6286327448 + 118.972561435)) / (85.329452778 / (85.329452778 + 163.397162038))
=0.35200551 / 0.34306523
=1.0261

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)
=(924.547818046 / 2651.28031972) / (772.786769745 / 2167.08467617)
=0.34871749 / 0.35660202
=0.9779

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)
=((747.054470552 + 800.681263351) / 3210.27693012) / ((196.284486658 + 419.353233831) / 1742.36016885)
=0.48211907 / 0.35333551
=1.3645

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
=(95.6204024834 - -6.05657055214 - 170.571313883) / 3210.27693012
=-0.0215

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 -2.32 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 local exchange's currency.

Stantec Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.76471.12460.66730.8791.41541.15580.68330.90320.9881.1688
GMI 0.94971.00191.05941.01170.81951.2380.9931.01890.99621.0016
AQI 1.04241.02860.98311.10991.00190.96691.00160.9261.01351.0714
SGI 1.33091.3461.151.31620.84351.35161.14921.11261.04370.9564
DEPI 0.81131.2220.81750.86291.06380.48931.90051.02570.98160.843
SGAI 1.04011.02850.93690.99061.21950.80591.00670.98721.00251.0273
LVGI 0.71011.39511.19140.95461.04390.94510.96240.89351.02380.9892
TATA -0.0553-0.0273-0.1042-0.0412-0.0187-0.0751-0.0399-0.0784-0.023-0.0219
M-score -2.60-2.28-3.19-2.45-2.46-2.27-2.71-2.82-2.57-2.46

Stantec Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.03161.05070.97571.18071.17441.14621.19810.97171.22541.1057
GMI 0.93370.90650.99610.99550.96290.95070.95850.97081.00221.0757
AQI 0.97461.05071.01351.06041.0711.03831.07141.03671.08841.0937
SGI 1.01550.96931.05681.06911.00420.96090.93310.9211.021.2234
DEPI 1.06361.03190.97440.89810.82450.79110.83410.93531.06531.0261
SGAI 1.07451.11781.00231.0041.05281.0651.07361.06921.0460.9779
LVGI 1.03240.97461.02381.00630.91770.95380.98921.04461.34621.3645
TATA -0.0577-0.0482-0.02270.016-0.00840.0047-0.0235-0.0616-0.0302-0.0215
M-score -2.77-2.72-2.57-2.17-2.35-2.39-2.49-2.90-2.47-2.32
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