Switch to:
Stantec Inc (NYSE:STN)
Beneish M-Score
-2.44 (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 -2.46 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: -2.44

-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 * 1.2254+0.528 * 1.0022+0.404 * 1.0884+0.892 * 1.02+0.115 * 1.0653
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.046+4.679 * -0.0277-0.327 * 1.3462
=-2.46

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $549 Mil.
Revenue was 602.858693966 + 571.134885831 + 518.09159192 + 565.964872607 = $2,258 Mil.
Gross Profit was 323.333333333 + 256.418418267 + 223.805877634 + 254.605005277 = $1,058 Mil.
Total Current Assets was $1,196 Mil.
Total Assets was $3,177 Mil.
Property, Plant and Equipment(Net PPE) was $162 Mil.
Depreciation, Depletion and Amortization(DDA) was $73 Mil.
Selling, General & Admin. Expense(SGA) was $835 Mil.
Total Current Liabilities was $749 Mil.
Long-Term Debt was $793 Mil.
Net Income was 16.4192647743 + 23.1521246031 + 18.4620433166 + 37.6428463742 = $96 Mil.
Non Operating Income was -1.18504730883 + -0.744745198851 + -3.15248304529 + -0.196743554953 = $-5 Mil.
Cash Flow from Operations was 24.0088413215 + -7.29925903523 + 108.711441698 + 63.3891150309 = $189 Mil.
Accounts Receivable was $440 Mil.
Revenue was 480.321876264 + 559.298621018 + 561.499306278 + 612.737262737 = $2,214 Mil.
Gross Profit was 259.425798625 + 259.273260422 + 250.578390565 + 270.430478612 = $1,040 Mil.
Total Current Assets was $723 Mil.
Total Assets was $1,794 Mil.
Property, Plant and Equipment(Net PPE) was $127 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $783 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt was $210 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)
=(549.464091826 / 2258.05004432) / (439.602102709 / 2213.8570663)
=0.24333566 / 0.19856842
=1.2254

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)
=(1039.70792822 / 2213.8570663) / (1058.16263451 / 2258.05004432)
=0.46963643 / 0.46861788
=1.0022

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 - (1196.16410734 + 161.667442221) / 3176.53172018) / (1 - (723.22684998 + 126.993934493) / 1793.83259199)
=0.57254274 / 0.52603114
=1.0884

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
=2258.05004432 / 2213.8570663
=1.02

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))
=(62.7084242031 / (62.7084242031 + 126.993934493)) / (72.7320217063 / (72.7320217063 + 161.667442221))
=0.33056217 / 0.3102909
=1.0653

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)
=(835.251646602 / 2258.05004432) / (782.888633056 / 2213.8570663)
=0.36989953 / 0.35363107
=1.046

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)
=((793.305413371 + 748.511710873) / 3176.53172018) / ((209.677315002 + 437.101496159) / 1793.83259199)
=0.48537753 / 0.36055695
=1.3462

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
=(95.6762790681 - -5.27901910791 - 188.810139015) / 3176.53172018
=-0.0277

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 -2.46 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 0.76471.12460.66730.8791.41541.15580.68330.90320.9881.1688
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.90511.03161.05070.97571.18071.17441.14621.19810.97171.2254
GMI 0.93820.93370.90650.99610.99550.96290.95070.95850.97081.0022
AQI 0.96960.97461.05071.01351.06041.0711.03831.07141.03671.0884
SGI 1.04191.01550.96931.05681.06911.00420.96090.93310.9211.02
DEPI 1.03691.06361.03190.97440.89810.82450.79110.83410.93531.0653
SGAI 1.07261.07451.11781.00231.0041.05281.0651.07361.06921.046
LVGI 0.94851.03240.97461.02381.00630.91770.95380.98921.04461.3462
TATA -0.0787-0.0577-0.0482-0.02270.016-0.00840.0024-0.0189-0.0571-0.0277
M-score -2.93-2.77-2.72-2.57-2.17-2.35-2.40-2.47-2.88-2.46
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK