Kosmos Energy (STU:KOS1) Beneish M-Score : -2.50 (As of May. 01, 2024)

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What is Kosmos Energy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Kosmos Energy's Beneish M-Score or its related term are showing as below:

STU:KOS1' s Beneish M-Score Range Over the Past 10 Years
Min: -11.47 Med: -2.59 Max: 3.06
Current: -2.5

During the past 13 years, the highest Beneish M-Score of Kosmos Energy was 3.06. The lowest was -11.47. And the median was -2.59.

Kosmos Energy Beneish M-Score Historical Data

The historical data trend for Kosmos Energy's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Kosmos Energy Beneish M-Score Chart

Kosmos Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.77

-11.47

-2.11

-2.67

-2.50

Kosmos Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.67	-3.04	-3.19	-2.49	-2.50

Competitive Comparison of Kosmos Energy's Beneish M-Score

For the Oil & Gas E&P subindustry, Kosmos Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kosmos Energy's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kosmos Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kosmos Energy's Beneish M-Score falls into.

Kosmos Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Kosmos Energy for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.3194

0.528 * 1.1775

0.404 * 1.2264

0.892 * 0.7424

0.115 * 1.1765

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.221

4.679 * -0.0615

0.327 * 0.9863

-2.53

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €111 Mil.
Revenue was 465.621 + 493.188 + 252.214 + 368.22 = €1,579 Mil.
Gross Profit was 266.546 + 239.14 + 110.541 + 187.669 = €804 Mil.
Total Current Assets was €388 Mil.
Total Assets was €4,528 Mil.
Property, Plant and Equipment(Net PPE) was €3,815 Mil.
Depreciation, Depletion and Amortization(DDA) was €422 Mil.
Selling, General, & Admin. Expense(SGA) was €92 Mil.
Total Current Liabilities was €509 Mil.
Long-Term Debt & Capital Lease Obligation was €2,192 Mil.
Net Income was 19.881 + 79.818 + 21.547 + 77.811 = €199 Mil.
Non Operating Income was -179.556 + -50.221 + -7.153 + 4.252 = €-233 Mil.
Cash Flow from Operations was 269.393 + 233.717 + 16.716 + 190.399 = €710 Mil.

Total Receivables was €113 Mil.
Revenue was 481.361 + 460.617 + 586.868 + 598.386 = €2,127 Mil.
Gross Profit was 257.551 + 290.245 + 386.441 + 340.811 = €1,275 Mil.
Total Current Assets was €442 Mil.
Total Assets was €4,324 Mil.
Property, Plant and Equipment(Net PPE) was €3,627 Mil.
Depreciation, Depletion and Amortization(DDA) was €482 Mil.
Selling, General, & Admin. Expense(SGA) was €102 Mil.
Total Current Liabilities was €542 Mil.
Long-Term Debt & Capital Lease Obligation was €2,073 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(110.712 / 1579.243)	/	(113.03 / 2127.232)
	=	0.070104	/	0.053135
	=	1.3194

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)
	=	(1275.048 / 2127.232)	/	(803.896 / 1579.243)
	=	0.599393	/	0.509039
	=	1.1775

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (387.628 + 3814.93) / 4528.269)	/	(1 - (442.473 + 3627.459) / 4323.509)
	=	0.071928	/	0.058651
	=	1.2264

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1579.243	/	2127.232
	=	0.7424

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(481.788 / (481.788 + 3627.459))	/	(422.249 / (422.249 + 3814.93))
	=	0.117245	/	0.099653
	=	1.1765

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(92.41 / 1579.243)	/	(101.945 / 2127.232)
	=	0.058515	/	0.047924
	=	1.221

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2192.468 + 508.779) / 4528.269)	/	((2072.94 + 542.096) / 4323.509)
	=	0.59653	/	0.604841
	=	0.9863

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
	=	(199.057 - -232.678	-	710.225)	/	4528.269
	=	-0.0615

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Kosmos Energy has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.

Kosmos Energy Beneish M-Score Related Terms

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Kosmos Energy (STU:KOS1) Business Description

Industry

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Traded in Other Exchanges

KOS:USA KOSl:UK KOS:UK KOS1:Germany

Address

C/O Kosmos Energy LLC, 8176 Park Lane, Suite 500, Dallas, TX, USA, 75231

Website

https://www.kosmosenergy.com

Kosmos Energy Ltd is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The company focuses on field developments designed to accelerate production. Kosmos' exploration is tied to a geologically based approach geared toward the identification of petroleum systems. Its process starts with geologic studies that assess a region's subsurface but also incorporates basin modeling as well as techniques to identify reservoir/seal pair development and trap definition. In addition, a 3D seismic analysis is done to identify prospective traps of interest. In tandem with the subsurface analysis, a country-specific analysis is done to get an understanding of above-ground dynamics before targeting specific licenses.

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