Digistar Bhd (XKLS:0029) Beneish M-Score : -2.85 (As of May. 18, 2024)

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What is Digistar Bhd 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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:0029' s Beneish M-Score Range Over the Past 10 Years
Min: -4.8 Med: -2.08 Max: 11.27
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Digistar Bhd was 11.27. The lowest was -4.80. And the median was -2.08.

Digistar Bhd Beneish M-Score Historical Data

The historical data trend for Digistar Bhd'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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Digistar Bhd Beneish M-Score Chart

Digistar Bhd Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

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-2.47

-2.22

-2.86

-2.78

-2.77

Digistar Bhd 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															-2.61	-2.66	-2.57	-2.77	-2.85

Competitive Comparison of Digistar Bhd's Beneish M-Score

For the Conglomerates subindustry, Digistar Bhd'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.

Digistar Bhd's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Digistar Bhd's Beneish M-Score distribution charts can be found below:

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

Digistar Bhd 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 Digistar Bhd 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 * 1.2748

0.528 * 0.9234

0.404 * 0.9788

0.892 * 0.8567

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2965

4.679 * -0.087344

0.327 * 0.964

-2.85

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was RM27.47 Mil.
Revenue was 11.358 + 11.385 + 10.726 + 11.434 = RM44.90 Mil.
Gross Profit was 7.887 + 8.301 + 8.815 + 6.607 = RM31.61 Mil.
Total Current Assets was RM86.00 Mil.
Total Assets was RM313.59 Mil.
Property, Plant and Equipment(Net PPE) was RM72.72 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.00 Mil.
Selling, General, & Admin. Expense(SGA) was RM17.16 Mil.
Total Current Liabilities was RM50.53 Mil.
Long-Term Debt & Capital Lease Obligation was RM186.67 Mil.
Net Income was -0.224 + -1.95 + -0.252 + -0.026 = RM-2.45 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.00 Mil.
Cash Flow from Operations was 3.815 + 12.403 + 2.206 + 6.514 = RM24.94 Mil.

Total Receivables was RM25.15 Mil.
Revenue was 14.068 + 16.843 + 11.765 + 9.736 = RM52.41 Mil.
Gross Profit was 8.927 + 10.638 + 7.706 + 6.797 = RM34.07 Mil.
Total Current Assets was RM85.48 Mil.
Total Assets was RM325.10 Mil.
Property, Plant and Equipment(Net PPE) was RM75.58 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.00 Mil.
Selling, General, & Admin. Expense(SGA) was RM15.45 Mil.
Total Current Liabilities was RM53.24 Mil.
Long-Term Debt & Capital Lease Obligation was RM201.86 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)
	=	(27.471 / 44.903)	/	(25.152 / 52.412)
	=	0.611785	/	0.47989
	=	1.2748

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)
	=	(34.068 / 52.412)	/	(31.61 / 44.903)
	=	0.650004	/	0.703962
	=	0.9234

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 - (85.999 + 72.719) / 313.588)	/	(1 - (85.483 + 75.58) / 325.096)
	=	0.493865	/	0.504568
	=	0.9788

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
	=	44.903	/	52.412
	=	0.8567

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))
	=	(0 / (0 + 75.58))	/	(0 / (0 + 72.719))
	=	0	/	0
	=	1

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)
	=	(17.159 / 44.903)	/	(15.448 / 52.412)
	=	0.382135	/	0.294742
	=	1.2965

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)
	=	((186.672 + 50.529) / 313.588)	/	((201.861 + 53.237) / 325.096)
	=	0.75641	/	0.784685
	=	0.964

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
	=	(-2.452 - 0	-	24.938)	/	313.588
	=	-0.087344

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.

Digistar Bhd has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.

Digistar Bhd Beneish M-Score Related Terms

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Digistar Bhd (XKLS:0029) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Digistar Corp Bhd (XKLS:0029) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Jalan Ampang Utama 1/2, B6/4/4, 3rd Floor, One Ampang Business Avenue, Ampang, SGR, MYS, 68000

Website

https://www.digistar.com.my

Digistar Corp Bhd is an investment holding company. It operates through the following segments: System integration segment, Investment holding segment, Rental, and hotel segment, Concession segment, and Property development segment. The Systems Integration segment is involved in the design, supply, installation, and integration of information technology infrastructure, teleconferencing, local area networks, interactive media management systems, radio & television news automation, and other related electronic systems. The Concession segment includes concession arrangements between the Group and the Grantor for the privatization of the design, development, construction, and completion of the Facilities. It operates in a single geographical segment, which is Malaysia.

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