Bellevue Group AG (XSWX:BBNEE) Beneish M-Score : -2.52 (As of May. 25, 2024)

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What is Bellevue Group AG Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSWX:BBNEE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.56 Med: -2.62 Max: -1.87
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Bellevue Group AG was -1.87. The lowest was -4.56. And the median was -2.62.

Bellevue Group AG 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 Bellevue Group AG 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 * 0.8385

0.528 * 1.1233

0.404 * 0.9956

0.892 * 0.7844

0.115 * 0.9942

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3381

4.679 * 0.040741

0.327 * 0.9442

-2.61

* 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.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was CHF6.88 Mil.
Revenue was CHF84.59 Mil.
Gross Profit was CHF43.85 Mil.
Total Current Assets was CHF0.00 Mil.
Total Assets was CHF155.54 Mil.
Property, Plant and Equipment(Net PPE) was CHF4.19 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF3.66 Mil.
Selling, General, & Admin. Expense(SGA) was CHF10.12 Mil.
Total Current Liabilities was CHF0.00 Mil.
Long-Term Debt & Capital Lease Obligation was CHF1.36 Mil.
Net Income was CHF15.22 Mil.
Gross Profit was CHF0.00 Mil.
Cash Flow from Operations was CHF8.89 Mil.

Total Receivables was CHF10.46 Mil.
Revenue was CHF107.85 Mil.
Gross Profit was CHF62.80 Mil.
Total Current Assets was CHF0.00 Mil.
Total Assets was CHF185.21 Mil.
Property, Plant and Equipment(Net PPE) was CHF4.19 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF3.62 Mil.
Selling, General, & Admin. Expense(SGA) was CHF9.64 Mil.
Total Current Liabilities was CHF0.00 Mil.
Long-Term Debt & Capital Lease Obligation was CHF1.72 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)
	=	(6.877 / 84.593)	/	(10.456 / 107.846)
	=	0.081295	/	0.096953
	=	0.8385

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)
	=	(62.795 / 107.846)	/	(43.85 / 84.593)
	=	0.582265	/	0.518364
	=	1.1233

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 - (0 + 4.186) / 155.543)	/	(1 - (0 + 4.187) / 185.211)
	=	0.973088	/	0.977393
	=	0.9956

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
	=	84.593	/	107.846
	=	0.7844

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))
	=	(3.624 / (3.624 + 4.187))	/	(3.663 / (3.663 + 4.186))
	=	0.463961	/	0.466684
	=	0.9942

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)
	=	(10.12 / 84.593)	/	(9.642 / 107.846)
	=	0.119632	/	0.089405
	=	1.3381

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)
	=	((1.364 + 0) / 155.543)	/	((1.72 + 0) / 185.211)
	=	0.008769	/	0.009287
	=	0.9442

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
	=	(15.223 - 0	-	8.886)	/	155.543
	=	0.040741

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.

Bellevue Group AG has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

Bellevue Group AG Beneish M-Score Related Terms

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Bellevue Group AG (XSWX:BBNEE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Bellevue Group AG (XSWX:BBNEE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BBNz:UK BBN:Switzerland

Address

Seestrasse 16, Kusnacht, Zurich, CHE, CH-8700

Website

https://www.bellevue.ch

Bellevue Group AG is a Switzerland based company operating in the finance industry. It is principally engaged in the field of asset management and wealth management. The business operates in one segment. The segment consists of the operating business units Bellevue Asset Management, StarCapital and Bellevue Private Markets. It has a clear focus on managing equity portfolios for selected sector and regional strategies. Bellevue Asset Management has a clear focus on managing equity portfolios for selected sector and regional strategies, based on a fundamental and research-driven stock picking approach («bottom up»). A small part of the product range pursues a holistic asset management approach based on quantitative and experience-driven investment approaches with pronounced anti-cyclicality.