Gulf Pharmaceutical Industries PSC (ADX:JULPHAR) Beneish M-Score : -2.94 (As of Apr. 25, 2024)

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What is Gulf Pharmaceutical Industries PSC 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Gulf Pharmaceutical Industries PSC's Beneish M-Score or its related term are showing as below:

ADX:JULPHAR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.58 Med: -2.4 Max: -1.93
Current: -2.94

During the past 13 years, the highest Beneish M-Score of Gulf Pharmaceutical Industries PSC was -1.93. The lowest was -4.58. And the median was -2.40.

Gulf Pharmaceutical Industries PSC Beneish M-Score Historical Data

The historical data trend for Gulf Pharmaceutical Industries PSC'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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Gulf Pharmaceutical Industries PSC Beneish M-Score Chart

Gulf Pharmaceutical Industries PSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.58

-3.17

-2.17

-2.51

-2.94

Gulf Pharmaceutical Industries PSC 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															-2.51	-2.45	-2.55	-2.81	-2.94

Competitive Comparison of Gulf Pharmaceutical Industries PSC's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Gulf Pharmaceutical Industries PSC'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.

Gulf Pharmaceutical Industries PSC's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Gulf Pharmaceutical Industries PSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Gulf Pharmaceutical Industries PSC's Beneish M-Score falls into.

Gulf Pharmaceutical Industries PSC 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 Gulf Pharmaceutical Industries PSC 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 * 0.9569

0.528 * 1.0305

0.404 * 0.867

0.892 * 1.0136

0.115 * 0.8968

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9427

4.679 * -0.077958

0.327 * 1.0967

-2.94

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ547 Mil.
Revenue was 412.6 + 366 + 405.3 + 454.1 = د.إ1,638 Mil.
Gross Profit was 204.7 + 101.2 + 104.5 + 138.3 = د.إ549 Mil.
Total Current Assets was د.إ1,581 Mil.
Total Assets was د.إ2,454 Mil.
Property, Plant and Equipment(Net PPE) was د.إ709 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ142 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ187 Mil.
Total Current Liabilities was د.إ699 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ857 Mil.
Net Income was -15.7 + -39.3 + -41.2 + -2.9 = د.إ-99 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 113.6 + 1 + -29.6 + 7.2 = د.إ92 Mil.

Total Receivables was د.إ564 Mil.
Revenue was 361.8 + 415.8 + 419.9 + 418.6 = د.إ1,616 Mil.
Gross Profit was 158.8 + 124.7 + 143.8 + 130.6 = د.إ558 Mil.
Total Current Assets was د.إ1,463 Mil.
Total Assets was د.إ2,399 Mil.
Property, Plant and Equipment(Net PPE) was د.إ752 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ132 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ196 Mil.
Total Current Liabilities was د.إ599 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ789 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)
	=	(547.1 / 1638)	/	(564.1 / 1616.1)
	=	0.334005	/	0.34905
	=	0.9569

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)
	=	(557.9 / 1616.1)	/	(548.7 / 1638)
	=	0.345214	/	0.334982
	=	1.0305

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 - (1581.3 + 709.1) / 2453.9)	/	(1 - (1462.7 + 752.3) / 2399.4)
	=	0.066629	/	0.076853
	=	0.867

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
	=	1638	/	1616.1
	=	1.0136

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))
	=	(132 / (132 + 752.3))	/	(141.6 / (141.6 + 709.1))
	=	0.149271	/	0.166451
	=	0.8968

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)
	=	(186.8 / 1638)	/	(195.5 / 1616.1)
	=	0.114042	/	0.12097
	=	0.9427

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)
	=	((856.6 + 699.1) / 2453.9)	/	((788.5 + 598.5) / 2399.4)
	=	0.63397	/	0.578061
	=	1.0967

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
	=	(-99.1 - 0	-	92.2)	/	2453.9
	=	-0.077958

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.

Gulf Pharmaceutical Industries PSC has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

Gulf Pharmaceutical Industries PSC Beneish M-Score Related Terms

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Gulf Pharmaceutical Industries PSC (ADX:JULPHAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Gulf Pharmaceutical Industries PSC (ADX:JULPHAR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road, P.O. Box 997, Digdaga, Ras Al Khaimah, ARE

Website

https://www.julphar.net

Gulf Pharmaceutical Industries PSC is a generic pharmaceutical manufacturer in the Middle East and North Africa. The company manufactures and sells pharmaceuticals and medical compounds, including cosmetics compounds, and drugs. It operates in four segments: Manufacturing, Planet, Investments, and others. It maintains a diverse product portfolio that targets various therapeutic segments including Gastrointestinal Tract (GIT), Respiratory, Pain Management, Wounds & Scars, Anti-infectives, Anemia, Gynecology, Dermatology, Erectile Dysfunction, and Cardiology. The geographical segments are UAE, Other GCC countries, and Other countries.

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