Comms Group (ASX:CCG) Beneish M-Score : -2.76 (As of Apr. 05, 2025)

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What is Comms Group 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:CCG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.69 Max: -1.46
Current: -2.76

During the past 7 years, the highest Beneish M-Score of Comms Group was -1.46. The lowest was -2.77. And the median was -2.69.

Comms Group Beneish M-Score Historical Data

The historical data trend for Comms Group'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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Comms Group Beneish M-Score Chart

Comms Group Annual Data

Trend

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-2.20

-1.46

-2.69

-2.77

-2.76

Comms Group Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial										-	-2.77	-	-2.76	-

Competitive Comparison of Comms Group's Beneish M-Score

For the Information Technology Services subindustry, Comms Group'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.

Comms Group's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Comms Group's Beneish M-Score distribution charts can be found below:

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

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Comms Group 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 Comms Group 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 * 1.0284

0.528 * 0.9836

0.404 * 0.9657

0.892 * 1.0682

0.115 * 0.8418

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9066

4.679 * -0.076423

0.327 * 0.9667

-2.76

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was A$6.12 Mil.
Revenue was A$55.46 Mil.
Gross Profit was A$26.33 Mil.
Total Current Assets was A$11.62 Mil.
Total Assets was A$56.45 Mil.
Property, Plant and Equipment(Net PPE) was A$1.74 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3.38 Mil.
Selling, General, & Admin. Expense(SGA) was A$19.29 Mil.
Total Current Liabilities was A$17.08 Mil.
Long-Term Debt & Capital Lease Obligation was A$1.25 Mil.
Net Income was A$-0.10 Mil.
Gross Profit was A$0.16 Mil.
Cash Flow from Operations was A$4.06 Mil.

Total Receivables was A$5.57 Mil.
Revenue was A$51.92 Mil.
Gross Profit was A$24.24 Mil.
Total Current Assets was A$9.62 Mil.
Total Assets was A$57.67 Mil.
Property, Plant and Equipment(Net PPE) was A$2.47 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3.09 Mil.
Selling, General, & Admin. Expense(SGA) was A$19.92 Mil.
Total Current Liabilities was A$9.90 Mil.
Long-Term Debt & Capital Lease Obligation was A$9.48 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)
	=	(6.122 / 55.461)	/	(5.573 / 51.92)
	=	0.110384	/	0.107338
	=	1.0284

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)
	=	(24.243 / 51.92)	/	(26.327 / 55.461)
	=	0.46693	/	0.474694
	=	0.9836

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 - (11.623 + 1.74) / 56.449)	/	(1 - (9.615 + 2.473) / 57.671)
	=	0.763273	/	0.790397
	=	0.9657

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
	=	55.461	/	51.92
	=	1.0682

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))
	=	(3.09 / (3.09 + 2.473))	/	(3.375 / (3.375 + 1.74))
	=	0.555456	/	0.659824
	=	0.8418

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)
	=	(19.291 / 55.461)	/	(19.919 / 51.92)
	=	0.34783	/	0.383648
	=	0.9066

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)
	=	((1.253 + 17.08) / 56.449)	/	((9.478 + 9.898) / 57.671)
	=	0.324771	/	0.335975
	=	0.9667

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
	=	(-0.103 - 0.155	-	4.056)	/	56.449
	=	-0.076423

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.

Comms Group has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Comms Group Beneish M-Score Related Terms

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Comms Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Comms Group Ltd (ASX:CCG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

45 Clarence Street, Level 3, Sydney, NSW, AUS, 2000

Website

https://www.commsgroup.limited

Comms Group Ltd is an information and communication technology (ICT) business, providing a comprehensive vendor-agnostic ICT managed service. The company's segment includes Global; SME and ICT. It generates revenue from Voice; Data and Managed service. Geographically, It derives revenue from Australia. The company's product categories include Connect; Collaborate and Manage. The company generates the majority of its revenue from the SME segment.