Hubify (ASX:HFY) Beneish M-Score : -2.31 (As of Dec. 12, 2024)

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What is Hubify 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:HFY' s Beneish M-Score Range Over the Past 10 Years
Min: -5.43 Med: -2.61 Max: 1.88
Current: -2.31

During the past 8 years, the highest Beneish M-Score of Hubify was 1.88. The lowest was -5.43. And the median was -2.61.

Hubify Beneish M-Score Historical Data

The historical data trend for Hubify'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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Hubify Beneish M-Score Chart

Hubify Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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1.88

-2.69

-2.53

-3.52

-2.31

Hubify Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial										-2.53	-	-3.52	-	-2.31

Competitive Comparison of Hubify's Beneish M-Score

For the Telecom Services subindustry, Hubify'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.

Hubify's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Hubify's Beneish M-Score distribution charts can be found below:

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

Hubify 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 Hubify 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 * 1.0571

0.528 * 1.2962

0.404 * 1.121

0.892 * 0.7646

0.115 * 0.9154

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0051

4.679 * 0.028436

0.327 * 0.9976

-2.31

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was A$1.43 Mil.
Revenue was A$19.72 Mil.
Gross Profit was A$11.12 Mil.
Total Current Assets was A$4.84 Mil.
Total Assets was A$12.24 Mil.
Property, Plant and Equipment(Net PPE) was A$1.11 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.65 Mil.
Selling, General, & Admin. Expense(SGA) was A$11.36 Mil.
Total Current Liabilities was A$3.05 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.91 Mil.
Net Income was A$-4.72 Mil.
Gross Profit was A$-3.11 Mil.
Cash Flow from Operations was A$-1.96 Mil.

Total Receivables was A$1.77 Mil.
Revenue was A$25.79 Mil.
Gross Profit was A$18.85 Mil.
Total Current Assets was A$9.37 Mil.
Total Assets was A$20.12 Mil.
Property, Plant and Equipment(Net PPE) was A$1.53 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.85 Mil.
Selling, General, & Admin. Expense(SGA) was A$14.79 Mil.
Total Current Liabilities was A$5.27 Mil.
Long-Term Debt & Capital Lease Obligation was A$1.26 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)
	=	(1.429 / 19.721)	/	(1.768 / 25.792)
	=	0.072461	/	0.068548
	=	1.0571

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)
	=	(18.852 / 25.792)	/	(11.121 / 19.721)
	=	0.730924	/	0.563917
	=	1.2962

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 - (4.841 + 1.11) / 12.238)	/	(1 - (9.369 + 1.533) / 20.124)
	=	0.513728	/	0.458259
	=	1.121

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
	=	19.721	/	25.792
	=	0.7646

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))
	=	(1.849 / (1.849 + 1.533))	/	(1.646 / (1.646 + 1.11))
	=	0.546718	/	0.597242
	=	0.9154

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)
	=	(11.363 / 19.721)	/	(14.786 / 25.792)
	=	0.576188	/	0.573279
	=	1.0051

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)
	=	((0.911 + 3.054) / 12.238)	/	((1.263 + 5.273) / 20.124)
	=	0.323991	/	0.324786
	=	0.9976

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
	=	(-4.721 - -3.11	-	-1.959)	/	12.238
	=	0.028436

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.

Hubify has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.

Hubify Beneish M-Score Related Terms

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Hubify Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Hubify Ltd (ASX:HFY) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

65 Epping Road, Suite 1.01, Level 1, Macquarie Park, Sydney, NSW, AUS, 2113

Website

https://www.hubify.com.au

Hubify Ltd is a provider of telecommunications, information technology, and managed services to Australian businesses. The company is engaged in the sale, customization, management, maintenance, and integration of IT and telecommunications systems. It is also engaged in internet-based selling of hardware and software products. It provides various services such as password management, desktop anti-virus, desktop patch management, office 365 backup, managed desktops and networks, cyber audits, and others. The company's primary business segment is telecommunications namely voice, data, and value-added services.

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