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EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) Beneish M-Score : -1.86 (As of Dec. 15, 2024)


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What is EZ TEC Empreendimentos e Participacoes 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 -1.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for EZ TEC Empreendimentos e Participacoes's Beneish M-Score or its related term are showing as below:

BSP:EZTC3' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.08   Max: -1.36
Current: -1.86

During the past 13 years, the highest Beneish M-Score of EZ TEC Empreendimentos e Participacoes was -1.36. The lowest was -2.91. And the median was -2.08.


EZ TEC Empreendimentos e Participacoes Beneish M-Score Historical Data

The historical data trend for EZ TEC Empreendimentos e Participacoes'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.

* Premium members only.

EZ TEC Empreendimentos e Participacoes Beneish M-Score Chart

EZ TEC Empreendimentos e Participacoes Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.51 -1.85 -1.79 -1.98 -2.28

EZ TEC Empreendimentos e Participacoes Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.04 -2.28 -2.35 -2.18 -1.86

Competitive Comparison of EZ TEC Empreendimentos e Participacoes's Beneish M-Score

For the Real Estate - Development subindustry, EZ TEC Empreendimentos e Participacoes'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.


EZ TEC Empreendimentos e Participacoes's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, EZ TEC Empreendimentos e Participacoes's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where EZ TEC Empreendimentos e Participacoes's Beneish M-Score falls into.



EZ TEC Empreendimentos e Participacoes 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 EZ TEC Empreendimentos e Participacoes for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0549+0.528 * 0.8852+0.404 * 1.0033+0.892 * 1.3937+0.115 * 0.7601
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7331+4.679 * 0.062242-0.327 * 1.088
=-1.86

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was R$429 Mil.
Revenue was 478.869 + 415.924 + 239.186 + 337.929 = R$1,472 Mil.
Gross Profit was 162.684 + 128.326 + 81.709 + 112.508 = R$485 Mil.
Total Current Assets was R$2,836 Mil.
Total Assets was R$6,356 Mil.
Property, Plant and Equipment(Net PPE) was R$36 Mil.
Depreciation, Depletion and Amortization(DDA) was R$32 Mil.
Selling, General, & Admin. Expense(SGA) was R$188 Mil.
Total Current Liabilities was R$245 Mil.
Long-Term Debt & Capital Lease Obligation was R$1,081 Mil.
Net Income was 132.587 + 88.664 + 56.706 + 82.798 = R$361 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -12.615 + -56.452 + 46.997 + -12.77 = R$-35 Mil.
Total Receivables was R$292 Mil.
Revenue was 251.727 + 242.732 + 250.784 + 310.897 = R$1,056 Mil.
Gross Profit was 81.325 + 78.581 + 71.285 + 76.99 = R$308 Mil.
Total Current Assets was R$2,610 Mil.
Total Assets was R$5,839 Mil.
Property, Plant and Equipment(Net PPE) was R$39 Mil.
Depreciation, Depletion and Amortization(DDA) was R$22 Mil.
Selling, General, & Admin. Expense(SGA) was R$184 Mil.
Total Current Liabilities was R$503 Mil.
Long-Term Debt & Capital Lease Obligation was R$616 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)
=(428.979 / 1471.908) / (291.797 / 1056.14)
=0.291444 / 0.276286
=1.0549

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)
=(308.181 / 1056.14) / (485.227 / 1471.908)
=0.291799 / 0.329659
=0.8852

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 - (2836.26 + 35.927) / 6355.755) / (1 - (2609.601 + 39.422) / 5838.676)
=0.548097 / 0.546297
=1.0033

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
=1471.908 / 1056.14
=1.3937

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))
=(22.215 / (22.215 + 39.422)) / (32.396 / (32.396 + 35.927))
=0.360417 / 0.47416
=0.7601

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)
=(188.272 / 1471.908) / (184.282 / 1056.14)
=0.12791 / 0.174486
=0.7331

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)
=((1080.885 + 244.815) / 6355.755) / ((616.19 + 503.128) / 5838.676)
=0.208583 / 0.191708
=1.088

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
=(360.755 - 0 - -34.84) / 6355.755
=0.062242

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.

EZ TEC Empreendimentos e Participacoes has a M-score of -1.86 suggests that the company is unlikely to be a manipulator.


EZ TEC Empreendimentos e Participacoes Beneish M-Score Related Terms

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EZ TEC Empreendimentos e Participacoes Business Description

Traded in Other Exchanges
N/A
Address
Avenida Republica do Libano, 1921, Sao Paulo, SP, BRA, 04501002
EZ TEC Empreendimentos e Participacoes SA is a real estate development company that operates out of Brazil. The company and its subsidiaries engage in the development & sale of real estate, the management & lease of its own properties, land allotment, construction of condominiums, and services related to projects. The company defines its operations to include two revenue generating segments: commercial projects and residential projects. A majority of revenue is derived from the residential project segment, while a smaller portion is derived from the commercial projects segment. The company earns majority of its revenue in Brazil.

EZ TEC Empreendimentos e Participacoes Headlines

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