Adecoagro (BUE:ADGO) Beneish M-Score : -2.92 (As of May. 12, 2024)

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What is Adecoagro 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 -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BUE:ADGO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22 Med: -2.82 Max: -2.68
Current: -2.92

During the past 13 years, the highest Beneish M-Score of Adecoagro was -2.68. The lowest was -3.22. And the median was -2.82.

Adecoagro Beneish M-Score Historical Data

The historical data trend for Adecoagro'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.

Adecoagro Beneish M-Score Chart

Adecoagro Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.03

-2.68

-2.71

-2.78

-2.92

Adecoagro 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															-2.78	-2.96	-2.77	-3.05	-2.92

Competitive Comparison of Adecoagro's Beneish M-Score

For the Farm Products subindustry, Adecoagro'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.

Adecoagro's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Adecoagro's Beneish M-Score distribution charts can be found below:

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

Adecoagro 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 Adecoagro 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 * 1.0298

0.528 * 1.118

0.404 * 0.9372

0.892 * 2.0385

0.115 * 0.9503

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0673

4.679 * -0.101117

0.327 * 0.9167

-1.95

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ARS46,671 Mil.
Revenue was 95284.506 + 135008.614 + 96689.519 + 48648.269 = ARS375,631 Mil.
Gross Profit was 12463.164 + 45340.223 + 33397.92 + 22153.85 = ARS113,355 Mil.
Total Current Assets was ARS381,098 Mil.
Total Assets was ARS1,142,527 Mil.
Property, Plant and Equipment(Net PPE) was ARS706,216 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS80,977 Mil.
Selling, General, & Admin. Expense(SGA) was ARS51,472 Mil.
Total Current Liabilities was ARS178,539 Mil.
Long-Term Debt & Capital Lease Obligation was ARS369,452 Mil.
Net Income was 29798.384 + 26564.705 + 11104.32 + 4260.956 = ARS71,728 Mil.
Non Operating Income was 34560.696 + 1466.291 + -145.68 + -658.829 = ARS35,222 Mil.
Cash Flow from Operations was 64152.588 + 76119.376 + 22177.68 + -10415.429 = ARS152,034 Mil.

Total Receivables was ARS22,233 Mil.
Revenue was 62302.762 + 53643.453 + 46167.373 + 22157.727 = ARS184,271 Mil.
Gross Profit was 18915.446 + 17506.866 + 12937.4 + 12808.198 = ARS62,168 Mil.
Total Current Assets was ARS171,510 Mil.
Total Assets was ARS521,200 Mil.
Property, Plant and Equipment(Net PPE) was ARS322,816 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS34,978 Mil.
Selling, General, & Admin. Expense(SGA) was ARS23,658 Mil.
Total Current Liabilities was ARS103,109 Mil.
Long-Term Debt & Capital Lease Obligation was ARS169,583 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)
	=	(46671.163 / 375630.908)	/	(22232.736 / 184271.315)
	=	0.124247	/	0.120652
	=	1.0298

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)
	=	(62167.91 / 184271.315)	/	(113355.157 / 375630.908)
	=	0.337372	/	0.301773
	=	1.118

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 - (381098.314 + 706216.359) / 1142526.735)	/	(1 - (171509.634 + 322816.101) / 521199.526)
	=	0.048325	/	0.051561
	=	0.9372

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
	=	375630.908	/	184271.315
	=	2.0385

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))
	=	(34977.744 / (34977.744 + 322816.101))	/	(80976.745 / (80976.745 + 706216.359))
	=	0.097759	/	0.102868
	=	0.9503

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)
	=	(51472.27 / 375630.908)	/	(23658.406 / 184271.315)
	=	0.137029	/	0.128389
	=	1.0673

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)
	=	((369451.732 + 178539.048) / 1142526.735)	/	((169583.335 + 103109.441) / 521199.526)
	=	0.479631	/	0.523202
	=	0.9167

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
	=	(71728.365 - 35222.478	-	152034.215)	/	1142526.735
	=	-0.101117

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.

Adecoagro has a M-score of -1.95 suggests that the company is unlikely to be a manipulator.

Adecoagro Beneish M-Score Related Terms

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Adecoagro (BUE:ADGO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Adecoagro SA (BUE:ADGO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AGRO:USA ACD:Germany

Address

6, Rue Eugene Ruppert, Vertigo Naos Building, Luxembourg, LUX, L-2453

Website

https://www.adecoagro.com

Adecoagro SA is a Luxembourg-based agricultural company. It is involved in a wide range of businesses, including farming crops and other agricultural products, dairy operations, sugar, ethanol, energy production, and land transformation. The company operates through three segments namely Farming, Sugar, Ethanol and Energy, and Land Transformation. The Farming segment consists of planting, harvesting, and sale of grains, oilseeds and fibers, rice, and production and sale of dairy products; the Sugar, Ethanol, and Energy segment consists of cultivating sugar cane which is processed in owned sugar mills, transformed into ethanol; and the Land Transformation segment comprises identification and acquisition of underdeveloped and undermanaged farmland.