Ferrum de Ceramica y Metalurgica (BUE:FERR) Beneish M-Score

: 0.12 (As of Today)

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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.

Warning Sign:

Beneish M-Score 0.12 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Ferrum de Ceramica y Metalurgica's Beneish M-Score or its related term are showing as below:

BUE:FERR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46 Med: -1.9 Max: 0.22
Current: 0.12

During the past 13 years, the highest Beneish M-Score of Ferrum de Ceramica y Metalurgica was 0.22. The lowest was -3.46. And the median was -1.90.

Ferrum de Ceramica y Metalurgica Beneish M-Score Historical Data

The historical data trend for Ferrum de Ceramica y Metalurgica'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.

Ferrum de Ceramica y Metalurgica Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-2.00

-2.43

-1.93

-0.55

-1.48

Ferrum de Ceramica y Metalurgica 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															-1.06	-1.08	-1.48	0.22	0.12

Competitive Comparison

For the Building Products & Equipment subindustry, Ferrum de Ceramica y Metalurgica'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.

Ferrum de Ceramica y Metalurgica Beneish M-Score Distribution

For the Construction industry and Industrials sector, Ferrum de Ceramica y Metalurgica's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ferrum de Ceramica y Metalurgica's Beneish M-Score falls into.

Ferrum de Ceramica y Metalurgica 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 Ferrum de Ceramica y Metalurgica 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 * 2.8867

0.528 * 0.9508

0.404 * 1.2105

0.892 * 0.8879

0.115 * 4.459

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6517

4.679 * 0.100905

0.327 * 1.0867

0.12

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ARS8,578 Mil.
Revenue was 20665.763 + 12846.506 + 15548.949 + 6961.9 = ARS56,023 Mil.
Gross Profit was 9583.33 + 5981.328 + 8170.87 + 3339.828 = ARS27,075 Mil.
Total Current Assets was ARS69,616 Mil.
Total Assets was ARS102,343 Mil.
Property, Plant and Equipment(Net PPE) was ARS31,059 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,273 Mil.
Selling, General, & Admin. Expense(SGA) was ARS9,663 Mil.
Total Current Liabilities was ARS26,321 Mil.
Long-Term Debt & Capital Lease Obligation was ARS2,942 Mil.
Net Income was 1895.522 + 1637.367 + 1731.182 + 848.639 = ARS6,113 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was 2185.482 + -3489.56 + 678.923 + -3589.125 = ARS-4,214 Mil.

Total Receivables was ARS3,347 Mil.
Revenue was 19370.716 + 17244.107 + 17784.65 + 8697.311 = ARS63,097 Mil.
Gross Profit was 8457.821 + 7978.897 + 8430.614 + 4127.552 = ARS28,995 Mil.
Total Current Assets was ARS20,840 Mil.
Total Assets was ARS30,651 Mil.
Property, Plant and Equipment(Net PPE) was ARS9,399 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS2,002 Mil.
Selling, General, & Admin. Expense(SGA) was ARS16,700 Mil.
Total Current Liabilities was ARS6,778 Mil.
Long-Term Debt & Capital Lease Obligation was ARS1,287 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)
	=	(8577.876 / 56023.118)	/	(3346.663 / 63096.784)
	=	0.153113	/	0.05304
	=	2.8867

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)
	=	(28994.884 / 63096.784)	/	(27075.356 / 56023.118)
	=	0.45953	/	0.483289
	=	0.9508

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 - (69616.158 + 31058.641) / 102343.463)	/	(1 - (20839.77 + 9398.506) / 30651.16)
	=	0.016305	/	0.01347
	=	1.2105

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
	=	56023.118	/	63096.784
	=	0.8879

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))
	=	(2002.264 / (2002.264 + 9398.506))	/	(1273.455 / (1273.455 + 31058.641))
	=	0.175625	/	0.039387
	=	4.459

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)
	=	(9662.841 / 56023.118)	/	(16699.692 / 63096.784)
	=	0.17248	/	0.264668
	=	0.6517

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)
	=	((2941.953 + 26320.936) / 102343.463)	/	((1286.866 + 6777.76) / 30651.16)
	=	0.285928	/	0.26311
	=	1.0867

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
	=	(6112.71 - 0	-	-4214.28)	/	102343.463
	=	0.100905

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.

Ferrum de Ceramica y Metalurgica has a M-score of 0.12 signals that the company is likely to be a manipulator.

Ferrum de Ceramica y Metalurgica Beneish M-Score Related Terms

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Ferrum de Ceramica y Metalurgica (BUE:FERR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ferrum SA de Ceramica y Metalurgica (BUE:FERR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Balcarce 880, Buenos Aires, ARG

Website

https://www.ferrum.com

Ferrum SA de Ceramica y Metalurgica is engaged in the manufacturing and sale of sanitary wares. It offers bathroom accessories, spare parts, toiletry sets, sinks and lavatories, cabins and various other products. Geographically the group operates through Argentina.

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