Papel Prensa (BUE:PREN1) Beneish M-Score : 1.60 (As of Sep. 22, 2024)

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What is Papel Prensa 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.

Warning Sign:

Beneish M-Score 1.6 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BUE:PREN1' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67 Med: -1.85 Max: 1.85
Current: 1.6

During the past 13 years, the highest Beneish M-Score of Papel Prensa was 1.85. The lowest was -2.67. And the median was -1.85.

Papel Prensa Beneish M-Score Historical Data

The historical data trend for Papel Prensa'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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Papel Prensa Beneish M-Score Chart

Papel Prensa Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.85

-2.67

-0.87

-0.74

-1.70

Papel Prensa Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-1.03	0.06	-1.70	1.85	1.60

Competitive Comparison of Papel Prensa's Beneish M-Score

For the Paper & Paper Products subindustry, Papel Prensa'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.

Papel Prensa's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Papel Prensa's Beneish M-Score distribution charts can be found below:

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

Papel Prensa 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 Papel Prensa 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 * 4.9037

0.528 * 0.9933

0.404 * 0.8238

0.892 * 0.8771

0.115 * 0.5257

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6157

4.679 * 0.136248

0.327 * 0.9118

1.60

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was ARS7,193 Mil.
Revenue was 23970.785 + 20322.344 + 37274.238 + 12946.144 = ARS94,514 Mil.
Gross Profit was 4891.319 + 6418.899 + 12451.595 + 4063.864 = ARS27,826 Mil.
Total Current Assets was ARS67,111 Mil.
Total Assets was ARS122,812 Mil.
Property, Plant and Equipment(Net PPE) was ARS34,969 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS383 Mil.
Selling, General, & Admin. Expense(SGA) was ARS3,829 Mil.
Total Current Liabilities was ARS24,832 Mil.
Long-Term Debt & Capital Lease Obligation was ARS2,043 Mil.
Net Income was -1294.699 + 4702.558 + -129.49 + 1382.733 = ARS4,661 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was -2849.171 + -1622.791 + 1208.278 + -8808.184 = ARS-12,072 Mil.

Total Receivables was ARS1,672 Mil.
Revenue was 30925.699 + 27589.96 + 37165.755 + 12079.901 = ARS107,761 Mil.
Gross Profit was 7195.466 + 10014.069 + 11235.06 + 3068.165 = ARS31,513 Mil.
Total Current Assets was ARS15,415 Mil.
Total Assets was ARS32,461 Mil.
Property, Plant and Equipment(Net PPE) was ARS10,394 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS60 Mil.
Selling, General, & Admin. Expense(SGA) was ARS7,091 Mil.
Total Current Liabilities was ARS7,788 Mil.
Long-Term Debt & Capital Lease Obligation was ARS3 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)
	=	(7193.017 / 94513.511)	/	(1672.419 / 107761.315)
	=	0.076106	/	0.01552
	=	4.9037

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)
	=	(31512.76 / 107761.315)	/	(27825.677 / 94513.511)
	=	0.292431	/	0.29441
	=	0.9933

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 - (67111.047 + 34969.333) / 122812.143)	/	(1 - (15414.672 + 10394.222) / 32460.728)
	=	0.168809	/	0.204919
	=	0.8238

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
	=	94513.511	/	107761.315
	=	0.8771

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))
	=	(59.51 / (59.51 + 10394.222))	/	(382.828 / (382.828 + 34969.333))
	=	0.005693	/	0.010829
	=	0.5257

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)
	=	(3829.467 / 94513.511)	/	(7091.005 / 107761.315)
	=	0.040518	/	0.065803
	=	0.6157

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)
	=	((2042.824 + 24832.463) / 122812.143)	/	((2.515 + 7787.681) / 32460.728)
	=	0.218832	/	0.239988
	=	0.9118

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
	=	(4661.102 - 0	-	-12071.868)	/	122812.143
	=	0.136248

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.

Papel Prensa has a M-score of 1.60 signals that the company is likely to be a manipulator.

Papel Prensa Beneish M-Score Related Terms

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Papel Prensa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Papel Prensa SA (BUE:PREN1) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Bartolome Mitre 739, 4th Floor, Buenos Aires, ARG, 1036

Website

http://www.papelprensa.com

Papel Prensa SA operates in the paper industry. It is engaged in the production of newsprint paper. The company is also engaged in the forestry sector. It offers various products, produced for different usage, papers for publications, books, catalogues, notebooks and pads; papers for advertising material and packaging papers.

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