Egyptian International Pharmaceutical Investments (CAI:PHAR) Beneish M-Score : -1.84 (As of Apr. 26, 2024)

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What is Egyptian International Pharmaceutical Investments 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 -1.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CAI:PHAR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.6 Med: -2.14 Max: -1.38
Current: -1.84

During the past 13 years, the highest Beneish M-Score of Egyptian International Pharmaceutical Investments was -1.38. The lowest was -2.60. And the median was -2.14.

Egyptian International Pharmaceutical Investments Beneish M-Score Historical Data

The historical data trend for Egyptian International Pharmaceutical Investments'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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Egyptian International Pharmaceutical Investments Beneish M-Score Chart

Egyptian International Pharmaceutical Investments Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.73

-2.37

-2.48

-2.06

-1.84

Egyptian International Pharmaceutical Investments 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															-2.06	-2.40	-1.51	-1.68	-1.84

Competitive Comparison of Egyptian International Pharmaceutical Investments's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Egyptian International Pharmaceutical Investments'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.

Egyptian International Pharmaceutical Investments's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Egyptian International Pharmaceutical Investments's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Egyptian International Pharmaceutical Investments's Beneish M-Score falls into.

Egyptian International Pharmaceutical Investments 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 Egyptian International Pharmaceutical Investments 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 * 0.9782

0.528 * 0.9364

0.404 * 0.8992

0.892 * 1.3227

0.115 * 2.0102

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8973

4.679 * 0.073451

0.327 * 1.1071

-1.84

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was E£2,409 Mil.
Revenue was 1550.576 + 1411.118 + 1277.551 + 992.421 = E£5,232 Mil.
Gross Profit was 633.603 + 609.058 + 601.805 + 490.855 = E£2,335 Mil.
Total Current Assets was E£5,486 Mil.
Total Assets was E£9,979 Mil.
Property, Plant and Equipment(Net PPE) was E£4,024 Mil.
Depreciation, Depletion and Amortization(DDA) was E£105 Mil.
Selling, General, & Admin. Expense(SGA) was E£325 Mil.
Total Current Liabilities was E£2,831 Mil.
Long-Term Debt & Capital Lease Obligation was E£2,832 Mil.
Net Income was 254.6 + 105.296 + 275.154 + 188.256 = E£823 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = E£0 Mil.
Cash Flow from Operations was 189.959 + -24.096 + -61.165 + -14.343 = E£90 Mil.

Total Receivables was E£1,862 Mil.
Revenue was 1268.107 + 953.01 + 806.665 + 927.375 = E£3,955 Mil.
Gross Profit was 474.448 + 411.611 + 351.292 + 415.837 = E£1,653 Mil.
Total Current Assets was E£4,582 Mil.
Total Assets was E£6,774 Mil.
Property, Plant and Equipment(Net PPE) was E£1,838 Mil.
Depreciation, Depletion and Amortization(DDA) was E£99 Mil.
Selling, General, & Admin. Expense(SGA) was E£274 Mil.
Total Current Liabilities was E£2,660 Mil.
Long-Term Debt & Capital Lease Obligation was E£813 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)
	=	(2408.925 / 5231.666)	/	(1861.724 / 3955.157)
	=	0.460451	/	0.470708
	=	0.9782

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)
	=	(1653.188 / 3955.157)	/	(2335.321 / 5231.666)
	=	0.417983	/	0.446382
	=	0.9364

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 - (5486.11 + 4023.88) / 9978.783)	/	(1 - (4582.091 + 1837.91) / 6773.91)
	=	0.046979	/	0.052246
	=	0.8992

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
	=	5231.666	/	3955.157
	=	1.3227

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))
	=	(99.26 / (99.26 + 1837.91))	/	(105.25 / (105.25 + 4023.88))
	=	0.05124	/	0.02549
	=	2.0102

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)
	=	(324.861 / 5231.666)	/	(273.708 / 3955.157)
	=	0.062095	/	0.069203
	=	0.8973

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)
	=	((2832.452 + 2830.735) / 9978.783)	/	((812.925 + 2659.657) / 6773.91)
	=	0.567523	/	0.512641
	=	1.1071

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
	=	(823.306 - 0	-	90.355)	/	9978.783
	=	0.073451

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.

Egyptian International Pharmaceutical Investments has a M-score of -1.84 suggests that the company is unlikely to be a manipulator.

Egyptian International Pharmaceutical Investments Beneish M-Score Related Terms

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Egyptian International Pharmaceutical Investments (CAI:PHAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Egyptian International Pharmaceutical Investments (CAI:PHAR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1st Industrial Zone B1, EIPICO, 10th of Ramadan, EGY

Website

http://www.eipico.com.eg

Egyptian International Pharmaceutical Investments is an Egypt based company pharmaceutical generic drugs. It holds license agreements with a group of pharmaceutical companies to produce their products locally and replace the imported ones. The company produces dosage forms, Spansule capsules, non-traditional dosage forms including soft gelatin capsules, lyophilized products, gels, sprayers and effervescent tablets. It exports its products to Arab countries, African, Asian and East European Countries. Its products portfolio includes antibiotics, anesthetics, analgesics, antihypertensives, cholesterol-lowering medications, ophthalmic products, blood substitutes and restoratives, dermatological drugs and vitamins. Some of its products are Vasotec, Co-vasotec, Flumox, and Cefotax.