Conifer Holdings (Conifer Holdings) Beneish M-Score : -2.41 (As of Apr. 28, 2024)

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What is Conifer Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CNFR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.41 Max: -1.48
Current: -2.41

During the past 12 years, the highest Beneish M-Score of Conifer Holdings was -1.48. The lowest was -3.21. And the median was -2.41.

Conifer Holdings 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 Conifer Holdings 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 * 1.0663

0.528 * 1

0.404 * 1.2274

0.892 * 0.9502

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.2397

4.679 * -0.042354

0.327 * 0.9139

-2.41

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $113.84 Mil.
Revenue was 21.14 + 25.781 + 24.923 + 24.579 = $96.42 Mil.
Gross Profit was 21.14 + 25.781 + 24.923 + 24.579 = $96.42 Mil.
Total Current Assets was $267.92 Mil.
Total Assets was $311.80 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.55 Mil.
Selling, General, & Admin. Expense(SGA) was $4.28 Mil.
Total Current Liabilities was $19.54 Mil.
Long-Term Debt & Capital Lease Obligation was $25.06 Mil.
Net Income was -19.46 + -2.706 + -4.739 + 1.001 = $-25.90 Mil.
Non Operating Income was -0.769 + 0.439 + 0.398 + 0.626 = $0.69 Mil.
Cash Flow from Operations was -12.663 + 0.718 + 4.571 + -6.018 = $-13.39 Mil.

Total Receivables was $112.37 Mil.
Revenue was 25.094 + 26.336 + 24.683 + 25.366 = $101.48 Mil.
Gross Profit was 25.094 + 26.336 + 24.683 + 25.366 = $101.48 Mil.
Total Current Assets was $276.53 Mil.
Total Assets was $312.35 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.42 Mil.
Selling, General, & Admin. Expense(SGA) was $18.79 Mil.
Total Current Liabilities was $15.01 Mil.
Long-Term Debt & Capital Lease Obligation was $33.88 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)
	=	(113.842 / 96.423)	/	(112.367 / 101.479)
	=	1.180652	/	1.107293
	=	1.0663

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)
	=	(101.479 / 101.479)	/	(96.423 / 96.423)
	=	1	/	1
	=	1

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 - (267.918 + 0) / 311.804)	/	(1 - (276.532 + 0) / 312.35)
	=	0.140749	/	0.114673
	=	1.2274

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
	=	96.423	/	101.479
	=	0.9502

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))
	=	(0.417 / (0.417 + 0))	/	(0.545 / (0.545 + 0))
	=	1	/	1
	=	1

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)
	=	(4.279 / 96.423)	/	(18.789 / 101.479)
	=	0.044377	/	0.185152
	=	0.2397

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)
	=	((25.061 + 19.542) / 311.804)	/	((33.876 + 15.014) / 312.35)
	=	0.143048	/	0.156523
	=	0.9139

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
	=	(-25.904 - 0.694	-	-13.392)	/	311.804
	=	-0.042354

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.

Conifer Holdings has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

Conifer Holdings Beneish M-Score Related Terms

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Conifer Holdings (Conifer Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Conifer Holdings Inc (NAS:CNFR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

550 West Merrill Street, Suite 200, Birmingham, MI, USA, 48009

Website

https://www.cnfrh.com

Conifer Holdings Inc is an insurance company engaged in the sale of property and casualty insurance products. It is engaged in three classes of insurance businesses; commercial lines, personal lines, and wholesale agency business. Within these three businesses, the company offers various insurance products and insurance agency services. The company views the commercial and personal lines segments as underwriting business. The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. Its revenues are derived from premiums earned from insurance operations.

Executives

James G Petcoff	director, 10 percent owner, officer: Chairman and CEO	350 N NINTH STREET, SUITE 202, BOISE ID 83702
Gerald W Hakala	director	550 W. MERRILL STREET, SUITE 200, BIRMINGHAM MI 48009
Brian J Roney	officer: President	28819 FRANKLIN ROAD, SOUTHFIELD MI 48034
Nicholas J Petcoff	director, officer: EVP, Secretary	550 W. MERRILL STREET, SUITE 200, BIRMINGHAM MI 48009
Joseph D Sarafa	director	11123 BUGAI, TRAVERSE CITY MI 49684
Clarkston Ventures, Llc	10 percent owner	91 WEST LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Jeffrey Anthony Hakala	director	91 WEST LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Williams R Jamison Jr	director	28819 FRANKLIN ROAD, SOUTHFIELD MI 48034
Isolde O'hanlon	director	550 W MERRILL, SUITE 200, BIRMINGHAM MI 48009
Timothy Lamothe	director	26 WAKEMAN ROAD, SOUTH SALEM NY 10590
Andrew Petcoff	officer: SVP, Marketing	550 W. MERRILL STREET, SUITE 200, BIRMINGHAM MI 48009
John William Melstrom	director	355 S. OLD WOODWARD AVENUE, SUITE 200, BIRMINGHAM MI 48009
Mark Mccammon	director	550 W. MERRILL STREET, SUITE 200, BIRMINGHAM MI 48009
Harold J Meloche	officer: CFO, Treasurer	28819 FRANKLIN ROAD, SOUTHFIELD MI 48034
Jorge J Morales	director	28819 FRANKLIN ROAD, SOUTHFIELD MI 48034