Cornerstone Building Brands (NYSE:CNR) Beneish M-Score

: 0.00 (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.

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

During the past 13 years, the highest Beneish M-Score of Cornerstone Building Brands was 0.00. The lowest was 0.00. And the median was 0.00.

Cornerstone Building Brands Beneish M-Score Historical Data

The historical data trend for Cornerstone Building Brands'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.

Cornerstone Building Brands Annual Data

Trend

Oct12

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Dec19

Dec20

Dec21

Beneish M-Score

-2.36

-2.28

-0.84

-2.71

-2.12

Cornerstone Building Brands Quarterly Data
	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
Beneish M-Score																-2.47	-2.44	-2.36	-2.12	-2.28

Competitive Comparison

For the Building Products & Equipment subindustry, Cornerstone Building Brands'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.

Annual Data Quarterly Data

Cornerstone Building Brands Beneish M-Score Distribution

For the Construction industry and Industrials sector, Cornerstone Building Brands's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cornerstone Building Brands's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

Cornerstone Building Brands 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 Cornerstone Building Brands 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 * 0.9121

0.528 * 1.0452

0.404 * 0.9773

0.892 * 1.2332

0.115 * 1.0093

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9616

4.679 * 0.000929

0.327 * 0.8463

-2.28

This Year (Mar22) TTM:

Last Year (Mar21) TTM:

Total Receivables was $712 Mil.
Revenue was 1566.838 + 1471.579 + 1444.405 + 1400.121 = $5,883 Mil.
Gross Profit was 333.907 + 318.122 + 309.496 + 311.728 = $1,273 Mil.
Total Current Assets was $2,179 Mil.
Total Assets was $6,032 Mil.
Property, Plant and Equipment(Net PPE) was $921 Mil.
Depreciation, Depletion and Amortization(DDA) was $294 Mil.
Selling, General, & Admin. Expense(SGA) was $673 Mil.
Total Current Liabilities was $895 Mil.
Long-Term Debt & Capital Lease Obligation was $3,244 Mil.
Net Income was 102.283 + 38.052 + 620.535 + 8.927 = $770 Mil.
Non Operating Income was 72.36 + -23.347 + 807.098 + -46.103 = $810 Mil.
Cash Flow from Operations was 190.106 + -32.247 + -171.919 + -31.752 = $-46 Mil.

Total Receivables was $633 Mil.
Revenue was 1267.032 + 1191.369 + 1227.253 + 1084.936 = $4,771 Mil.
Gross Profit was 259.729 + 267.2 + 297.502 + 254.731 = $1,079 Mil.
Total Current Assets was $1,890 Mil.
Total Assets was $5,528 Mil.
Property, Plant and Equipment(Net PPE) was $889 Mil.
Depreciation, Depletion and Amortization(DDA) was $287 Mil.
Selling, General, & Admin. Expense(SGA) was $567 Mil.
Total Current Liabilities was $729 Mil.
Long-Term Debt & Capital Lease Obligation was $3,754 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)
	=	(711.842 / 5882.943)	/	(632.879 / 4770.59)
	=	0.121001	/	0.132663
	=	0.9121

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)
	=	(1079.162 / 4770.59)	/	(1273.253 / 5882.943)
	=	0.226211	/	0.216431
	=	1.0452

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 - (2179.281 + 920.798) / 6031.656)	/	(1 - (1890.474 + 888.622) / 5528.306)
	=	0.486032	/	0.497297
	=	0.9773

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
	=	5882.943	/	4770.59
	=	1.2332

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))
	=	(287.448 / (287.448 + 888.622))	/	(294.218 / (294.218 + 920.798))
	=	0.244414	/	0.242152
	=	1.0093

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)
	=	(672.84 / 5882.943)	/	(567.414 / 4770.59)
	=	0.114371	/	0.11894
	=	0.9616

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)
	=	((3244.007 + 895.331) / 6031.656)	/	((3754.011 + 728.987) / 5528.306)
	=	0.686269	/	0.810917
	=	0.8463

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
	=	(769.797 - 810.008	-	-45.812)	/	6031.656
	=	0.000929

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.

Cornerstone Building Brands has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.

Cornerstone Building Brands Beneish M-Score Related Terms

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Cornerstone Building Brands (NYSE:CNR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Cornerstone Building Brands Inc (NYSE:CNR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5020 Weston Parkway, Suite 400, Cary, NC, USA, 27513

Website

https://www.cornerstonebuildingbrands.com

Cornerstone Building Brands Inc constructs and sells building materials for the commercial, residential, and repair industries in North America. The company operates in three segments: commercial, which provides metal products and coil coating services for commercial construction; siding, which offers vinyl and steel siding, aluminum coil and gutters, roofing accessories, moldings, window and door trim, rain removal systems, vents, fences, and railings; and windows, which includes vinyl, aluminum, and wooden windows as well as steel, wood, and fiberglass doors. All three segments contribute sizably to total revenue.

Executives

Rose Lee	director, officer: PRESIDENT & CEO	C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Judith A Reinsdorf	director	C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Alena Brenner	officer: EVP, GC and Corp. Sec.	5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Jeffrey S. Lee	officer: EVP, CFO	5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Katy Theroux	officer: Executive VP, Chief HR Officer	10943 N. SAM HOUSTON PARKWAY W. HOUSTON TX 77056
Daniel C. Janki	director	5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Timothy J. Obrien	director	C/O NCI BUILDING SYSTEMS, INC. 10943 NORTH SAM HOUSTON PARKWAY WEST HOUSTON TX 77064
George L. Ball	director	10943 N. SAM HOUSTON PARKWAY W., HOUSTON TX 77064
William E Jackson	director	ONE NEENAH CENTER, 4TH FLOOR P.O. BOX 669 NEENAH WI 54957
Kathleen J Affeldt	director
John J Holland	director	26602 W. GREENTREE, OLATHE KS 66061
James Keppler	officer: EVP, OPERATIONS	5020 WESTON PARKWAY SUITE 400 CARY NC 27513
James Wilbert W Jr	director	16100 SOUTH LATHROP AVENUE, HARVEY IL 60426
Wayne Irmiter	officer: SVP, CAO	5020 WESTON PARKWAY CAY NC 27513
Atrium Window Holdings, Llc	10 percent owner	C/O GOLDEN GATE PRIVATE EQUITY, INC. 1 EMBARCADERO CENTER SAN FRANCISCO CA 94111