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CapStar Financial Holdings Inc  (NAS:CSTR) Beneish M-Score: -2.91 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

CapStar Financial Holdings Inc has a M-score of -2.91 suggests that the company is not a manipulator.

NAS:CSTR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Max: 0
Current: -2.91

-2.91
0

During the past 4 years, the highest Beneish M-Score of CapStar Financial Holdings Inc was 0.00. The lowest was -2.91. And the median was 0.00.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

CapStar Financial Holdings Inc Annual Data

Dec13 Dec14 Dec15 Dec16
Beneish M-Score 0.00 0.00 0.00 0.00

CapStar Financial Holdings Inc Quarterly Data

Dec13 Dec14 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 -2.91

Competitive Comparison
* 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.


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 CapStar Financial Holdings Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9686+0.528 * 1+0.404 * 0.9992+0.892 * 1.1274+0.115 * 0.6746
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9107+4.679 * 0.0005-0.327 * 2.5079
=-2.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun17) TTM:Last Year (Jun16) TTM:
Accounts Receivable was $3.57 Mil.
Revenue was 13.237 + 12.065 + 13.134 + 13.317 = $51.75 Mil.
Gross Profit was 13.237 + 12.065 + 13.134 + 13.317 = $51.75 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,371.63 Mil.
Property, Plant and Equipment(Net PPE) was $6.07 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.43 Mil.
Selling, General, & Admin. Expense(SGA) was $23.88 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $105.00 Mil.
Net Income was -3.342 + 0.332 + 2.927 + 2.109 = $2.03 Mil.
Non-Recurring Items was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -32.95 + 6.967 + 26.035 + 1.249 = $1.30 Mil.
Accounts Receivable was $3.27 Mil.
Revenue was 11.769 + 11.327 + 10.756 + 12.052 = $45.90 Mil.
Gross Profit was 11.769 + 11.327 + 10.756 + 12.052 = $45.90 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,310.42 Mil.
Property, Plant and Equipment(Net PPE) was $4.75 Mil.
(DDA) was $0.22 Mil.
Selling, General, & Admin. Expense(SGA) was $23.26 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $40.00 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(3.571 / 51.753) / (3.27 / 45.904)
=0.06900083 / 0.07123562
=0.9686

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)
=(45.904 / 45.904) / (51.753 / 51.753)
=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 - (0 + 6.066) / 1371.626) / (1 - (0 + 4.749) / 1310.418)
=0.99557751 / 0.99637597
=0.9992

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
=51.753 / 45.904
=1.1274

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))
=(0.223 / (0.223 + 4.749)) / (0.432 / (0.432 + 6.066))
=0.04485117 / 0.06648199
=0.6746

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(23.883 / 51.753) / (23.262 / 45.904)
=0.46148049 / 0.50675322
=0.9107

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((105 + 0) / 1371.626) / ((40 + 0) / 1310.418)
=0.07655148 / 0.03052461
=2.5079

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
=(2.026 - 0 - 1.301) / 1371.626
=0.0005

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

CapStar Financial Holdings Inc has a M-score of -2.91 suggests that the company will not be a manipulator.


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