Dubai Financial Market PJSC (DFM:DFM) Beneish M-Score : -1.90 (As of Apr. 30, 2024)

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What is Dubai Financial Market PJSC 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 -1.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Dubai Financial Market PJSC's Beneish M-Score or its related term are showing as below:

DFM:DFM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75 Med: -2.25 Max: 0.19
Current: -1.9

During the past 13 years, the highest Beneish M-Score of Dubai Financial Market PJSC was 0.19. The lowest was -2.75. And the median was -2.25.

Dubai Financial Market PJSC Beneish M-Score Historical Data

The historical data trend for Dubai Financial Market PJSC'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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Dubai Financial Market PJSC Beneish M-Score Chart

Dubai Financial Market PJSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.35

-1.84

-2.75

-2.13

-1.90

Dubai Financial Market PJSC 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															-2.13	-1.99	-1.84	-2.56	-1.90

Competitive Comparison of Dubai Financial Market PJSC's Beneish M-Score

For the Financial Data & Stock Exchanges subindustry, Dubai Financial Market PJSC'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.

Dubai Financial Market PJSC's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Dubai Financial Market PJSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dubai Financial Market PJSC's Beneish M-Score falls into.

Dubai Financial Market PJSC 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 Dubai Financial Market PJSC 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 * 1.0883

0.528 * 1

0.404 * 0.9506

0.892 * 1.5344

0.115 * 1.0141

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8356

4.679 * 0.005283

0.327 * 1.0285

-1.90

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ226.4 Mil.
Revenue was 181.923 + 138.164 + 128.212 + 89.793 = د.إ538.1 Mil.
Gross Profit was 181.923 + 138.164 + 128.212 + 89.793 = د.إ538.1 Mil.
Total Current Assets was د.إ3,361.5 Mil.
Total Assets was د.إ9,836.8 Mil.
Property, Plant and Equipment(Net PPE) was د.إ322.5 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ77.4 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ32.6 Mil.
Total Current Liabilities was د.إ1,621.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ2.3 Mil.
Net Income was 143.163 + 74.063 + 76.585 + 35.593 = د.إ329.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0.0 Mil.
Cash Flow from Operations was 7.116 + -77.493 + 301.858 + 45.955 = د.إ277.4 Mil.

Total Receivables was د.إ135.6 Mil.
Revenue was 113.557 + 73.975 + 85.088 + 78.057 = د.إ350.7 Mil.
Gross Profit was 113.557 + 73.975 + 85.088 + 78.057 = د.إ350.7 Mil.
Total Current Assets was د.إ2,926.4 Mil.
Total Assets was د.إ9,494.0 Mil.
Property, Plant and Equipment(Net PPE) was د.إ320.5 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ78.3 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ25.4 Mil.
Total Current Liabilities was د.إ1,491.1 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ32.2 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)
	=	(226.424 / 538.092)	/	(135.584 / 350.677)
	=	0.42079	/	0.386635
	=	1.0883

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)
	=	(350.677 / 350.677)	/	(538.092 / 538.092)
	=	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 - (3361.469 + 322.498) / 9836.819)	/	(1 - (2926.381 + 320.469) / 9493.989)
	=	0.625492	/	0.65801
	=	0.9506

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
	=	538.092	/	350.677
	=	1.5344

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))
	=	(78.288 / (78.288 + 320.469))	/	(77.423 / (77.423 + 322.498))
	=	0.19633	/	0.193596
	=	1.0141

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)
	=	(32.563 / 538.092)	/	(25.397 / 350.677)
	=	0.060516	/	0.072423
	=	0.8356

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)
	=	((2.34 + 1620.974) / 9836.819)	/	((32.189 + 1491.089) / 9493.989)
	=	0.165024	/	0.160447
	=	1.0285

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
	=	(329.404 - 0	-	277.436)	/	9836.819
	=	0.005283

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.

Dubai Financial Market PJSC has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.

Dubai Financial Market PJSC Beneish M-Score Related Terms

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Dubai Financial Market PJSC (DFM:DFM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Dubai Financial Market PJSC (DFM:DFM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sheikh Zayed Road, P.O. Box 9700, Reception - Mezzanine Floor, Dubai World Trade Center Building, Dubai, ARE

Website

https://www.dfm.ae

Dubai Financial Market PJSC (DFM) operates as a regulated secondary market for the trading of securities issued by public shareholding companies, bonds issued by federal or local governments, local public institutions, and mutual funds as well as other local or foreign financial instruments. The company operates according to the principles of Sharia law. Revenue is derived from trading, investment, administration, and DFM's subsidiaries. Trading constitutes a majority of revenue.

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