Drake & Scull International PJSC (DFM:DSI) Beneish M-Score : -4.90 (As of Jun. 16, 2024)

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What is Drake & Scull International 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 -4.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Drake & Scull International PJSC's Beneish M-Score or its related term are showing as below:

DFM:DSI' s Beneish M-Score Range Over the Past 10 Years
Min: -27.86 Med: -3.99 Max: 3.62
Current: -4.9

During the past 13 years, the highest Beneish M-Score of Drake & Scull International PJSC was 3.62. The lowest was -27.86. And the median was -3.99.

Drake & Scull International PJSC Beneish M-Score Historical Data

The historical data trend for Drake & Scull International 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.

* Premium members only.

Drake & Scull International PJSC Beneish M-Score Chart

Drake & Scull International PJSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-27.86

-9.44

-2.12

-4.27

-6.21

Drake & Scull International PJSC Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-4.97	-5.46	-3.99	-6.21	-4.90

Competitive Comparison of Drake & Scull International PJSC's Beneish M-Score

For the Engineering & Construction subindustry, Drake & Scull International 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.

Drake & Scull International PJSC's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Drake & Scull International PJSC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Drake & Scull International PJSC's Beneish M-Score falls into.

Drake & Scull International 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 Drake & Scull International 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 * 0.4801

0.528 * 2.4444

0.404 * 0.9534

0.892 * 1.3622

0.115 * 1.0267

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4916

4.679 * -0.654107

0.327 * 1.1107

-4.90

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was د.إ110.5 Mil.
Revenue was 30.614 + 29.641 + 18.942 + 25.551 = د.إ104.7 Mil.
Gross Profit was 1.315 + -3.364 + 2.253 + 3.766 = د.إ4.0 Mil.
Total Current Assets was د.إ237.6 Mil.
Total Assets was د.إ358.8 Mil.
Property, Plant and Equipment(Net PPE) was د.إ19.0 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ7.0 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ17.1 Mil.
Total Current Liabilities was د.إ4,814.4 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ5.7 Mil.
Net Income was -46.332 + -170.547 + -34.986 + -43.404 = د.إ-295.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0.0 Mil.
Cash Flow from Operations was -14.946 + 73.772 + -112.465 + -6.915 = د.إ-60.6 Mil.

Total Receivables was د.إ169.0 Mil.
Revenue was 19.709 + 16.916 + 19.1 + 21.174 = د.إ76.9 Mil.
Gross Profit was 1.157 + 3.66 + 3.01 + -0.703 = د.إ7.1 Mil.
Total Current Assets was د.إ243.2 Mil.
Total Assets was د.إ375.7 Mil.
Property, Plant and Equipment(Net PPE) was د.إ20.2 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ7.7 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ25.5 Mil.
Total Current Liabilities was د.إ4,537.2 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ6.4 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)
	=	(110.514 / 104.748)	/	(168.995 / 76.899)
	=	1.055046	/	2.197623
	=	0.4801

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)
	=	(7.124 / 76.899)	/	(3.97 / 104.748)
	=	0.092641	/	0.0379
	=	2.4444

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 - (237.621 + 19.019) / 358.833)	/	(1 - (243.222 + 20.244) / 375.694)
	=	0.284793	/	0.298722
	=	0.9534

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
	=	104.748	/	76.899
	=	1.3622

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))
	=	(7.68 / (7.68 + 20.244))	/	(6.959 / (6.959 + 19.019))
	=	0.275032	/	0.267881
	=	1.0267

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)
	=	(17.087 / 104.748)	/	(25.517 / 76.899)
	=	0.163125	/	0.331825
	=	0.4916

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)
	=	((5.719 + 4814.43) / 358.833)	/	((6.416 + 4537.184) / 375.694)
	=	13.432848	/	12.093885
	=	1.1107

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
	=	(-295.269 - 0	-	-60.554)	/	358.833
	=	-0.654107

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.

Drake & Scull International PJSC has a M-score of -4.90 suggests that the company is unlikely to be a manipulator.

Drake & Scull International PJSC Beneish M-Score Related Terms

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Drake & Scull International PJSC (DFM:DSI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Drake & Scull International PJSC (DFM:DSI) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

International Media Production Zone, P.O. Box 65794, Dubai, ARE

Website

https://www.drakescull.com

Drake & Scull International PJSC is engaged in carrying out contracting work relating to the construction industry, such as electrical, plumbing, oil and gas, air conditioning and sanitation work in the Middle East, Europe, Asia and North Africa region. The company is organized into business units based on its services and has three reportable business segments, namely, Engineering (Mechanical, Electrical and Plumbing) and Others. The company is geographically distributed in the UAE and Others. The company is presently engaged in carrying out contracting work relating to the construction industry in the United Arab Emirates, Kuwait, Egypt, Germany, Algeria, India, Iraq and Jordan.