Dun & Bradstreet Holdings (NYSE:DNB) Beneish M-Score

: -3.12 (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.

Good Sign:

Beneish M-Score -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DNB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18 Med: -2.62 Max: -2.22
Current: -3.12

During the past 6 years, the highest Beneish M-Score of Dun & Bradstreet Holdings was -2.22. The lowest was -3.18. And the median was -2.62.

Dun & Bradstreet Holdings Beneish M-Score Historical Data

The historical data trend for Dun & Bradstreet Holdings'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.

Dun & Bradstreet Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-2.40

-2.29

-3.04

Dun & Bradstreet Holdings Quarterly Data
	Dec17	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Beneish M-Score																-2.62	-2.98	-3.04	-3.18	-3.12

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Dun & Bradstreet Holdings'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

Dun & Bradstreet Holdings Beneish M-Score Distribution

For the Capital Markets industry and Financial Services sector, Dun & Bradstreet Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dun & Bradstreet Holdings'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.

Dun & Bradstreet 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 Dun & Bradstreet 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 * 0.5774

0.528 * 1.04

0.404 * 1.003

0.892 * 1.0149

0.115 * 1.0002

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0068

4.679 * -0.059349

0.327 * 1.0352

-3.12

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $189 Mil.
Revenue was 554.7 + 540.4 + 595 + 556.3 = $2,246 Mil.
Gross Profit was 349.7 + 344.5 + 406.9 + 381.3 = $1,482 Mil.
Total Current Assets was $690 Mil.
Total Assets was $9,267 Mil.
Property, Plant and Equipment(Net PPE) was $146 Mil.
Depreciation, Depletion and Amortization(DDA) was $581 Mil.
Selling, General, & Admin. Expense(SGA) was $751 Mil.
Total Current Liabilities was $975 Mil.
Long-Term Debt & Capital Lease Obligation was $3,651 Mil.
Net Income was -19.4 + -33.7 + 22.8 + 8 = $-22 Mil.
Non Operating Income was -3.1 + -3.6 + -3 + 2.2 = $-8 Mil.
Cash Flow from Operations was 58.9 + 155.7 + 97.3 + 223.3 = $535 Mil.

Total Receivables was $322 Mil.
Revenue was 537.3 + 536 + 598.3 + 541.9 = $2,214 Mil.
Gross Profit was 355.7 + 359.3 + 421.6 + 382.5 = $1,519 Mil.
Total Current Assets was $748 Mil.
Total Assets was $9,697 Mil.
Property, Plant and Equipment(Net PPE) was $153 Mil.
Depreciation, Depletion and Amortization(DDA) was $610 Mil.
Selling, General, & Admin. Expense(SGA) was $735 Mil.
Total Current Liabilities was $948 Mil.
Long-Term Debt & Capital Lease Obligation was $3,727 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)
	=	(188.5 / 2246.4)	/	(321.7 / 2213.5)
	=	0.083912	/	0.145335
	=	0.5774

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)
	=	(1519.1 / 2213.5)	/	(1482.4 / 2246.4)
	=	0.686289	/	0.6599
	=	1.04

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 - (690.1 + 145.5) / 9267.2)	/	(1 - (748.1 + 152.6) / 9696.6)
	=	0.909833	/	0.907112
	=	1.003

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
	=	2246.4	/	2213.5
	=	1.0149

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))
	=	(610.3 / (610.3 + 152.6))	/	(581.2 / (581.2 + 145.5))
	=	0.799974	/	0.79978
	=	1.0002

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)
	=	(751.4 / 2246.4)	/	(735.4 / 2213.5)
	=	0.334491	/	0.332234
	=	1.0068

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)
	=	((3650.6 + 974.6) / 9267.2)	/	((3726.9 + 948) / 9696.6)
	=	0.499094	/	0.482117
	=	1.0352

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
	=	(-22.3 - -7.5	-	535.2)	/	9267.2
	=	-0.059349

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.

Dun & Bradstreet Holdings has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.

Dun & Bradstreet Holdings Beneish M-Score Related Terms

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Dun & Bradstreet Holdings (NYSE:DNB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Dun & Bradstreet Holdings Inc (NYSE:DNB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5335 Gate Parkway, Jacksonville, FL, USA, 32256

Website

https://www.dnb.com

Dun & Bradstreet Holdings Inc is a provider of business decisioning data and analytics. The company operates in two segments: North America, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights in the United States and Canada; and International, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights directly in the U.K, Europe, Greater China, India and indirectly through its WWN alliances. The company generates maximum revenue from the North American region. Other services provided by the company include digital marketing, sales acceleration, and risk management among others.

Executives

Kirsten Marie Kliphouse	director	531 SOUTH SPRING STREET, BURLINGTON NC 27215
Virginia Green Gomez	officer: President, North America	5335 GATE PKWY, JACKSONVILLE FL 32256
Thl Managers Viii, Llc	director, 10 percent owner	100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Cannae Holdings, Llc	director, 10 percent owner	1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 18934
Black Knight Financial Services, Inc.	director, 10 percent owner	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Dnb Holdco, Llc	director, 10 percent owner	1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Black Knight, Inc.	director, 10 percent owner	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Black Knight Financial Services, Llc	director, 10 percent owner	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Black Knight Infoserv, Llc	director, 10 percent owner	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Thl Equity Fund Viii Investors (d&b), L.p.	director, 10 percent owner	C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Thl Equity Advisors Viii, Llc	director, 10 percent owner	100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Thl Fund Viii Coinvestment Partners, L.p.	director, 10 percent owner	100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Thomas H. Lee Equity Fund Viii, L.p.	director, 10 percent owner	C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, BOSTON MA 02110
Thl Executive Fund Viii, L.p.	director, 10 percent owner	C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, BOSTON MA 02110
Thomas H. Lee Parallel Fund Viii, L.p.	director, 10 percent owner	C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, BOSTON MA 02110