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EMCOR Group Inc (NYSE:EME)
Beneish M-Score
-2.48 (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.

EMCOR Group Inc has a M-score of -2.48 suggests that the company is not a manipulator.

EME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -0.99
Current: -2.48

-3.12
-0.99

During the past 13 years, the highest Beneish M-Score of EMCOR Group Inc was -0.99. The lowest was -3.12. And the median was -2.48.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 EMCOR Group 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 * 0.996+0.528 * 0.9847+0.404 * 1.0984+0.892 * 1.1198+0.115 * 0.9801
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9992+4.679 * -0.0253-0.327 * 1.0552
=-2.48

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $1,508 Mil.
Revenue was 1891.732 + 1949.964 + 1923.174 + 1933.416 = $7,698 Mil.
Gross Profit was 266.34 + 271.969 + 268.044 + 274.741 = $1,081 Mil.
Total Current Assets was $2,042 Mil.
Total Assets was $3,805 Mil.
Property, Plant and Equipment(Net PPE) was $131 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General & Admin. Expense(SGA) was $741 Mil.
Total Current Liabilities was $1,473 Mil.
Long-Term Debt was $405 Mil.
Net Income was 52.64 + 40.676 + 51.531 + 55.38 = $200 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -5.17 + 135.637 + 81.139 + 84.946 = $297 Mil.
Accounts Receivable was $1,352 Mil.
Revenue was 1744.97 + 1777.826 + 1699.128 + 1652.585 = $6,875 Mil.
Gross Profit was 223.108 + 252.621 + 235.402 + 239.527 = $951 Mil.
Total Current Assets was $1,981 Mil.
Total Assets was $3,450 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $662 Mil.
Total Current Liabilities was $1,320 Mil.
Long-Term Debt was $294 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(1508.471 / 7698.286) / (1352.416 / 6874.509)
=0.19594894 / 0.1967291
=0.996

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)
=(950.658 / 6874.509) / (1081.094 / 7698.286)
=0.1382874 / 0.14043308
=0.9847

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2041.792 + 131.455) / 3805.162) / (1 - (1980.927 + 121.825) / 3449.659)
=0.42886873 / 0.39044642
=1.0984

4. SGI = Sales Growth Index

Ratio of sales 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
=7698.286 / 6874.509
=1.1198

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(74.768 / (74.768 + 121.825)) / (83.358 / (83.358 + 131.455))
=0.38031873 / 0.38804914
=0.9801

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(741.137 / 7698.286) / (662.384 / 6874.509)
=0.09627299 / 0.09635365
=0.9992

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)
=((405.405 + 1472.86) / 3805.162) / ((293.958 + 1319.752) / 3449.659)
=0.49360973 / 0.46778827
=1.0552

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
=(200.227 - 0 - 296.552) / 3805.162
=-0.0253

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.

EMCOR Group Inc has a M-score of -2.48 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

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

EMCOR Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.98650.77340.92951.1430.97150.93211.00790.96631.05370.9784
GMI 0.95020.90850.87891.04241.09091.00751.01440.90591.00451.0228
AQI 1.65481.02541.00780.81451.29890.94051.33850.99940.93881.0446
SGI 1.20231.13820.81760.90281.12071.10371.02971.00711.04571.124
DEPI 0.92870.92711.00631.03380.92821.00780.97240.9321.00170.9845
SGAI 0.94771.01351.14030.99160.95120.95051.04881.05971.00220.9832
LVGI 1.04630.93111.04370.85310.98050.94681.01121.00131.02251.0215
TATA -0.0795-0.0504-0.0665-0.0596-0.0062-0.0122-0.0076-0.023-0.0266-0.0212
M-score -2.46-2.83-3.12-2.71-2.25-2.50-2.35-2.68-2.54-2.46

EMCOR Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.96630.981.06671.03291.05371.02691.00861.01130.97840.996
GMI 0.90590.92960.96750.99661.00451.02211.03171.02371.02280.9847
AQI 0.99941.00290.97180.96140.93880.94491.01071.00571.04461.0984
SGI 1.00711.00341.01961.04661.04571.07021.09691.10871.1241.1198
DEPI 0.9320.95270.98790.98851.00171.01481.03241.01790.98450.9801
SGAI 1.05971.08391.06541.02561.00220.96080.95010.95490.98320.9992
LVGI 1.00131.02181.0431.01361.02251.01761.08191.08181.02151.0552
TATA -0.023-0.028-0.0099-0.02-0.0266-0.0213-0.0364-0.0276-0.0212-0.0253
M-score -2.68-2.69-2.50-2.53-2.54-2.50-2.55-2.50-2.46-2.48
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