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ENBP (ENB Financial) Beneish M-Score : -2.37 (As of Dec. 14, 2024)


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What is ENB Financial Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ENBP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71   Med: -2.42   Max: -2.24
Current: -2.37

During the past 13 years, the highest Beneish M-Score of ENB Financial was -2.24. The lowest was -2.71. And the median was -2.42.


ENB Financial 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 ENB Financial 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 * 1+0.528 * 1+0.404 * 0.9998+0.892 * 1.0693+0.115 * 1.0153
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0059+4.679 * -0.00192-0.327 * 0.8424
=-2.37

* 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.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $0.00 Mil.
Revenue was 18.709 + 18.395 + 17.718 + 17.288 = $72.11 Mil.
Gross Profit was 18.709 + 18.395 + 17.718 + 17.288 = $72.11 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $2,092.47 Mil.
Property, Plant and Equipment(Net PPE) was $28.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.09 Mil.
Selling, General, & Admin. Expense(SGA) was $33.91 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $127.50 Mil.
Net Income was 3.336 + 4.314 + 3.941 + 4.524 = $16.12 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 5.222 + 6.217 + 1.41 + 7.284 = $20.13 Mil.
Total Receivables was $0.00 Mil.
Revenue was 16.913 + 16.079 + 16.458 + 17.988 = $67.44 Mil.
Gross Profit was 16.913 + 16.079 + 16.458 + 17.988 = $67.44 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,908.55 Mil.
Property, Plant and Equipment(Net PPE) was $25.34 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.91 Mil.
Selling, General, & Admin. Expense(SGA) was $31.53 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $138.04 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)
=(0 / 72.11) / (0 / 67.438)
=0 / 0
=1

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)
=(67.438 / 67.438) / (72.11 / 72.11)
=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 + 28.116) / 2092.471) / (1 - (0 + 25.339) / 1908.547)
=0.986563 / 0.986723
=0.9998

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
=72.11 / 67.438
=1.0693

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))
=(1.91 / (1.91 + 25.339)) / (2.085 / (2.085 + 28.116))
=0.070094 / 0.069037
=1.0153

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)
=(33.91 / 72.11) / (31.527 / 67.438)
=0.470254 / 0.467496
=1.0059

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)
=((127.498 + 0) / 2092.471) / ((138.044 + 0) / 1908.547)
=0.060932 / 0.072329
=0.8424

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
=(16.115 - 0 - 20.133) / 2092.471
=-0.00192

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.

ENB Financial has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


ENB Financial Beneish M-Score Related Terms

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ENB Financial Business Description

Traded in Other Exchanges
N/A
Address
31 E. Main Street, Ephrata, PA, USA, 17522
ENB Financial Corp operates as a bank. It offers services such as checking, savings, loans, online banking, credit cards, student loans, car and vehicle loans, and other banking-related services. The bank generates its revenue in the form of interest income.
Executives
Cindy L. Cake officer: Chief Human Resources Officer 31 E MAIN ST, EPHRATA PA 17522
Jeffrey Stauffer director, officer: Chairman, President, and CEO, Chairman of the Board 31 E MAIN ST, EPHRATA PA 17522
Chad E Neiss officer: Chief Strategy Officer 31 E MAIN ST, EPHRATA PA 17522
Roger L Zimmerman director 380 BLUE LAKE ROAD, DENVER PA 17517
Adrienne Lea Miller officer: General Counsel, other: Corporate Secretary 31 E. MAIN STREET, EPHRATA PA 17522
Rachel G Bitner officer: Chief Financial Officer, other: Treasurer of Corporation 31 E MAIN ST, EPHRATA PA 17522
Joshua E. Hoffman director 31 E MAIN ST, EPHRATA PA 17522
Joselyn D Strohm officer: Chief Operating Officer 31 E. MAIN STREET, EPHRATA PA 17522
Kitsch William J Iv officer: Chief Revenue Officer 31 E MAIN ST, EPHRATA PA 17522
Nicholas D Klein officer: Chief Risk Officer 31 E. MAIN STREET, EPHRATA PA 17522
Susan Y Nicholas director 1037 WHEATLAND AVE, LANCASTER PA 17603
Judith A Weaver director 1559 BRIERTOWN ROAD, EAST EARL PA 17519
Brian K Reed director 2564 VALLEY ROAD, MANHEIM PA 17545
J Daniel Stoltzfus director 540 WHITE SCHOOL ROAD, HONEY BROOK PA 19344
Jennifer Halligan officer: Controller 688 FAIRMONT AVENUE, MOHNTON PA 19540