Sopharma AD-Sofia (FRA:3JR) Beneish M-Score : -2.29 (As of Apr. 29, 2024)

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What is Sopharma AD-Sofia 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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:3JR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66 Med: -1.87 Max: -1.49
Current: -2.29

During the past 13 years, the highest Beneish M-Score of Sopharma AD-Sofia was -1.49. The lowest was -2.66. And the median was -1.87.

Sopharma AD-Sofia Beneish M-Score Historical Data

The historical data trend for Sopharma AD-Sofia'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.

Sopharma AD-Sofia Beneish M-Score Chart

Sopharma AD-Sofia Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.49

-1.89

-1.65

-2.58

-2.29

Sopharma AD-Sofia Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.58	-2.51	-2.39	-2.20	-2.29

Competitive Comparison of Sopharma AD-Sofia's Beneish M-Score

For the Medical Distribution subindustry, Sopharma AD-Sofia'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.

Sopharma AD-Sofia's Beneish M-Score Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Sopharma AD-Sofia's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Sopharma AD-Sofia's Beneish M-Score falls into.

Sopharma AD-Sofia 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 Sopharma AD-Sofia 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 * 1.0926

0.528 * 0.99

0.404 * 1.003

0.892 * 1.1277

0.115 * 0.8998

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2373

4.679 * 0.033645

0.327 * 1.2246

-2.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €160.7 Mil.
Revenue was 252.23 + 230.94 + 226.704 + 235.534 = €945.4 Mil.
Gross Profit was 57.02 + 43.696 + 52.046 + 51.933 = €204.7 Mil.
Total Current Assets was €396.8 Mil.
Total Assets was €763.3 Mil.
Property, Plant and Equipment(Net PPE) was €180.3 Mil.
Depreciation, Depletion and Amortization(DDA) was €28.2 Mil.
Selling, General, & Admin. Expense(SGA) was €23.5 Mil.
Total Current Liabilities was €307.1 Mil.
Long-Term Debt & Capital Lease Obligation was €56.1 Mil.
Net Income was 9.193 + 7.199 + 15.733 + 16.26 = €48.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 58.308 + -32.89 + -9.123 + 6.407 = €22.7 Mil.

Total Receivables was €130.5 Mil.
Revenue was 223.945 + 209.661 + 204.351 + 200.429 = €838.4 Mil.
Gross Profit was 48.053 + 45.674 + 44.454 + 41.523 = €179.7 Mil.
Total Current Assets was €288.6 Mil.
Total Assets was €632.2 Mil.
Property, Plant and Equipment(Net PPE) was €189.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €26.3 Mil.
Selling, General, & Admin. Expense(SGA) was €16.8 Mil.
Total Current Liabilities was €205.4 Mil.
Long-Term Debt & Capital Lease Obligation was €40.2 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)
	=	(160.744 / 945.408)	/	(130.469 / 838.386)
	=	0.170026	/	0.155619
	=	1.0926

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)
	=	(179.704 / 838.386)	/	(204.695 / 945.408)
	=	0.214345	/	0.216515
	=	0.99

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 - (396.787 + 180.291) / 763.343)	/	(1 - (288.613 + 189.76) / 632.175)
	=	0.244012	/	0.24329
	=	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
	=	945.408	/	838.386
	=	1.1277

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))
	=	(26.265 / (26.265 + 189.76))	/	(28.167 / (28.167 + 180.291))
	=	0.121583	/	0.135121
	=	0.8998

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)
	=	(23.507 / 945.408)	/	(16.847 / 838.386)
	=	0.024864	/	0.020095
	=	1.2373

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)
	=	((56.055 + 307.115) / 763.343)	/	((40.239 + 205.358) / 632.175)
	=	0.475763	/	0.388495
	=	1.2246

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
	=	(48.385 - 0	-	22.702)	/	763.343
	=	0.033645

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.

Sopharma AD-Sofia has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

Sopharma AD-Sofia Beneish M-Score Related Terms

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Sopharma AD-Sofia (FRA:3JR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Sopharma AD-Sofia (FRA:3JR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SPH:Poland SFA:Bulgaria

Address

5 Lachezar Stanchev Street, Sopharma Business Towers, Building A, Floor 11, Sofia, BGR, 1756

Website

https://www.sopharmagroup.com

Sopharma AD-Sofia is a company engaged in the production of pharmaceutical products. Its principal activities include the production and trade of medicinal substances and finished drug forms; and research and development as well as engineering and implementation activities in the field of medicinal products. It is also focused on the distribution of pharmaceuticals like medical supplies, sanitary materials, vitamins, food supplements, and cosmetics. The company's segments are organized based on the production of finished products which include Tablet dosage forms, Ampoule dosage forms, Medical products, Other forms, and Other revenue. Geographically company operates in Bulgaria and internationally.

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