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Nuvei (FRA:62E) Beneish M-Score : -2.41 (As of Oct. 31, 2024)


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What is Nuvei 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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:62E' s Beneish M-Score Range Over the Past 10 Years
Min: -2.64   Med: -2.31   Max: -1.84
Current: -2.41

During the past 7 years, the highest Beneish M-Score of Nuvei was -1.84. The lowest was -2.64. And the median was -2.31.


Nuvei Beneish M-Score Historical Data

The historical data trend for Nuvei'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.

Nuvei Beneish M-Score Chart

Nuvei Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.22 -2.44 -2.45 -2.16

Nuvei Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.99 -2.10 -2.16 -2.14 -2.41

Competitive Comparison of Nuvei's Beneish M-Score

For the Software - Infrastructure subindustry, Nuvei'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.


Nuvei's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Nuvei's Beneish M-Score distribution charts can be found below:

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



Nuvei 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 Nuvei 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 * 1.0998+0.528 * 0.9854+0.404 * 0.8376+0.892 * 1.3007+0.115 * 0.9597
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.921+4.679 * -0.046595-0.327 * 1.1244
=-2.44

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was €138 Mil.
Revenue was 320.949 + 308.3 + 294.831 + 285.646 = €1,210 Mil.
Gross Profit was 257.741 + 248.749 + 240.972 + 233.502 = €981 Mil.
Total Current Assets was €1,769 Mil.
Total Assets was €4,888 Mil.
Property, Plant and Equipment(Net PPE) was €37 Mil.
Depreciation, Depletion and Amortization(DDA) was €137 Mil.
Selling, General, & Admin. Expense(SGA) was €725 Mil.
Total Current Liabilities was €1,665 Mil.
Long-Term Debt & Capital Lease Obligation was €1,156 Mil.
Net Income was 3.219 + -6.314 + 10.852 + -18.566 = €-11 Mil.
Non Operating Income was -7.948 + -8.234 + 9.739 + -12.212 = €-19 Mil.
Cash Flow from Operations was 85.812 + 14.472 + 74.028 + 61.31 = €236 Mil.
Total Receivables was €96 Mil.
Revenue was 283.385 + 239.569 + 208 + 199.117 = €930 Mil.
Gross Profit was 233.611 + 188.576 + 160.643 + 160.371 = €743 Mil.
Total Current Assets was €987 Mil.
Total Assets was €4,132 Mil.
Property, Plant and Equipment(Net PPE) was €34 Mil.
Depreciation, Depletion and Amortization(DDA) was €106 Mil.
Selling, General, & Admin. Expense(SGA) was €605 Mil.
Total Current Liabilities was €982 Mil.
Long-Term Debt & Capital Lease Obligation was €1,139 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)
=(137.881 / 1209.726) / (96.383 / 930.071)
=0.113977 / 0.10363
=1.0998

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)
=(743.201 / 930.071) / (980.964 / 1209.726)
=0.79908 / 0.810898
=0.9854

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 - (1768.705 + 36.96) / 4888.395) / (1 - (986.686 + 34.324) / 4132.464)
=0.630622 / 0.752929
=0.8376

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
=1209.726 / 930.071
=1.3007

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))
=(106.039 / (106.039 + 34.324)) / (136.718 / (136.718 + 36.96))
=0.755463 / 0.787192
=0.9597

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)
=(724.616 / 1209.726) / (604.894 / 930.071)
=0.598992 / 0.650374
=0.921

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)
=((1155.691 + 1664.93) / 4888.395) / ((1139.076 + 981.575) / 4132.464)
=0.577003 / 0.513169
=1.1244

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
=(-10.809 - -18.655 - 235.622) / 4888.395
=-0.046595

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.

Nuvei has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


Nuvei Business Description

Traded in Other Exchanges
Address
1100 Rene-Levesque Boulevard West, 9th Floor, Montreal, QC, CAN, H3B 4N4
Nuvei Corp is a provider of payment technology solutions to merchants and partners. The solutions provided are mobile payments, online payments, and In-store payments. Its geographical segments are North America; Europe, the Middle East, and Africa; Latin America; and the Asia Pacific. The vast majority of the company's revenue is generated from North America and EMEA.

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