Newlat Food SpA (FRA:6NF) Beneish M-Score : 0.79 (As of Dec. 12, 2024)

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What is Newlat Food SpA 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.

Warning Sign:

Beneish M-Score 0.79 higher than -1.78, which implies that the company might have manipulated its financial results.

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

FRA:6NF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.32 Max: 0.79
Current: 0.79

During the past 8 years, the highest Beneish M-Score of Newlat Food SpA was 0.79. The lowest was -3.20. And the median was -2.32.

Newlat Food SpA Beneish M-Score Historical Data

The historical data trend for Newlat Food SpA'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.

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Newlat Food SpA Beneish M-Score Chart

Newlat Food SpA Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.80

-2.40

-2.63

-2.02

-2.96

Newlat Food SpA Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.00	-2.96	-2.66	-2.84	0.79

Competitive Comparison of Newlat Food SpA's Beneish M-Score

For the Packaged Foods subindustry, Newlat Food SpA'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.

Newlat Food SpA's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Newlat Food SpA's Beneish M-Score distribution charts can be found below:

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

Newlat Food SpA 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 Newlat Food SpA 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 * 4.3759

0.528 * 1.049

0.404 * 0.6645

0.892 * 1.3271

0.115 * 2.0234

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1195

4.679 * 0.004044

0.327 * 1.3972

0.79

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €656 Mil.
Revenue was 526.178 + 170.557 + 199.572 + 192.673 = €1,089 Mil.
Gross Profit was 90.389 + 42.945 + 33.395 + 28.456 = €195 Mil.
Total Current Assets was €1,502 Mil.
Total Assets was €2,363 Mil.
Property, Plant and Equipment(Net PPE) was €665 Mil.
Depreciation, Depletion and Amortization(DDA) was €53 Mil.
Selling, General, & Admin. Expense(SGA) was €168 Mil.
Total Current Liabilities was €989 Mil.
Long-Term Debt & Capital Lease Obligation was €287 Mil.
Net Income was 160.048 + 3.841 + 4.55 + -1.663 = €167 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 102.588 + 32.319 + 15.7 + 6.614 = €157 Mil.

Total Receivables was €113 Mil.
Revenue was 187.372 + 205.961 + 207.333 + 219.902 = €821 Mil.
Gross Profit was 32.139 + 42.93 + 33.629 + 45.588 = €154 Mil.
Total Current Assets was €520 Mil.
Total Assets was €826 Mil.
Property, Plant and Equipment(Net PPE) was €203 Mil.
Depreciation, Depletion and Amortization(DDA) was €35 Mil.
Selling, General, & Admin. Expense(SGA) was €113 Mil.
Total Current Liabilities was €281 Mil.
Long-Term Debt & Capital Lease Obligation was €38 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)
	=	(656.452 / 1088.98)	/	(113.04 / 820.568)
	=	0.602814	/	0.137758
	=	4.3759

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)
	=	(154.286 / 820.568)	/	(195.185 / 1088.98)
	=	0.188023	/	0.179237
	=	1.049

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 - (1502.438 + 665.201) / 2362.946)	/	(1 - (520.223 + 203.241) / 826.236)
	=	0.082654	/	0.124386
	=	0.6645

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
	=	1088.98	/	820.568
	=	1.3271

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))
	=	(35.351 / (35.351 + 203.241))	/	(52.557 / (52.557 + 665.201))
	=	0.148165	/	0.073224
	=	2.0234

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)
	=	(168.285 / 1088.98)	/	(113.274 / 820.568)
	=	0.154535	/	0.138043
	=	1.1195

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)
	=	((286.938 + 988.692) / 2362.946)	/	((38.108 + 281.137) / 826.236)
	=	0.539847	/	0.386385
	=	1.3972

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
	=	(166.776 - 0	-	157.221)	/	2362.946
	=	0.004044

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.

Newlat Food SpA has a M-score of 0.79 signals that the company is likely to be a manipulator.

Newlat Food SpA Beneish M-Score Related Terms

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Newlat Food SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Newlat Food SpA (FRA:6NF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NWL:Italy

Address

Via JF Kennedy 16, Reggio Emilia, ITA, 42124

Website

https://www.newlat.it

Newlat Food SpA is a agro-food company. It is engaged in the processing, packaging, sale, and distribution of food and beverages. The company has various operating segments which include Pasta, Milk Products, Bakery Products, Dairy Products, Special Products, Instant noodles, and Other activities. The company operates in Italy, Germany, and other countries.

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