Interpump Group SpA (FRA:8IG) Beneish M-Score : -2.72 (As of Sep. 21, 2024)

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What is Interpump Group 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.

Good Sign:

Beneish M-Score -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:8IG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.36 Max: -2.01
Current: -2.72

During the past 13 years, the highest Beneish M-Score of Interpump Group SpA was -2.01. The lowest was -2.90. And the median was -2.36.

Interpump Group SpA Beneish M-Score Historical Data

The historical data trend for Interpump Group 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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Interpump Group SpA Beneish M-Score Chart

Interpump Group SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.55

-2.74

-2.19

-2.24

-2.55

Interpump Group SpA 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															-2.31	-2.42	-2.55	-2.64	-2.72

Competitive Comparison of Interpump Group SpA's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Interpump Group 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.

Interpump Group SpA's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Interpump Group SpA's Beneish M-Score distribution charts can be found below:

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

Interpump Group 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 Interpump Group 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 * 0.9462

0.528 * 1.0128

0.404 * 0.9947

0.892 * 0.962

0.115 * 1.0141

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0851

4.679 * -0.038217

0.327 * 0.8934

-2.72

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was €453 Mil.
Revenue was 549.837 + 545.867 + 519.597 + 535.908 = €2,151 Mil.
Gross Profit was 191.68 + 191.676 + 172.799 + 188.14 = €744 Mil.
Total Current Assets was €1,590 Mil.
Total Assets was €3,355 Mil.
Property, Plant and Equipment(Net PPE) was €820 Mil.
Depreciation, Depletion and Amortization(DDA) was €109 Mil.
Selling, General, & Admin. Expense(SGA) was €391 Mil.
Total Current Liabilities was €770 Mil.
Long-Term Debt & Capital Lease Obligation was €542 Mil.
Net Income was 62.111 + 67.236 + 36.067 + 71.623 = €237 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 92.033 + 78.158 + 91.36 + 103.721 = €365 Mil.

Total Receivables was €498 Mil.
Revenue was 592.189 + 592.345 + 533.025 + 518.647 = €2,236 Mil.
Gross Profit was 207.659 + 211.374 + 188.036 + 176.564 = €784 Mil.
Total Current Assets was €1,610 Mil.
Total Assets was €3,277 Mil.
Property, Plant and Equipment(Net PPE) was €739 Mil.
Depreciation, Depletion and Amortization(DDA) was €100 Mil.
Selling, General, & Admin. Expense(SGA) was €375 Mil.
Total Current Liabilities was €862 Mil.
Long-Term Debt & Capital Lease Obligation was €573 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)
	=	(453.446 / 2151.209)	/	(498.151 / 2236.206)
	=	0.210787	/	0.222766
	=	0.9462

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)
	=	(783.633 / 2236.206)	/	(744.295 / 2151.209)
	=	0.35043	/	0.345989
	=	1.0128

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 - (1589.934 + 819.678) / 3355.402)	/	(1 - (1609.631 + 739.042) / 3277.432)
	=	0.281871	/	0.28338
	=	0.9947

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
	=	2151.209	/	2236.206
	=	0.962

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))
	=	(99.579 / (99.579 + 739.042))	/	(108.705 / (108.705 + 819.678))
	=	0.118741	/	0.117091
	=	1.0141

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)
	=	(391.495 / 2151.209)	/	(375.039 / 2236.206)
	=	0.181988	/	0.167712
	=	1.0851

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)
	=	((542.463 + 769.942) / 3355.402)	/	((572.667 + 862.253) / 3277.432)
	=	0.391132	/	0.437818
	=	0.8934

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
	=	(237.037 - 0	-	365.272)	/	3355.402
	=	-0.038217

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.

Interpump Group SpA has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Interpump Group SpA Beneish M-Score Related Terms

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Interpump Group SpA Business Description

Industry

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IP:Italy IPm:UK 0EWD:UK

Address

Via E. Fermi, 25, Sant'Ilario D'Enza, ITA, 42049

Website

http://www.interpumpgroup.it

Interpump Group SpA is an Italy-based company that manufactures and markets high-pressure piston pumps and hydraulic products. The company operates through two segments. Its water jetting segment manufactures high- and ultra-high-pressure pumps. Its hydraulic segment manufactures power take-offs, cylinders, componentry engineering, hydraulic distributors, valves, and hoses and fittings. The company owns production facilities in Italy, the U.S., Germany, China, India, Brazil, Bulgaria, Romania, and South Korea. The company has a global presence, with the domestic Italian market accounting for a fraction of its revenue.

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