Empire Co (FRA:C15) Beneish M-Score : -3.01 (As of Jun. 21, 2024)

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What is Empire Co 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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:C15' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.82 Max: -2.28
Current: -3.01

During the past 13 years, the highest Beneish M-Score of Empire Co was -2.28. The lowest was -3.02. And the median was -2.82.

Empire Co Beneish M-Score Historical Data

The historical data trend for Empire Co'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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Empire Co Beneish M-Score Chart

Empire Co Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

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-2.97

-2.81

-2.89

-2.54

Empire Co Quarterly Data
	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24
Beneish M-Score	Get a 7-Day Free Trial															-2.54	-2.76	-2.95	-3.01	-

Competitive Comparison of Empire Co's Beneish M-Score

For the Grocery Stores subindustry, Empire Co'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.

Empire Co's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Empire Co's Beneish M-Score distribution charts can be found below:

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

Empire Co 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 Empire Co 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 * 1.0515

0.528 * 0.9729

0.404 * 0.9586

0.892 * 0.962

0.115 * 1.0427

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0351

4.679 * -0.094634

0.327 * 0.9971

-2.94

This Year (Apr24) TTM:

Last Year (Apr23) TTM:

Total Receivables was €588 Mil.
Revenue was 5051.571 + 5125.426 + 5353.257 + 5525.889 = €21,056 Mil.
Gross Profit was 1366.647 + 1359.116 + 1383.689 + 1419.535 = €5,529 Mil.
Total Current Assets was €2,115 Mil.
Total Assets was €11,444 Mil.
Property, Plant and Equipment(Net PPE) was €5,782 Mil.
Depreciation, Depletion and Amortization(DDA) was €733 Mil.
Selling, General, & Admin. Expense(SGA) was €4,789 Mil.
Total Current Liabilities was €2,652 Mil.
Long-Term Debt & Capital Lease Obligation was €4,540 Mil.
Net Income was 101.488 + 91.779 + 125.074 + 178.597 = €497 Mil.
Non Operating Income was 18.266 + 16.756 + 40.955 + 84.645 = €161 Mil.
Cash Flow from Operations was 379.302 + 457.393 + 180.118 + 402.492 = €1,419 Mil.

Total Receivables was €581 Mil.
Revenue was 5010.724 + 5178.118 + 5666.917 + 6031.741 = €21,888 Mil.
Gross Profit was 1324.984 + 1314.079 + 1449.725 + 1502.996 = €5,592 Mil.
Total Current Assets was €1,999 Mil.
Total Assets was €11,149 Mil.
Property, Plant and Equipment(Net PPE) was €5,545 Mil.
Depreciation, Depletion and Amortization(DDA) was €737 Mil.
Selling, General, & Admin. Expense(SGA) was €4,810 Mil.
Total Current Liabilities was €2,609 Mil.
Long-Term Debt & Capital Lease Obligation was €4,418 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)
	=	(588.004 / 21056.143)	/	(581.261 / 21887.5)
	=	0.027926	/	0.026557
	=	1.0515

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)
	=	(5591.784 / 21887.5)	/	(5528.987 / 21056.143)
	=	0.255478	/	0.262583
	=	0.9729

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 - (2115.369 + 5781.753) / 11444.025)	/	(1 - (1998.635 + 5545.452) / 11148.869)
	=	0.309935	/	0.323332
	=	0.9586

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
	=	21056.143	/	21887.5
	=	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))
	=	(737.298 / (737.298 + 5545.452))	/	(733.204 / (733.204 + 5781.753))
	=	0.117353	/	0.112542
	=	1.0427

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)
	=	(4789.218 / 21056.143)	/	(4809.636 / 21887.5)
	=	0.22745	/	0.219744
	=	1.0351

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)
	=	((4540.041 + 2652.254) / 11444.025)	/	((4418.1 + 2609.048) / 11148.869)
	=	0.628476	/	0.630301
	=	0.9971

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
	=	(496.938 - 160.622	-	1419.305)	/	11444.025
	=	-0.094634

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.

Empire Co has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

Empire Co Beneish M-Score Related Terms

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Empire Co (FRA:C15) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Empire Co Ltd (FRA:C15) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

EMLAF:USA EMP.A:Canada

Address

115 King Street, Stellarton, NS, CAN, B0K 1S0

Website

https://www.empireco.ca

Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.

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