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CyberAgent (FRA:CL2) Beneish M-Score : -2.40 (As of May. 01, 2024)


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What is CyberAgent 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:CL2' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Med: -2.76   Max: -2.25
Current: -2.4

During the past 13 years, the highest Beneish M-Score of CyberAgent was -2.25. The lowest was -3.10. And the median was -2.76.


CyberAgent Beneish M-Score Historical Data

The historical data trend for CyberAgent'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.

CyberAgent Beneish M-Score Chart

CyberAgent Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.63 -3.01 -3.10 -2.25 -2.40

CyberAgent Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 - - -2.40 - -

Competitive Comparison of CyberAgent's Beneish M-Score

For the Advertising Agencies subindustry, CyberAgent'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.


CyberAgent's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, CyberAgent's Beneish M-Score distribution charts can be found below:

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



CyberAgent 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 CyberAgent 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 * 1.1366+0.528 * 1.1545+0.404 * 1.1556+0.892 * 0.9113+0.115 * 1.2666
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.032418-0.327 * 1.2384
=-2.49

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was €528 Mil.
Revenue was €4,564 Mil.
Gross Profit was €1,219 Mil.
Total Current Assets was €2,226 Mil.
Total Assets was €3,028 Mil.
Property, Plant and Equipment(Net PPE) was €156 Mil.
Depreciation, Depletion and Amortization(DDA) was €51 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €845 Mil.
Long-Term Debt & Capital Lease Obligation was €659 Mil.
Net Income was €34 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €132 Mil.
Total Receivables was €510 Mil.
Revenue was €5,009 Mil.
Gross Profit was €1,545 Mil.
Total Current Assets was €2,071 Mil.
Total Assets was €2,705 Mil.
Property, Plant and Equipment(Net PPE) was €134 Mil.
Depreciation, Depletion and Amortization(DDA) was €61 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €916 Mil.
Long-Term Debt & Capital Lease Obligation was €168 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)
=(528.388 / 4564.469) / (510.138 / 5008.788)
=0.115761 / 0.101849
=1.1366

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)
=(1544.828 / 5008.788) / (1219.402 / 4564.469)
=0.308424 / 0.267151
=1.1545

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 - (2226.073 + 155.819) / 3028.327) / (1 - (2071.326 + 133.746) / 2704.658)
=0.213463 / 0.184713
=1.1556

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
=4564.469 / 5008.788
=0.9113

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))
=(61.22 / (61.22 + 133.746)) / (51.361 / (51.361 + 155.819))
=0.314003 / 0.247905
=1.2666

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)
=(0 / 4564.469) / (0 / 5008.788)
=0 / 0
=1

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)
=((658.736 + 845.211) / 3028.327) / ((168.131 + 916.459) / 2704.658)
=0.496626 / 0.401008
=1.2384

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
=(33.793 - 0 - 131.964) / 3028.327
=-0.032418

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.

CyberAgent has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.


CyberAgent Beneish M-Score Related Terms

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CyberAgent (FRA:CL2) Business Description

Traded in Other Exchanges
Address
hibuya Mark City West 1-12-1 Dogenzaka, Shibuya-Ku, Tokyo, JPN, 150-0043
CyberAgent is one of the top digital advertising companies in Japan. Its main business is internet advertising, which accounts for over 50% of companywide revenue. Currently, it is one of the market leaders, with about 12% market share in the digital advertisement market, alongside Dentsu with 13% and Hakuhodo with 11%. It also operates a video game segment (about 20% of total revenue) and a media segment, which is mainly Abema, an online TV program streaming site (about 20% of total revenue).

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