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Ebara (FRA:EAR) Beneish M-Score : -2.48 (As of May. 17, 2024)


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What is Ebara 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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:EAR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Med: -2.51   Max: -2.16
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Ebara was -2.16. The lowest was -3.24. And the median was -2.51.


Ebara Beneish M-Score Historical Data

The historical data trend for Ebara'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.

Ebara Beneish M-Score Chart

Ebara Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.42 -2.90 -2.56 -2.21 -2.50

Ebara 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 -2.33 -2.43 -2.43 -2.50 -2.48

Competitive Comparison of Ebara's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Ebara'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.


Ebara's Beneish M-Score Distribution in the Industrial Products Industry

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

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



Ebara 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 Ebara 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 * 0.9761+0.528 * 0.9412+0.404 * 0.9988+0.892 * 0.9754+0.115 * 0.9673
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0261+4.679 * -0.012097-0.327 * 0.9561
=-2.61

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was €1,662 Mil.
Revenue was 1190.214 + 1325.445 + 1187.574 + 1173.759 = €4,877 Mil.
Gross Profit was 372.394 + 458.062 + 382.652 + 373.684 = €1,587 Mil.
Total Current Assets was €4,148 Mil.
Total Assets was €5,855 Mil.
Property, Plant and Equipment(Net PPE) was €1,120 Mil.
Depreciation, Depletion and Amortization(DDA) was €175 Mil.
Selling, General, & Admin. Expense(SGA) was €1,013 Mil.
Total Current Liabilities was €2,376 Mil.
Long-Term Debt & Capital Lease Obligation was €699 Mil.
Net Income was 90.263 + 161.629 + 90.769 + 81.514 = €424 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 120.396 + 138.306 + -24.426 + 260.724 = €495 Mil.
Total Receivables was €1,745 Mil.
Revenue was 1286.225 + 1405.111 + 1181.646 + 1127.119 = €5,000 Mil.
Gross Profit was 371.596 + 475.992 + 355.308 + 328.334 = €1,531 Mil.
Total Current Assets was €4,230 Mil.
Total Assets was €5,997 Mil.
Property, Plant and Equipment(Net PPE) was €1,165 Mil.
Depreciation, Depletion and Amortization(DDA) was €175 Mil.
Selling, General, & Admin. Expense(SGA) was €1,012 Mil.
Total Current Liabilities was €2,793 Mil.
Long-Term Debt & Capital Lease Obligation was €502 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)
=(1661.745 / 4876.992) / (1745.418 / 5000.101)
=0.340732 / 0.349077
=0.9761

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)
=(1531.23 / 5000.101) / (1586.792 / 4876.992)
=0.30624 / 0.325363
=0.9412

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 - (4148.212 + 1120.081) / 5854.858) / (1 - (4230.124 + 1165.394) / 5997.029)
=0.100184 / 0.100301
=0.9988

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
=4876.992 / 5000.101
=0.9754

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))
=(174.934 / (174.934 + 1165.394)) / (174.699 / (174.699 + 1120.081))
=0.130516 / 0.134926
=0.9673

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)
=(1012.643 / 4876.992) / (1011.752 / 5000.101)
=0.207637 / 0.202346
=1.0261

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)
=((699.297 + 2376.216) / 5854.858) / ((501.742 + 2792.931) / 5997.029)
=0.525293 / 0.549384
=0.9561

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
=(424.175 - 0 - 495) / 5854.858
=-0.012097

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.

Ebara has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


Ebara (FRA:EAR) Business Description

Traded in Other Exchanges
Address
11-1, Haneda Asahi-cho, Ohta-ku, Tokyo, JPN, 144-8510
Ebara Corp is a Japan-based company that operates through three business segments. The fluid machinery and systems business provides pumps, compressors, refrigeration, blowers, cooling towers, energy-related systems, machinery plants, and other related solutions. The environmental engineering business is involved in engineering, building, operating, and maintaining environmental and energy-related infrastructure. The precision machinery business develops and manufactures vacuum pumps, chemical mechanical polishing systems, plating systems, and other semiconductor manufacturing equipment and components. The company generates the majority of its revenue from Japan andthe rest of Asia.