Kirin Holdings Co (FRA:KIR) Beneish M-Score : -2.42 (As of Dec. 12, 2024)

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What is Kirin Holdings 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:KIR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.53 Max: -1.66
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Kirin Holdings Co was -1.66. The lowest was -2.91. And the median was -2.53.

Kirin Holdings Co Beneish M-Score Historical Data

The historical data trend for Kirin Holdings 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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Kirin Holdings Co Beneish M-Score Chart

Kirin Holdings Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.76

-2.74

-2.73

-2.48

-2.53

Kirin Holdings Co 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															-2.49	-2.53	-2.38	-2.42	-

Competitive Comparison of Kirin Holdings Co's Beneish M-Score

For the Beverages - Brewers subindustry, Kirin Holdings 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.

Kirin Holdings Co's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Kirin Holdings Co's Beneish M-Score distribution charts can be found below:

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

Kirin Holdings 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 Kirin Holdings 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 * 1.1182

0.528 * 0.9939

0.404 * 1.0964

0.892 * 0.9929

0.115 * 1.0189

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0027

4.679 * -0.038537

0.327 * 1.0278

-2.53

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was €2,587 Mil.
Revenue was 3496.026 + 3081.2 + 3735.485 + 3660.92 = €13,974 Mil.
Gross Profit was 1606.2 + 1404.693 + 1723.755 + 1634.973 = €6,370 Mil.
Total Current Assets was €5,989 Mil.
Total Assets was €18,449 Mil.
Property, Plant and Equipment(Net PPE) was €3,737 Mil.
Depreciation, Depletion and Amortization(DDA) was €558 Mil.
Selling, General, & Admin. Expense(SGA) was €5,011 Mil.
Total Current Liabilities was €4,222 Mil.
Long-Term Debt & Capital Lease Obligation was €3,566 Mil.
Net Income was 184.317 + 159.046 + 183.322 + 329.067 = €856 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 405.05 + 244.912 + 479.009 + 437.74 = €1,567 Mil.

Total Receivables was €2,330 Mil.
Revenue was 3394.709 + 3146.744 + 3724.606 + 3807.166 = €14,073 Mil.
Gross Profit was 1504.348 + 1428.598 + 1742.633 + 1700.285 = €6,376 Mil.
Total Current Assets was €5,839 Mil.
Total Assets was €16,961 Mil.
Property, Plant and Equipment(Net PPE) was €3,808 Mil.
Depreciation, Depletion and Amortization(DDA) was €581 Mil.
Selling, General, & Admin. Expense(SGA) was €5,033 Mil.
Total Current Liabilities was €4,294 Mil.
Long-Term Debt & Capital Lease Obligation was €2,672 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)
	=	(2587.217 / 13973.631)	/	(2330.332 / 14073.225)
	=	0.18515	/	0.165586
	=	1.1182

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)
	=	(6375.864 / 14073.225)	/	(6369.621 / 13973.631)
	=	0.453049	/	0.455831
	=	0.9939

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 - (5989.031 + 3737.292) / 18448.818)	/	(1 - (5839.072 + 3807.609) / 16960.915)
	=	0.472794	/	0.431241
	=	1.0964

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
	=	13973.631	/	14073.225
	=	0.9929

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))
	=	(580.768 / (580.768 + 3807.609))	/	(557.899 / (557.899 + 3737.292))
	=	0.132342	/	0.129889
	=	1.0189

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)
	=	(5010.99 / 13973.631)	/	(5033.174 / 14073.225)
	=	0.358603	/	0.357642
	=	1.0027

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)
	=	((3566.122 + 4222.16) / 18448.818)	/	((2672.302 + 4294.084) / 16960.915)
	=	0.422156	/	0.410732
	=	1.0278

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
	=	(855.752 - 0	-	1566.711)	/	18448.818
	=	-0.038537

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.

Kirin Holdings Co has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.

Kirin Holdings Co Beneish M-Score Related Terms

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Kirin Holdings Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Kirin Holdings Co Ltd (FRA:KIR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KNBWY:USA KNBWF:USA 2503:Japan

Address

Nakano Central Park South, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, JPN, 164-0001

Website

http://www.kirinholdings.co.jp

Kirin is the second-largest brewer in Japan with a 28% market share. It holds a top share in the happoshu (low-malt beer) and new genre (no-malt beer) categories. Apart from beer, it also operates a wide range of alcoholic and soft beverage products in Japan. It has made several acquisitions, including Lion Nathan and National Foods in Australia, the second-largest Brazilian brewer Schincariol and Myanmar's biggest brewer over the past decade. It sold the businesses in Brazil and Myanmar in 2017 and 2023, respectively. In 2023, the company made a tender offer to bring Fancl on as a wholly owned subsidiary. Its revenue accounts for roughly 5% of Kirin's total sales. Its overseas business, which includes alcoholic and nonalcoholic beverages, represents about 40% of the group's sales.

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