Sally Beauty Holdings (FRA:S7V) Beneish M-Score : -2.44 (As of Dec. 15, 2024)

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What is Sally Beauty Holdings 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:S7V' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39 Med: -2.59 Max: -2.26
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Sally Beauty Holdings was -2.26. The lowest was -3.39. And the median was -2.59.

Sally Beauty Holdings Beneish M-Score Historical Data

The historical data trend for Sally Beauty Holdings'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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Sally Beauty Holdings Beneish M-Score Chart

Sally Beauty Holdings Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Beneish M-Score

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-3.39

-2.52

-2.26

-2.51

-2.44

Sally Beauty Holdings 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															-2.51	-2.54	-2.50	-2.51	-2.44

Competitive Comparison of Sally Beauty Holdings's Beneish M-Score

For the Specialty Retail subindustry, Sally Beauty Holdings'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.

Sally Beauty Holdings's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Beneish M-Score distribution charts can be found below:

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

Sally Beauty Holdings 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 Sally Beauty Holdings 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 * 1.1946

0.528 * 1.0012

0.404 * 0.9856

0.892 * 0.978

0.115 * 0.9084

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0364

4.679 * -0.033613

0.327 * 0.9527

-2.48

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €83 Mil.
Revenue was 842.46 + 875.434 + 835.692 + 854.004 = €3,408 Mil.
Gross Profit was 431.76 + 446.74 + 426.026 + 428.4 = €1,733 Mil.
Total Current Assets was €1,176 Mil.
Total Assets was €2,516 Mil.
Property, Plant and Equipment(Net PPE) was €768 Mil.
Depreciation, Depletion and Amortization(DDA) was €101 Mil.
Selling, General, & Admin. Expense(SGA) was €1,474 Mil.
Total Current Liabilities was €534 Mil.
Long-Term Debt & Capital Lease Obligation was €1,314 Mil.
Net Income was 43.298 + 35.046 + 26.904 + 35.204 = €140 Mil.
Non Operating Income was 0.393 + -0.356 + -0.058 + 0.078 = €0 Mil.
Cash Flow from Operations was 99.716 + 44.494 + 33.985 + 46.785 = €225 Mil.

Total Receivables was €71 Mil.
Revenue was 863.311 + 859.32 + 858.077 + 903.46 = €3,484 Mil.
Gross Profit was 437.169 + 438.153 + 437.429 + 461.214 = €1,774 Mil.
Total Current Assets was €1,151 Mil.
Total Assets was €2,554 Mil.
Property, Plant and Equipment(Net PPE) was €814 Mil.
Depreciation, Depletion and Amortization(DDA) was €96 Mil.
Selling, General, & Admin. Expense(SGA) was €1,454 Mil.
Total Current Liabilities was €543 Mil.
Long-Term Debt & Capital Lease Obligation was €1,425 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)
	=	(83.061 / 3407.59)	/	(71.095 / 3484.168)
	=	0.024375	/	0.020405
	=	1.1946

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)
	=	(1773.965 / 3484.168)	/	(1732.926 / 3407.59)
	=	0.50915	/	0.508549
	=	1.0012

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 - (1176.088 + 768.053) / 2516.402)	/	(1 - (1150.633 + 813.725) / 2553.559)
	=	0.227412	/	0.230737
	=	0.9856

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
	=	3407.59	/	3484.168
	=	0.978

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))
	=	(95.703 / (95.703 + 813.725))	/	(100.634 / (100.634 + 768.053))
	=	0.105234	/	0.115846
	=	0.9084

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)
	=	(1473.994 / 3407.59)	/	(1454.116 / 3484.168)
	=	0.432562	/	0.41735
	=	1.0364

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)
	=	((1313.542 + 533.995) / 2516.402)	/	((1425.066 + 542.764) / 2553.559)
	=	0.734198	/	0.770622
	=	0.9527

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
	=	(140.452 - 0.057	-	224.98)	/	2516.402
	=	-0.033613

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.

Sally Beauty Holdings has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.

Sally Beauty Holdings Beneish M-Score Related Terms

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Sally Beauty Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sally Beauty Holdings Inc (FRA:S7V) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SBH:USA

Address

3001 Colorado Boulevard, Denton, TX, USA, 76210

Website

https://www.sallybeautyholdings.com

Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. Sally Beauty operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Colombia, Mexico, Peru, France, Ireland, Spain, Germany, and the Netherlands. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. Product offerings include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.

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