Classified Group (Holdings) (HKSE:08232) Beneish M-Score : -3.62 (As of May. 18, 2024)

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What is Classified Group (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 -3.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Classified Group (Holdings)'s Beneish M-Score or its related term are showing as below:

HKSE:08232' s Beneish M-Score Range Over the Past 10 Years
Min: -6.16 Med: -3.46 Max: -1.76
Current: -3.62

During the past 10 years, the highest Beneish M-Score of Classified Group (Holdings) was -1.76. The lowest was -6.16. And the median was -3.46.

Classified Group (Holdings) Beneish M-Score Historical Data

The historical data trend for Classified Group (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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Classified Group (Holdings) Beneish M-Score Chart

Classified Group (Holdings) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.10

-1.76

-3.87

-6.16

-3.62

Classified Group (Holdings) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-6.16	-	-	-	-3.62

Competitive Comparison of Classified Group (Holdings)'s Beneish M-Score

For the Restaurants subindustry, Classified Group (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.

Classified Group (Holdings)'s Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Classified Group (Holdings)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Classified Group (Holdings)'s Beneish M-Score falls into.

Classified Group (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 Classified Group (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 * 1.4015

0.528 * 0.781

0.404 * 0.8765

0.892 * 0.9704

0.115 * 1.8704

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8957

4.679 * -0.299271

0.327 * 1.103

-3.62

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$1.56 Mil.
Revenue was HK$36.36 Mil.
Gross Profit was HK$8.87 Mil.
Total Current Assets was HK$32.99 Mil.
Total Assets was HK$35.93 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.48 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.03 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1.81 Mil.
Total Current Liabilities was HK$16.64 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.13 Mil.
Net Income was HK$-15.35 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-4.59 Mil.

Total Receivables was HK$1.15 Mil.
Revenue was HK$37.47 Mil.
Gross Profit was HK$7.14 Mil.
Total Current Assets was HK$37.51 Mil.
Total Assets was HK$38.93 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.84 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.52 Mil.
Selling, General, & Admin. Expense(SGA) was HK$2.08 Mil.
Total Current Liabilities was HK$16.15 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.30 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)
	=	(1.564 / 36.357)	/	(1.15 / 37.465)
	=	0.043018	/	0.030695
	=	1.4015

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)
	=	(7.138 / 37.465)	/	(8.869 / 36.357)
	=	0.190524	/	0.243942
	=	0.781

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 - (32.993 + 2.479) / 35.934)	/	(1 - (37.512 + 0.843) / 38.926)
	=	0.012857	/	0.014669
	=	0.8765

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
	=	36.357	/	37.465
	=	0.9704

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))
	=	(4.518 / (4.518 + 0.843))	/	(2.033 / (2.033 + 2.479))
	=	0.842753	/	0.450576
	=	1.8704

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)
	=	(1.808 / 36.357)	/	(2.08 / 37.465)
	=	0.049729	/	0.055518
	=	0.8957

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)
	=	((1.126 + 16.64) / 35.934)	/	((1.295 + 16.153) / 38.926)
	=	0.494406	/	0.448235
	=	1.103

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
	=	(-15.346 - 0	-	-4.592)	/	35.934
	=	-0.299271

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.

Classified Group (Holdings) has a M-score of -3.62 suggests that the company is unlikely to be a manipulator.

Classified Group (Holdings) Beneish M-Score Related Terms

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Classified Group (Holdings) (HKSE:08232) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Classified Group (Holdings) Ltd (HKSE:08232) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

30 Wong Chuk Hang Road, 2nd Floor, Cheung Tak Industrial Building, Wong Chuk Hang, Hong Kong, HKG

Website

https://www.classifiedgroup.com.hk

Classified Group (Holdings) Ltd is a food and beverage company. It is engaged in the Casual restaurant operations segment in which customers would place orders at the front desk and basic table service is provided by the delivery of ordered food to the table. The casual restaurants aim to provide a more casual and relaxing atmosphere. All the group's operations are located in Hong Kong.

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