Tai Kam Holdings (HKSE:08321) Beneish M-Score : -3.78 (As of Dec. 12, 2024)

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What is Tai Kam 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 -3.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08321' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78 Med: -3.78 Max: -3.78
Current: -3.78

During the past 10 years, the highest Beneish M-Score of Tai Kam Holdings was -3.78. The lowest was -3.78. And the median was -3.78.

Tai Kam Holdings Beneish M-Score Historical Data

The historical data trend for Tai Kam 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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Tai Kam Holdings Beneish M-Score Chart

Tai Kam Holdings Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

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-3.78

Tai Kam Holdings Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Apr24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-3.78

Competitive Comparison of Tai Kam Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Tai Kam 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.

Tai Kam Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Tai Kam Holdings's Beneish M-Score distribution charts can be found below:

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

Tai Kam 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 Tai Kam 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 * 1.5178

0.528 * 1.0617

0.404 * 0.6333

0.892 * 0.3918

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5071

4.679 * -0.24253

0.327 * 1.2036

-3.78

This Year (Apr24) TTM:

Last Year (Apr23) TTM:

Total Receivables was HK$23.96 Mil.
Revenue was HK$38.13 Mil.
Gross Profit was HK$0.72 Mil.
Total Current Assets was HK$80.07 Mil.
Total Assets was HK$83.91 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.00 Mil.
Selling, General, & Admin. Expense(SGA) was HK$3.94 Mil.
Total Current Liabilities was HK$19.12 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$-11.41 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$8.94 Mil.

Total Receivables was HK$40.29 Mil.
Revenue was HK$97.33 Mil.
Gross Profit was HK$1.96 Mil.
Total Current Assets was HK$87.21 Mil.
Total Assets was HK$93.99 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.02 Mil.
Selling, General, & Admin. Expense(SGA) was HK$19.82 Mil.
Total Current Liabilities was HK$17.79 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 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)
	=	(23.956 / 38.132)	/	(40.288 / 97.332)
	=	0.628239	/	0.413923
	=	1.5178

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)
	=	(1.962 / 97.332)	/	(0.724 / 38.132)
	=	0.020158	/	0.018987
	=	1.0617

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 - (80.071 + 0) / 83.907)	/	(1 - (87.205 + 0) / 93.99)
	=	0.045717	/	0.072189
	=	0.6333

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
	=	38.132	/	97.332
	=	0.3918

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))
	=	(0.016 / (0.016 + 0))	/	(0 / (0 + 0))
	=	1	/
	=	1

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)
	=	(3.937 / 38.132)	/	(19.816 / 97.332)
	=	0.103247	/	0.203592
	=	0.5071

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)
	=	((0 + 19.12) / 83.907)	/	((0 + 17.794) / 93.99)
	=	0.227871	/	0.189318
	=	1.2036

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
	=	(-11.409 - 0	-	8.941)	/	83.907
	=	-0.24253

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.

Tai Kam Holdings has a M-score of -3.78 suggests that the company is unlikely to be a manipulator.

Tai Kam Holdings Beneish M-Score Related Terms

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Tai Kam Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Tai Kam Holdings Ltd (HKSE:08321) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

99-105 Des Voeux Road Central, 2/F, Dah Sing Life Building, Hong Kong, HKG

Website

https://www.taikamholdings.com

Tai Kam Holdings Ltd is an investment holding company principally engaged in site formation works and renovation works. Geographically, it operates and derives revenue from Hong Kong. The company undertakes slope and retaining wall works as the main contractor. The slope works of the group involve the construction of landslips, the construction of retaining walls, the construction of inclined pipes, and others.

Tai Kam Holdings Headlines

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