Indigo Star Holdings (HKSE:08373) Beneish M-Score : -3.25 (As of Mar. 23, 2025)

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What is Indigo Star 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 -3.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08373' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25 Med: -2.1 Max: 14.14
Current: -3.25

During the past 9 years, the highest Beneish M-Score of Indigo Star Holdings was 14.14. The lowest was -3.25. And the median was -2.10.

Indigo Star Holdings Beneish M-Score Historical Data

The historical data trend for Indigo Star 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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Indigo Star Holdings Beneish M-Score Chart

Indigo Star Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.63

-2.78

-2.61

-2.20

-3.25

Indigo Star Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-3.25	-

Competitive Comparison of Indigo Star Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Indigo Star 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.

Indigo Star Holdings's Beneish M-Score Distribution in the Construction Industry

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

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

Indigo Star 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 Indigo Star 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 * 0.828

0.528 * 0.9615

0.404 * 0.5079

0.892 * 1.3821

0.115 * 0.9474

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9985

4.679 * -0.148901

0.327 * 1.0849

-3.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$85.2 Mil.
Revenue was HK$259.8 Mil.
Gross Profit was HK$67.0 Mil.
Total Current Assets was HK$156.8 Mil.
Total Assets was HK$198.9 Mil.
Property, Plant and Equipment(Net PPE) was HK$40.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$56.6 Mil.
Total Current Liabilities was HK$109.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5.3 Mil.
Net Income was HK$5.9 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$35.5 Mil.

Total Receivables was HK$74.5 Mil.
Revenue was HK$188.0 Mil.
Gross Profit was HK$46.6 Mil.
Total Current Assets was HK$120.5 Mil.
Total Assets was HK$165.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$42.8 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$41.0 Mil.
Total Current Liabilities was HK$82.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5.5 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)
	=	(85.204 / 259.826)	/	(74.456 / 187.989)
	=	0.327927	/	0.396066
	=	0.828

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)
	=	(46.593 / 187.989)	/	(66.976 / 259.826)
	=	0.24785	/	0.257773
	=	0.9615

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 - (156.753 + 40.576) / 198.918)	/	(1 - (120.45 + 42.763) / 165.821)
	=	0.007988	/	0.015728
	=	0.5079

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
	=	259.826	/	187.989
	=	1.3821

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))
	=	(4.533 / (4.533 + 42.763))	/	(4.567 / (4.567 + 40.576))
	=	0.095843	/	0.101167
	=	0.9474

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)
	=	(56.552 / 259.826)	/	(40.977 / 187.989)
	=	0.217653	/	0.217976
	=	0.9985

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)
	=	((5.294 + 109.27) / 198.918)	/	((5.512 + 82.513) / 165.821)
	=	0.575936	/	0.530843
	=	1.0849

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
	=	(5.857 - 0	-	35.476)	/	198.918
	=	-0.148901

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.

Indigo Star Holdings has a M-score of -3.25 suggests that the company is unlikely to be a manipulator.

Indigo Star Holdings Beneish M-Score Related Terms

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Indigo Star Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Indigo Star Holdings Ltd (HKSE:08373) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5 Upper Aljunied Link, No. 03-08 Quartz Industrial Building, Singapore, SGP, 367903

Website

https://www.indigostar.sg

Indigo Star Holdings Ltd is a subcontractor specializing in providing reinforced concrete works. The company offers structural reinforced and concrete works in general building and civil engineering works. It offers steel reinforcement works, formwork erection, and concrete works. It provides such services either individually or as a total package comprising all three, depending on the requirements of the customers. The group is involved in different types of general building and civil engineering projects, which include residential housing, offices, commercial, industrial, and institutional developments, special purpose constructions, MRT stations, and infrastructure. It has two segments Construction contract and Sales of tiles. All its revenue is derived from Singapore.

Executives

Chan Ming	2201 Interest of corporation controlled by you
Splendor Investment Limited	2101 Beneficial owner
Claudia International Limited	2101 Beneficial owner
Chan Wai Kin	2201 Interest of corporation controlled by you
Amber Capital Holdings Limited	2101 Beneficial owner
Goh Cheng Seng	2101 Beneficial owner
Tan So Kuan	2101 Beneficial owner

Indigo Star Holdings Headlines

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