Nexion Technologies (HKSE:08420) Beneish M-Score : -2.46 (As of Jun. 23, 2024)

View and export this data going back to 2017. Start your Free Trial

What is Nexion Technologies 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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08420' s Beneish M-Score Range Over the Past 10 Years
Min: -4.08 Med: -2.24 Max: -0.8
Current: -2.46

During the past 10 years, the highest Beneish M-Score of Nexion Technologies was -0.80. The lowest was -4.08. And the median was -2.24.

Nexion Technologies Beneish M-Score Historical Data

The historical data trend for Nexion Technologies'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.

* Premium members only.

Nexion Technologies Beneish M-Score Chart

Nexion Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.80

-2.06

-4.08

-2.23

-2.46

Nexion Technologies 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															-2.23	-	-	-	-2.46

Competitive Comparison of Nexion Technologies's Beneish M-Score

For the Software - Infrastructure subindustry, Nexion Technologies'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.

Nexion Technologies's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Nexion Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Nexion Technologies's Beneish M-Score falls into.

Nexion Technologies 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 Nexion Technologies 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 * 2.2498

0.528 * 0.6729

0.404 * 0.7923

0.892 * 0.5175

0.115 * 0.9388

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2662

4.679 * -0.093659

0.327 * 0.8609

-2.46

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$7.05 Mil.
Revenue was HK$12.71 Mil.
Gross Profit was HK$7.08 Mil.
Total Current Assets was HK$32.97 Mil.
Total Assets was HK$40.86 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.07 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4.77 Mil.
Selling, General, & Admin. Expense(SGA) was HK$3.31 Mil.
Total Current Liabilities was HK$8.43 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.01 Mil.
Net Income was HK$-13.76 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-9.93 Mil.

Total Receivables was HK$6.06 Mil.
Revenue was HK$24.56 Mil.
Gross Profit was HK$9.21 Mil.
Total Current Assets was HK$41.84 Mil.
Total Assets was HK$55.78 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.46 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.68 Mil.
Selling, General, & Admin. Expense(SGA) was HK$5.05 Mil.
Total Current Liabilities was HK$13.38 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)
	=	(7.052 / 12.707)	/	(6.057 / 24.555)
	=	0.55497	/	0.246671
	=	2.2498

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)
	=	(9.21 / 24.555)	/	(7.083 / 12.707)
	=	0.375076	/	0.557409
	=	0.6729

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 - (32.965 + 0.07) / 40.861)	/	(1 - (41.839 + 0.459) / 55.782)
	=	0.191527	/	0.241727
	=	0.7923

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
	=	12.707	/	24.555
	=	0.5175

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))
	=	(5.683 / (5.683 + 0.459))	/	(4.772 / (4.772 + 0.07))
	=	0.925269	/	0.985543
	=	0.9388

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)
	=	(3.311 / 12.707)	/	(5.053 / 24.555)
	=	0.260565	/	0.205783
	=	1.2662

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)
	=	((0.008 + 8.427) / 40.861)	/	((0 + 13.375) / 55.782)
	=	0.206432	/	0.239773
	=	0.8609

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
	=	(-13.761 - 0	-	-9.934)	/	40.861
	=	-0.093659

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.

Nexion Technologies has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Nexion Technologies Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Nexion Technologies's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Nexion Technologies (HKSE:08420) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nexion Technologies Ltd (HKSE:08420) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

18 Howard Road, Unit No. 10-03, Novelty BizCentre, Singapore, SGP, 369585

Website

http://www.nexion.com.hk

Nexion Technologies Ltd is an investment holding company. It is engaged in the provision of cyber infrastructure solutions services, provision of cyber security solutions services, and software-as-a-service. The group has three segments: Cyber infrastructure solutions, including maintenance and support service income; Cyber security solutions; and SaaS. The group has a business presence in Hong Kong, Singapore, Malaysia, the PRC and other countries, of which key revenue is generated from Vietnam.

Executives

Ubs Group Ag	2201 Interest of corporation controlled by you
Alpha Sense Investments Limited	2101 Beneficial owner
Foo Moo Teng	2101 Beneficial owner
Xox (hong Kong) Limited	2101 Beneficial owner
Xox Bhd.	2201 Interest of corporation controlled by you
Lazarus Securities Pty Ltd	2106 Person having a security interest in shares

Nexion Technologies (HKSE:08420) Headlines

No Headlines