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GuruFocus has detected 6 Warning Signs with At Home Group Inc $HOME.
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At Home Group Inc (NYSE:HOME)
Beneish M-Score
-2.29 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

At Home Group Inc has a M-score of -2.29 suggests that the company is not a manipulator.

HOME' s Beneish M-Score Range Over the Past 10 Years
Min: -2.31   Max: -2.29
Current: -2.29

-2.31
-2.29

During the past 4 years, the highest Beneish M-Score of At Home Group Inc was -2.29. The lowest was -2.31. And the median was -2.30.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 At Home Group Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 0.9988+0.404 * 0.8884+0.892 * 1.2333+0.115 * 0.9746
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0318+4.679 * -0.0048-0.327 * 0.8271
=-2.29

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Apr17) TTM:Last Year (Apr16) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 211.841 + 234.514 + 170.678 + 188.364 = $805.4 Mil.
Gross Profit was 71.878 + 75.73 + 51.395 + 62.05 = $261.1 Mil.
Total Current Assets was $273.8 Mil.
Total Assets was $1,263.1 Mil.
Property, Plant and Equipment(Net PPE) was $375.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.8 Mil.
Selling, General & Admin. Expense(SGA) was $182.3 Mil.
Total Current Liabilities was $287.0 Mil.
Long-Term Debt was $319.3 Mil.
Net Income was 10.049 + 15.258 + -1.856 + 6.338 = $29.8 Mil.
Non Operating Income was 0 + 0 + -2.715 + 0 = $-2.7 Mil.
Cash Flow from Operations was 20.849 + 16.499 + -15.48 + 16.639 = $38.5 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 172.079 + 185.506 + 139.431 + 156.007 = $653.0 Mil.
Gross Profit was 58.306 + 58.896 + 41.438 + 52.772 = $211.4 Mil.
Total Current Assets was $193.3 Mil.
Total Assets was $1,081.4 Mil.
Property, Plant and Equipment(Net PPE) was $296.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.5 Mil.
Selling, General & Admin. Expense(SGA) was $143.2 Mil.
Total Current Liabilities was $186.1 Mil.
Long-Term Debt was $441.4 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(0 / 805.397) / (0 / 653.023)
=0 / 0
=1

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)
=(211.412 / 653.023) / (261.053 / 805.397)
=0.32374357 / 0.32412959
=0.9988

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (273.848 + 375.541) / 1263.147) / (1 - (193.289 + 296.649) / 1081.399)
=0.48589594 / 0.54694058
=0.8884

4. SGI = Sales Growth Index

Ratio of sales 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
=805.397 / 653.023
=1.2333

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(30.525 / (30.525 + 296.649)) / (39.755 / (39.755 + 375.541))
=0.09329898 / 0.0957269
=0.9746

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(182.253 / 805.397) / (143.219 / 653.023)
=0.22628964 / 0.21931693
=1.0318

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((319.285 + 286.98) / 1263.147) / ((441.421 + 186.141) / 1081.399)
=0.47996393 / 0.58032419
=0.8271

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
=(29.789 - -2.715 - 38.507) / 1263.147
=-0.0048

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

At Home Group Inc has a M-score of -2.29 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

At Home Group Inc Annual Data

Jan14Jan15Jan16Jan17
DSRI 1
GMI 0.9965
AQI 0.9039
SGI 1.2306
DEPI 0.9725
SGAI 1.0212
LVGI 0.8123
TATA -0.0113
M-score -2.31

At Home Group Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DSRI 111
GMI 1.0070.99650.9988
AQI 0.92710.90390.8884
SGI 1.22871.23061.2333
DEPI 1.00970.97250.9746
SGAI 0.96791.02121.0318
LVGI 1.06260.81230.8271
TATA 0.0032-0.0113-0.0048
M-score -2.30-2.31-2.29
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