HV Bancorp (HV Bancorp) Beneish M-Score : -1.73 (As of May. 06, 2024)

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What is HV Bancorp Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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.

Warning Sign:

Beneish M-Score -1.73 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HVBC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18 Med: -2.19 Max: -1.27
Current: -1.73

During the past 8 years, the highest Beneish M-Score of HV Bancorp was -1.27. The lowest was -3.18. And the median was -2.19.

HV Bancorp 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 HV Bancorp 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 * 1.7916

0.528 * 1

0.404 * 1.3543

0.892 * 1.0104

0.115 * 0.9692

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9664

4.679 * -0.023802

0.327 * 1.0733

-1.73

* 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.

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was $2.64 Mil.
Revenue was 6.577 + 6.325 + 7.094 + 6.576 = $26.57 Mil.
Gross Profit was 6.577 + 6.325 + 7.094 + 6.576 = $26.57 Mil.
Total Current Assets was $75.85 Mil.
Total Assets was $625.54 Mil.
Property, Plant and Equipment(Net PPE) was $10.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.46 Mil.
Selling, General, & Admin. Expense(SGA) was $14.50 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $54.66 Mil.
Net Income was 0.608 + 0.284 + 0.705 + 0.64 = $2.24 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 15.403 + 1.736 + 4.622 + -4.635 = $17.13 Mil.

Total Receivables was $1.46 Mil.
Revenue was 5.749 + 5.85 + 7.305 + 7.394 = $26.30 Mil.
Gross Profit was 5.749 + 5.85 + 7.305 + 7.394 = $26.30 Mil.
Total Current Assets was $190.60 Mil.
Total Assets was $556.53 Mil.
Property, Plant and Equipment(Net PPE) was $11.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.60 Mil.
Selling, General, & Admin. Expense(SGA) was $14.85 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $45.31 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)
	=	(2.643 / 26.572)	/	(1.46 / 26.298)
	=	0.099466	/	0.055518
	=	1.7916

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)
	=	(26.298 / 26.298)	/	(26.572 / 26.572)
	=	1	/	1
	=	1

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 - (75.852 + 10.104) / 625.535)	/	(1 - (190.604 + 11.459) / 556.526)
	=	0.862588	/	0.636921
	=	1.3543

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
	=	26.572	/	26.298
	=	1.0104

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))
	=	(1.601 / (1.601 + 11.459))	/	(1.463 / (1.463 + 10.104))
	=	0.122588	/	0.126481
	=	0.9692

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)
	=	(14.501 / 26.572)	/	(14.85 / 26.298)
	=	0.545725	/	0.564682
	=	0.9664

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)
	=	((54.658 + 0) / 625.535)	/	((45.305 + 0) / 556.526)
	=	0.087378	/	0.081407
	=	1.0733

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
	=	(2.237 - 0	-	17.126)	/	625.535
	=	-0.023802

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.

HV Bancorp has a M-score of -1.73 signals that the company is likely to be a manipulator.

HV Bancorp Beneish M-Score Related Terms

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HV Bancorp (HV Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » HV Bancorp Inc (NAS:HVBC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2005 South Easton Road, Suite 304, Doylestown, PA, USA, 18901

Website

https://www.myhvb.com

HV Bancorp Inc is the holding company for Huntingdon Valley Bank, a community bank located in suburban Philadelphia. The company through its subsidiary offers a wide variety of savings, checking and certificate of deposit accounts to its retail and business customers. It has four segments retail banking; mortgage banking; business banking and bank holding company.

Executives

Robert Joseph Marino	director	407 33RD STREET S, BRIGANTINE NJ 08203
Travis J Thompson	director, officer: Chairman, President and CEO	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
Michael L. Hammer	director	C/O HV BANCORP, INC., 2005 SOUTH EASTON ROAD, SUITE 304, DOYLESTOWN PA 18901
Hugh W Connelly	officer: EVP	3501 MASONS MILL RD, SUITE 401, HUNTINGDON VALLEY PA 19006
J Christopher Jacobsen	officer: EVP and COO	2005 SOUTH EASTON ROAD, SUITE 304, DOYLESTOWN PA 18901
Derek P Warden	officer: EVP & CCO	2005 SOUTH EASTON ROAD, SUITE 304, DOYLESTOWN PA 18901
Barton Skurbe	officer: EVP/Director of Sales	2005 SOUTH EASTON ROAD, SUITE 304, DOYLESTOWN PA 18901
O'neill Joseph C Jr	officer: EVP and CFO	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
Carl Iii Asplundh	director	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
Scott W Froggatt	director	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
John D Behm	director	2114 BLUE STEM DRIVE, NEW HOPE PA 18938-2311
Charles S Hutt	officer: EVP and CCO	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
Joseph Francis Kelly	director	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006
Asplundh Carl Hj Jr	director	3501 MASONS MILL ROAD, SUITE 401, HUNTINGDON VALLEY PA 19006