PT Hero Supermarket Tbk (ISX:HERO) Beneish M-Score : -1.37 (As of Sep. 24, 2024)

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What is PT Hero Supermarket Tbk 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.

Warning Sign:

Beneish M-Score -1.37 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for PT Hero Supermarket Tbk's Beneish M-Score or its related term are showing as below:

ISX:HERO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.99 Med: -2.75 Max: 7.67
Current: -1.37

During the past 13 years, the highest Beneish M-Score of PT Hero Supermarket Tbk was 7.67. The lowest was -3.99. And the median was -2.75.

PT Hero Supermarket Tbk Beneish M-Score Historical Data

The historical data trend for PT Hero Supermarket Tbk'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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PT Hero Supermarket Tbk Beneish M-Score Chart

PT Hero Supermarket Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.41

-3.84

-3.49

-0.98

-1.81

PT Hero Supermarket Tbk Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-1.91	-2.06	-1.81	-2.00	-1.37

Competitive Comparison of PT Hero Supermarket Tbk's Beneish M-Score

For the Department Stores subindustry, PT Hero Supermarket Tbk'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.

PT Hero Supermarket Tbk's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PT Hero Supermarket Tbk's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PT Hero Supermarket Tbk's Beneish M-Score falls into.

PT Hero Supermarket Tbk 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 PT Hero Supermarket Tbk 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 * 1.4854

0.528 * 1.0891

0.404 * 3.5894

0.892 * 1.1632

0.115 * 0.579

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9075

4.679 * -0.132684

0.327 * 0.7703

-1.37

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was Rp119,295 Mil.
Revenue was 996963 + 1254964 + 1294162 + 1640008 = Rp5,186,097 Mil.
Gross Profit was 418785 + 511777 + 497756 + 607644 = Rp2,035,962 Mil.
Total Current Assets was Rp1,298,032 Mil.
Total Assets was Rp4,806,949 Mil.
Property, Plant and Equipment(Net PPE) was Rp1,960,381 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp345,934 Mil.
Selling, General, & Admin. Expense(SGA) was Rp326,698 Mil.
Total Current Liabilities was Rp2,844,375 Mil.
Long-Term Debt & Capital Lease Obligation was Rp211,090 Mil.
Net Income was 163289 + -1125 + -151566 + -112524 = Rp-101,926 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = Rp0 Mil.
Cash Flow from Operations was 252788 + -181690 + 294348 + 170433 = Rp535,879 Mil.

Total Receivables was Rp69,045 Mil.
Revenue was 997077 + 1166270 + 1203869 + 1091222 = Rp4,458,438 Mil.
Gross Profit was 434990 + 477812 + 517812 + 475672 = Rp1,906,286 Mil.
Total Current Assets was Rp2,639,908 Mil.
Total Assets was Rp6,669,405 Mil.
Property, Plant and Equipment(Net PPE) was Rp3,430,928 Mil.
Depreciation, Depletion and Amortization(DDA) was Rp326,275 Mil.
Selling, General, & Admin. Expense(SGA) was Rp309,499 Mil.
Total Current Liabilities was Rp3,452,519 Mil.
Long-Term Debt & Capital Lease Obligation was Rp2,051,270 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)
	=	(119295 / 5186097)	/	(69045 / 4458438)
	=	0.023003	/	0.015486
	=	1.4854

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)
	=	(1906286 / 4458438)	/	(2035962 / 5186097)
	=	0.427568	/	0.392581
	=	1.0891

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 - (1298032 + 1960381) / 4806949)	/	(1 - (2639908 + 3430928) / 6669405)
	=	0.322145	/	0.089748
	=	3.5894

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
	=	5186097	/	4458438
	=	1.1632

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))
	=	(326275 / (326275 + 3430928))	/	(345934 / (345934 + 1960381))
	=	0.08684	/	0.149994
	=	0.579

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)
	=	(326698 / 5186097)	/	(309499 / 4458438)
	=	0.062995	/	0.069419
	=	0.9075

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)
	=	((211090 + 2844375) / 4806949)	/	((2051270 + 3452519) / 6669405)
	=	0.635635	/	0.825229
	=	0.7703

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
	=	(-101926 - 0	-	535879)	/	4806949
	=	-0.132684

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.

PT Hero Supermarket Tbk has a M-score of -1.37 signals that the company is likely to be a manipulator.

PT Hero Supermarket Tbk Beneish M-Score Related Terms

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PT Hero Supermarket Tbk Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PT Hero Supermarket Tbk (ISX:HERO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Graha Hero, CBD Bintaro Sektor 7, Blok B7/A7, Pondok Jaya, Pondok Aren, Tangerang Selatan, Tangerang, IDN, 15224

Website

https://www.hero.co.id

PT Hero Supermarket Tbk is engaged in the retail industry. The company's operating segment includes food and non-food. It generates maximum revenue from the food segment. The Food segment consists of supermarkets and hypermarket stores. Its non-food segment relates to specialty retail operations such as pharmacies, drug stores, health and beauty stores, and home furnishing.