PowerFleet (JSE:PWR) Beneish M-Score : -1.71 (As of Dec. 11, 2024)

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What is PowerFleet 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 -1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

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

JSE:PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.92 Med: -2.78 Max: -0.78
Current: -1.71

During the past 13 years, the highest Beneish M-Score of PowerFleet was -0.78. The lowest was -3.92. And the median was -2.78.

PowerFleet Beneish M-Score Historical Data

The historical data trend for PowerFleet'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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PowerFleet Beneish M-Score Chart

PowerFleet Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Mar24

Beneish M-Score

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-2.92

-2.29

-2.61

-2.96

-3.30

PowerFleet Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.83	-2.96	-3.30	-1.88	-1.71

Competitive Comparison of PowerFleet's Beneish M-Score

For the Software - Infrastructure subindustry, PowerFleet'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.

PowerFleet's Beneish M-Score Distribution in the Software Industry

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

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

PowerFleet 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 PowerFleet 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 * 1.1622

0.528 * 0.9719

0.404 * 1.2217

0.892 * 1.6543

0.115 * 2.4396

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1859

4.679 * -0.057732

0.327 * 1.0731

-1.83

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R1,311 Mil.
Revenue was 1355.116 + 1390.107 + 635.925 + 645.664 = R4,027 Mil.
Gross Profit was 727.422 + 730.677 + 305.391 + 322.515 = R2,086 Mil.
Total Current Assets was R3,437 Mil.
Total Assets was R13,167 Mil.
Property, Plant and Equipment(Net PPE) was R1,079 Mil.
Depreciation, Depletion and Amortization(DDA) was R177 Mil.
Selling, General, & Admin. Expense(SGA) was R2,441 Mil.
Total Current Liabilities was R2,008 Mil.
Long-Term Debt & Capital Lease Obligation was R2,089 Mil.
Net Income was -33.219 + -411.19 + -160.489 + -70.674 = R-676 Mil.
Non Operating Income was 29.454 + -11.5 + -1.037 + 28.136 = R45 Mil.
Cash Flow from Operations was 97.528 + -140.338 + -3.92 + 86.251 = R40 Mil.

Total Receivables was R682 Mil.
Revenue was 648.532 + 600.771 + 599.624 + 585.256 = R2,434 Mil.
Gross Profit was 324.598 + 300.535 + 303.436 + 296.922 = R1,225 Mil.
Total Current Assets was R1,578 Mil.
Total Assets was R4,099 Mil.
Property, Plant and Equipment(Net PPE) was R317 Mil.
Depreciation, Depletion and Amortization(DDA) was R166 Mil.
Selling, General, & Admin. Expense(SGA) was R1,244 Mil.
Total Current Liabilities was R922 Mil.
Long-Term Debt & Capital Lease Obligation was R266 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)
	=	(1310.883 / 4026.812)	/	(681.855 / 2434.183)
	=	0.325539	/	0.280117
	=	1.1622

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)
	=	(1225.491 / 2434.183)	/	(2086.005 / 4026.812)
	=	0.503451	/	0.518029
	=	0.9719

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 - (3436.986 + 1079.089) / 13166.805)	/	(1 - (1577.567 + 316.955) / 4098.602)
	=	0.657011	/	0.537764
	=	1.2217

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
	=	4026.812	/	2434.183
	=	1.6543

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))
	=	(165.74 / (165.74 + 316.955))	/	(176.758 / (176.758 + 1079.089))
	=	0.343364	/	0.140748
	=	2.4396

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)
	=	(2441.123 / 4026.812)	/	(1244.286 / 2434.183)
	=	0.606217	/	0.511172
	=	1.1859

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)
	=	((2088.925 + 2008.13) / 13166.805)	/	((266.127 + 922.359) / 4098.602)
	=	0.311165	/	0.289974
	=	1.0731

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
	=	(-675.572 - 45.053	-	39.521)	/	13166.805
	=	-0.057732

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.

PowerFleet has a M-score of -1.83 suggests that the company is unlikely to be a manipulator.

PowerFleet Beneish M-Score Related Terms

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PowerFleet Business Description

Industry

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Traded in Other Exchanges

AIOT:USA 3LO:Germany 3LO:Germany

Address

123 Tice Boulevard, Suite 101, Woodcliff Lake, NJ, USA, 07677

Website

https://www.powerfleet.com

PowerFleet Inc is engaged in Internet-of-Things (IoT) solutions providing valuable business intelligence for managing high-value enterprise assets that improve operational efficiencies. It provide critical information that powers unified operations throughout organizations. It is solving the challenge of inefficient data collection, real-time visibility, and analysis that leads to transformative business operations. Its SaaS cloud-based applications take data from IoT devices and ecosystem of third-party and partner applications to present actionable information for customer.