RFG Holdings (JSE:RFG) Beneish M-Score : -2.55 (As of Mar. 25, 2025)

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What is RFG Holdings 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:RFG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.53 Max: -2.05
Current: -2.55

During the past 11 years, the highest Beneish M-Score of RFG Holdings was -2.05. The lowest was -2.81. And the median was -2.53.

RFG Holdings Beneish M-Score Historical Data

The historical data trend for RFG Holdings'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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RFG Holdings Beneish M-Score Chart

RFG Holdings Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Beneish M-Score

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-2.76

-2.45

-2.51

-2.81

-2.55

RFG Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.51	-	-2.81	-	-2.55

Competitive Comparison of RFG Holdings's Beneish M-Score

For the Packaged Foods subindustry, RFG Holdings'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.

RFG Holdings's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, RFG Holdings's Beneish M-Score distribution charts can be found below:

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

RFG Holdings 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 RFG Holdings 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 * 1.1364

0.528 * 0.9677

0.404 * 0.8822

0.892 * 1.0152

0.115 * 1.0055

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9483

4.679 * -0.037648

0.327 * 0.9416

-2.55

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R1,310 Mil.
Revenue was R8,006 Mil.
Gross Profit was R2,075 Mil.
Total Current Assets was R3,333 Mil.
Total Assets was R6,011 Mil.
Property, Plant and Equipment(Net PPE) was R2,073 Mil.
Depreciation, Depletion and Amortization(DDA) was R306 Mil.
Selling, General, & Admin. Expense(SGA) was R520 Mil.
Total Current Liabilities was R1,803 Mil.
Long-Term Debt & Capital Lease Obligation was R125 Mil.
Net Income was R566 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R792 Mil.

Total Receivables was R1,136 Mil.
Revenue was R7,887 Mil.
Gross Profit was R1,978 Mil.
Total Current Assets was R2,904 Mil.
Total Assets was R5,550 Mil.
Property, Plant and Equipment(Net PPE) was R2,013 Mil.
Depreciation, Depletion and Amortization(DDA) was R299 Mil.
Selling, General, & Admin. Expense(SGA) was R540 Mil.
Total Current Liabilities was R1,529 Mil.
Long-Term Debt & Capital Lease Obligation was R362 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)
	=	(1310.115 / 8006.341)	/	(1135.633 / 7886.679)
	=	0.163635	/	0.143994
	=	1.1364

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)
	=	(1978.192 / 7886.679)	/	(2075.334 / 8006.341)
	=	0.250827	/	0.259211
	=	0.9677

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 - (3332.909 + 2073.258) / 6011.307)	/	(1 - (2904.06 + 2012.565) / 5549.892)
	=	0.100667	/	0.114104
	=	0.8822

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
	=	8006.341	/	7886.679
	=	1.0152

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))
	=	(298.733 / (298.733 + 2012.565))	/	(305.81 / (305.81 + 2073.258))
	=	0.129249	/	0.128542
	=	1.0055

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)
	=	(519.734 / 8006.341)	/	(539.87 / 7886.679)
	=	0.064915	/	0.068453
	=	0.9483

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)
	=	((125.066 + 1803.456) / 6011.307)	/	((362.111 + 1528.89) / 5549.892)
	=	0.320816	/	0.340728
	=	0.9416

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
	=	(565.691 - 0	-	792.006)	/	6011.307
	=	-0.037648

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.

RFG Holdings has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

RFG Holdings Beneish M-Score Related Terms

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RFG Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » RFG Holdings Ltd (JSE:RFG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Pniel Road, Groot Drakenstein, Paarl, Cape Town, WC, ZAF, 7680

Website

https://www.rfg.com

RFG Holdings Ltd is a South Africa-based company engaged in supplying fresh, frozen, and convenient meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include Regional which is the key revenue-generating segment, and International.