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Sygnia (JSE:SYG) Beneish M-Score : -1.40 (As of Oct. 31, 2024)


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What is Sygnia 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 -1.4 higher than -1.78, which implies that the company might have manipulated its financial results.

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

JSE:SYG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Med: -1.88   Max: -0.62
Current: -1.4

During the past 10 years, the highest Beneish M-Score of Sygnia was -0.62. The lowest was -3.03. And the median was -1.88.


Sygnia Beneish M-Score Historical Data

The historical data trend for Sygnia'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.

* Premium members only.

Sygnia Beneish M-Score Chart

Sygnia Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.62 -2.50 -1.44 -3.03 -1.40

Sygnia Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -3.03 - -1.40 -

Competitive Comparison of Sygnia's Beneish M-Score

For the Financial Conglomerates subindustry, Sygnia'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.


Sygnia's Beneish M-Score Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Sygnia's Beneish M-Score distribution charts can be found below:

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



Sygnia 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 Sygnia 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 * 2.1205+0.528 * 2.3024+0.404 * 0.9935+0.892 * 1.0433+0.115 * 1.2726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.005216-0.327 * 3.0911
=-1.40

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was R457.9 Mil.
Revenue was R843.9 Mil.
Gross Profit was R-112.5 Mil.
Total Current Assets was R1,547.2 Mil.
Total Assets was R143,141.5 Mil.
Property, Plant and Equipment(Net PPE) was R47.7 Mil.
Depreciation, Depletion and Amortization(DDA) was R26.4 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R1,330.5 Mil.
Long-Term Debt & Capital Lease Obligation was R63.7 Mil.
Net Income was R299.8 Mil.
Gross Profit was R0.0 Mil.
Cash Flow from Operations was R1,046.4 Mil.
Total Receivables was R207.0 Mil.
Revenue was R808.9 Mil.
Gross Profit was R-248.3 Mil.
Total Current Assets was R569.1 Mil.
Total Assets was R127,617.8 Mil.
Property, Plant and Equipment(Net PPE) was R30.6 Mil.
Depreciation, Depletion and Amortization(DDA) was R25.4 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R353.7 Mil.
Long-Term Debt & Capital Lease Obligation was R48.4 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)
=(457.946 / 843.89) / (206.996 / 808.861)
=0.542661 / 0.25591
=2.1205

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)
=(-248.349 / 808.861) / (-112.534 / 843.89)
=-0.307035 / -0.133352
=2.3024

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 - (1547.184 + 47.734) / 143141.451) / (1 - (569.06 + 30.649) / 127617.831)
=0.988858 / 0.995301
=0.9935

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
=843.89 / 808.861
=1.0433

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))
=(25.442 / (25.442 + 30.649)) / (26.437 / (26.437 + 47.734))
=0.453584 / 0.356433
=1.2726

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)
=(0 / 843.89) / (0 / 808.861)
=0 / 0
=1

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)
=((63.707 + 1330.509) / 143141.451) / ((48.422 + 353.738) / 127617.831)
=0.00974 / 0.003151
=3.0911

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
=(299.808 - 0 - 1046.413) / 143141.451
=-0.005216

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.

Sygnia has a M-score of -1.40 signals that the company is likely to be a manipulator.


Sygnia Business Description

Traded in Other Exchanges
N/A
Address
Cardiff Street, Green Point, 7th Floor, The Foundry, Cape Town, WC, ZAF, 8001
Sygnia Ltd is a specialist financial services company. The company provides investment management and administration solutions to institutional and retail clients located predominantly in South Africa. Its main investment services include domestic and international multi-manager and index-tracking products, customized investment design and management, transition management, and investment administration services. The company operates in Cape Town, Johannesburg, Durban, London.

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