Hub Power Co (KAR:HUBC) Beneish M-Score : -3.17 (As of Apr. 06, 2025)

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What is Hub Power Co 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 -3.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KAR:HUBC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.23 Med: -2.15 Max: -1.54
Current: -3.17

During the past 13 years, the highest Beneish M-Score of Hub Power Co was -1.54. The lowest was -4.23. And the median was -2.15.

Hub Power Co Beneish M-Score Historical Data

The historical data trend for Hub Power Co'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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Hub Power Co Beneish M-Score Chart

Hub Power Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-1.93

-1.90

-1.83

-2.27

-2.22

Hub Power Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.01	-2.13	-2.22	-2.40	-3.17

Competitive Comparison of Hub Power Co's Beneish M-Score

For the Utilities - Independent Power Producers subindustry, Hub Power Co'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.

Hub Power Co's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Hub Power Co's Beneish M-Score distribution charts can be found below:

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

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Hub Power Co 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 Hub Power Co 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 * 0.3982

0.528 * 0.9974

0.404 * 1.3626

0.892 * 0.9286

0.115 * 1.2805

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7578

4.679 * -0.046235

0.327 * 0.7028

-3.17

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ₨44,335 Mil.
Revenue was 15498.328 + 32037.743 + 35091.264 + 31791.032 = ₨114,418 Mil.
Gross Profit was 6379.573 + 18049.062 + 18467.935 + 16390.432 = ₨59,287 Mil.
Total Current Assets was ₨106,281 Mil.
Total Assets was ₨407,630 Mil.
Property, Plant and Equipment(Net PPE) was ₨127,564 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨5,940 Mil.
Selling, General, & Admin. Expense(SGA) was ₨1,582 Mil.
Total Current Liabilities was ₨77,680 Mil.
Long-Term Debt & Capital Lease Obligation was ₨74,394 Mil.
Net Income was 4209.341 + 19125.314 + 20471.57 + 17186.378 = ₨60,993 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 47397.72 + 8722.71 + 19922.94 + 3795.867 = ₨79,839 Mil.

Total Receivables was ₨119,912 Mil.
Revenue was 29913.346 + 33729.891 + 32345.073 + 27230.964 = ₨123,219 Mil.
Gross Profit was 16751.43 + 16736.159 + 17060.8 + 13132.632 = ₨63,681 Mil.
Total Current Assets was ₨163,106 Mil.
Total Assets was ₨431,712 Mil.
Property, Plant and Equipment(Net PPE) was ₨133,528 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨8,067 Mil.
Selling, General, & Admin. Expense(SGA) was ₨970 Mil.
Total Current Liabilities was ₨130,774 Mil.
Long-Term Debt & Capital Lease Obligation was ₨98,390 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)
	=	(44334.792 / 114418.367)	/	(119911.817 / 123219.274)
	=	0.38748	/	0.973158
	=	0.3982

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)
	=	(63681.021 / 123219.274)	/	(59287.002 / 114418.367)
	=	0.516811	/	0.51816
	=	0.9974

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 - (106280.669 + 127564.488) / 407630.243)	/	(1 - (163106.215 + 133528.126) / 431712.243)
	=	0.42633	/	0.312889
	=	1.3626

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
	=	114418.367	/	123219.274
	=	0.9286

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))
	=	(8067.316 / (8067.316 + 133528.126))	/	(5940.242 / (5940.242 + 127564.488))
	=	0.056974	/	0.044495
	=	1.2805

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)
	=	(1582.397 / 114418.367)	/	(969.532 / 123219.274)
	=	0.01383	/	0.007868
	=	1.7578

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)
	=	((74393.987 + 77679.908) / 407630.243)	/	((98390.043 + 130774.01) / 431712.243)
	=	0.373068	/	0.530826
	=	0.7028

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
	=	(60992.603 - 0	-	79839.237)	/	407630.243
	=	-0.046235

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.

Hub Power Co has a M-score of -3.17 suggests that the company is unlikely to be a manipulator.

Hub Power Co Beneish M-Score Related Terms

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Hub Power Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Hub Power Co Ltd (KAR:HUBC) » Definitions » Beneish M-Score

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Address

G-3, Block-9, Main Clifton Road, P.O. Box No. 13841, 9th Floor, Ocean Tower, Karachi, PAK, 75600

Website

https://www.hubpower.com

Hub Power Co Ltd is a part of the energy sector in Pakistan. It is the independent power producers that supplies reliable and uninterrupted electricity to the National grid. The company has four segments, which are power generation business, which includes the Hub plant, Narowal plant, Laraib plant & Thar plant, operations and maintenance business and investments in CPHGC, TEL, TNPTL, SECMC, Prime and CPHO. The company derives the majority of its revenue through the Hub, and thar plant segment, which deals with the generation of power.