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Combined Group Contracting K C (KUW:CGC) Beneish M-Score : -2.55 (As of Jun. 21, 2024)


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What is Combined Group Contracting K C 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 Combined Group Contracting K C's Beneish M-Score or its related term are showing as below:

KUW:CGC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.61   Med: -2.35   Max: 10.6
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Combined Group Contracting K C was 10.60. The lowest was -5.61. And the median was -2.35.


Combined Group Contracting K C Beneish M-Score Historical Data

The historical data trend for Combined Group Contracting K C'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.

Combined Group Contracting K C Beneish M-Score Chart

Combined Group Contracting K C Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.66 -1.60 -3.44 -1.41 -2.35

Combined Group Contracting K C Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 -1.18 -1.28 -1.84 -2.35 -2.55

Competitive Comparison of Combined Group Contracting K C's Beneish M-Score

For the Engineering & Construction subindustry, Combined Group Contracting K C'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.


Combined Group Contracting K C's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Combined Group Contracting K C's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Combined Group Contracting K C's Beneish M-Score falls into.



Combined Group Contracting K C 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 Combined Group Contracting K C 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 * 0.8683+0.528 * 1.114+0.404 * 1.2645+0.892 * 1.0656+0.115 * 0.991
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8904+4.679 * -0.038348-0.327 * 1.0246
=-2.55

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was KWD129.8 Mil.
Revenue was 41.633 + 45.046 + 42.492 + 40.775 = KWD169.9 Mil.
Gross Profit was 5.831 + 8.032 + 3.846 + 3.628 = KWD21.3 Mil.
Total Current Assets was KWD173.2 Mil.
Total Assets was KWD228.6 Mil.
Property, Plant and Equipment(Net PPE) was KWD23.7 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD4.9 Mil.
Selling, General, & Admin. Expense(SGA) was KWD2.0 Mil.
Total Current Liabilities was KWD118.2 Mil.
Long-Term Debt & Capital Lease Obligation was KWD9.9 Mil.
Net Income was 3.222 + 3.382 + 1.66 + 1.688 = KWD10.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.0 Mil.
Cash Flow from Operations was 0.38 + 7.022 + 6.837 + 4.479 = KWD18.7 Mil.
Total Receivables was KWD140.3 Mil.
Revenue was 44.731 + 44.574 + 37.451 + 32.734 = KWD159.5 Mil.
Gross Profit was 4.642 + 9.298 + 4.788 + 3.579 = KWD22.3 Mil.
Total Current Assets was KWD180.4 Mil.
Total Assets was KWD224.0 Mil.
Property, Plant and Equipment(Net PPE) was KWD19.1 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD3.9 Mil.
Selling, General, & Admin. Expense(SGA) was KWD2.1 Mil.
Total Current Liabilities was KWD113.0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD9.5 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)
=(129.794 / 169.946) / (140.283 / 159.49)
=0.763737 / 0.879572
=0.8683

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)
=(22.307 / 159.49) / (21.337 / 169.946)
=0.139865 / 0.125552
=1.114

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 - (173.183 + 23.731) / 228.592) / (1 - (180.394 + 19.07) / 224.014)
=0.138579 / 0.109591
=1.2645

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
=169.946 / 159.49
=1.0656

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))
=(3.86 / (3.86 + 19.07)) / (4.856 / (4.856 + 23.731))
=0.168338 / 0.169867
=0.991

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)
=(1.963 / 169.946) / (2.069 / 159.49)
=0.011551 / 0.012973
=0.8904

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)
=((9.9 + 118.23) / 228.592) / ((9.533 + 113.018) / 224.014)
=0.560518 / 0.547068
=1.0246

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
=(9.952 - 0 - 18.718) / 228.592
=-0.038348

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.

Combined Group Contracting K C has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.


Combined Group Contracting K C Beneish M-Score Related Terms

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Combined Group Contracting K C (KUW:CGC) Business Description

Traded in Other Exchanges
N/A
Address
Al Ardiya Industrial, P.O. Box : 4819, Block No. 2, Plot No. 284, Kuwait City, KWT, 13049
Combined Group Contracting SA K C is a Kuwait-based company engaged in the construction industry. It undertakes general contracting, mechanical works, engineering works; packaging cement, sand, and related materials; Asphalt production, constructions works of building, ways, bridges and managing, controlling them and their related works and many other activities. The group has the operations in State of Kuwait and Gulf Countries of which it earns the majority of revenue share from Kuwait region.