Kuwait Foundry CoK (KUW:KFOUC) Beneish M-Score : -1.71 (As of Jun. 17, 2024)

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What is Kuwait Foundry CoK 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 Kuwait Foundry CoK's Beneish M-Score or its related term are showing as below:

KUW:KFOUC' s Beneish M-Score Range Over the Past 10 Years
Min: -7.57 Med: -2.29 Max: 0.12
Current: -1.71

During the past 13 years, the highest Beneish M-Score of Kuwait Foundry CoK was 0.12. The lowest was -7.57. And the median was -2.29.

Kuwait Foundry CoK Beneish M-Score Historical Data

The historical data trend for Kuwait Foundry CoK'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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Kuwait Foundry CoK Beneish M-Score Chart

Kuwait Foundry CoK Annual Data

Trend

Dec11

Dec12

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.29

-3.71

-2.72

-2.29

0.12

Kuwait Foundry CoK 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															-0.97	-4.16	-0.09	0.12	-1.71

Competitive Comparison of Kuwait Foundry CoK's Beneish M-Score

For the Metal Fabrication subindustry, Kuwait Foundry CoK'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.

Kuwait Foundry CoK's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kuwait Foundry CoK's Beneish M-Score distribution charts can be found below:

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

Kuwait Foundry CoK 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 Kuwait Foundry CoK 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 * 1.0175

0.528 * 1.0806

0.404 * 1.1131

0.892 * 1.0692

0.115 * 1.2377

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1196

4.679 * 0.150393

0.327 * 1.338

-1.71

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD0.16 Mil.
Revenue was 0.187 + 0.191 + 0.184 + 0.149 = KWD0.71 Mil.
Gross Profit was 0.077 + 0.079 + 0.066 + 0.058 = KWD0.28 Mil.
Total Current Assets was KWD8.98 Mil.
Total Assets was KWD24.84 Mil.
Property, Plant and Equipment(Net PPE) was KWD0.30 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.00 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.16 Mil.
Total Current Liabilities was KWD1.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 Mil.
Net Income was 6.818 + -0.732 + 0.04 + 0.055 = KWD6.18 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 2.426 + 0.159 + 0.049 + -0.188 = KWD2.45 Mil.

Total Receivables was KWD0.15 Mil.
Revenue was 0.154 + 0.195 + 0.133 + 0.183 = KWD0.67 Mil.
Gross Profit was 0.065 + 0.088 + 0.054 + 0.076 = KWD0.28 Mil.
Total Current Assets was KWD10.64 Mil.
Total Assets was KWD25.04 Mil.
Property, Plant and Equipment(Net PPE) was KWD0.30 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.01 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.14 Mil.
Total Current Liabilities was KWD0.76 Mil.
Long-Term Debt & Capital Lease Obligation was KWD0.00 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)
	=	(0.161 / 0.711)	/	(0.148 / 0.665)
	=	0.226442	/	0.222556
	=	1.0175

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)
	=	(0.283 / 0.665)	/	(0.28 / 0.711)
	=	0.425564	/	0.393812
	=	1.0806

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 - (8.976 + 0.298) / 24.835)	/	(1 - (10.644 + 0.3) / 25.037)
	=	0.626575	/	0.562887
	=	1.1131

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
	=	0.711	/	0.665
	=	1.0692

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))
	=	(0.005 / (0.005 + 0.3))	/	(0.004 / (0.004 + 0.298))
	=	0.016393	/	0.013245
	=	1.2377

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)
	=	(0.164 / 0.711)	/	(0.137 / 0.665)
	=	0.230661	/	0.206015
	=	1.1196

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)
	=	((0 + 1.002) / 24.835)	/	((0 + 0.755) / 25.037)
	=	0.040346	/	0.030155
	=	1.338

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
	=	(6.181 - 0	-	2.446)	/	24.835
	=	0.150393

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.

Kuwait Foundry CoK has a M-score of -1.71 signals that the company is likely to be a manipulator.

Kuwait Foundry CoK Beneish M-Score Related Terms

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Kuwait Foundry CoK (KUW:KFOUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kuwait Foundry Co SAK (KUW:KFOUC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

AL Rai, Street No. 10, P.O. Box 1393, Plot No. 1880, Safat, Kuwait, KWT, 13014

Website

https://www.kwfoundry.com

Kuwait Foundry Co SAK is a Kuwait based company involved in the manufacturing of cast raw iron and other materials. Its business activities include the production of sanitary tools, sewage systems, casting joints for asbestos pipes, water valves, and electric fuse boxes among other products.

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