Knights Group Holdings (LSE:KGH) Beneish M-Score : -2.71 (As of Apr. 06, 2025)

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What is Knights Group 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:KGH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75 Med: -2.56 Max: -1.83
Current: -2.71

During the past 9 years, the highest Beneish M-Score of Knights Group Holdings was -1.83. The lowest was -2.75. And the median was -2.56.

Knights Group Holdings Beneish M-Score Historical Data

The historical data trend for Knights Group 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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Knights Group Holdings Beneish M-Score Chart

Knights Group Holdings Annual Data

Trend

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

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-1.83

-2.42

-2.75

-2.65

-2.71

Knights Group Holdings Semi-Annual Data
	Apr16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24	Oct24
Beneish M-Score	Get a 7-Day Free Trial												-	-2.65	-	-2.71	-

Competitive Comparison of Knights Group Holdings's Beneish M-Score

For the Specialty Business Services subindustry, Knights Group 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.

Knights Group Holdings's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Knights Group Holdings's Beneish M-Score distribution charts can be found below:

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

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Knights Group 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 Knights Group 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 * 0.9973

0.528 * 1

0.404 * 0.9815

0.892 * 1.0554

0.115 * 0.9894

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.05926

0.327 * 0.9876

-2.71

This Year (Apr24) TTM:

Last Year (Apr23) TTM:

Total Receivables was £72.9 Mil.
Revenue was £150.0 Mil.
Gross Profit was £150.0 Mil.
Total Current Assets was £79.1 Mil.
Total Assets was £219.1 Mil.
Property, Plant and Equipment(Net PPE) was £48.9 Mil.
Depreciation, Depletion and Amortization(DDA) was £11.9 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £30.7 Mil.
Long-Term Debt & Capital Lease Obligation was £75.5 Mil.
Net Income was £9.8 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £22.8 Mil.

Total Receivables was £69.3 Mil.
Revenue was £142.1 Mil.
Gross Profit was £142.1 Mil.
Total Current Assets was £73.8 Mil.
Total Assets was £211.7 Mil.
Property, Plant and Equipment(Net PPE) was £48.2 Mil.
Depreciation, Depletion and Amortization(DDA) was £11.6 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £32.3 Mil.
Long-Term Debt & Capital Lease Obligation was £71.7 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)
	=	(72.944 / 149.957)	/	(69.302 / 142.08)
	=	0.486433	/	0.487767
	=	0.9973

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)
	=	(142.08 / 142.08)	/	(149.957 / 149.957)
	=	1	/	1
	=	1

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 - (79.065 + 48.93) / 219.101)	/	(1 - (73.814 + 48.204) / 211.71)
	=	0.415817	/	0.423655
	=	0.9815

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
	=	149.957	/	142.08
	=	1.0554

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))
	=	(11.614 / (11.614 + 48.204))	/	(11.946 / (11.946 + 48.93))
	=	0.194156	/	0.196235
	=	0.9894

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 / 149.957)	/	(0 / 142.08)
	=	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)
	=	((75.538 + 30.697) / 219.101)	/	((71.661 + 32.282) / 211.71)
	=	0.484868	/	0.490969
	=	0.9876

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
	=	(9.847 - 0	-	22.831)	/	219.101
	=	-0.05926

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.

Knights Group Holdings has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.

Knights Group Holdings Beneish M-Score Related Terms

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Knights Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Knights Group Holdings PLC (LSE:KGH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

77Q:Germany

Address

The Brampton, Newcastle-Under-Lyme, Staffordshire, GBR, ST5 0QW

Website

https://www.knightsplc.com

Knights Group Holdings PLC is engaged in providing regional legal and professional service businesses. The group provides corporate and commercial legal services at scale and across a broad sector basis, like the larger national law firms. The company generates fee income across various individual departments, which includes niche areas to service the specific needs of its clients. Its service lines include real estate, Dispute Resolution, Corporate, Employment, CL Medilaw, and private client.

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