Renew Holdings (LSE:RNWH) Beneish M-Score : -2.49 (As of Apr. 08, 2025)

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What is Renew 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:RNWH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.55 Max: -2.23
Current: -2.49

During the past 13 years, the highest Beneish M-Score of Renew Holdings was -2.23. The lowest was -2.82. And the median was -2.55.

Renew Holdings Beneish M-Score Historical Data

The historical data trend for Renew 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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Renew Holdings Beneish M-Score Chart

Renew Holdings Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Beneish M-Score

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-2.82

-2.37

-2.74

-2.50

-2.49

Renew Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.74	-	-2.50	-	-2.49

Competitive Comparison of Renew Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Renew 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.

Renew Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Renew Holdings's Beneish M-Score distribution charts can be found below:

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

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Renew 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 Renew 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 * 0.8229

0.528 * 1.0802

0.404 * 0.9049

0.892 * 1.1896

0.115 * 1.0996

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9511

4.679 * -0.005229

0.327 * 1.0363

-2.49

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was £180 Mil.
Revenue was £1,009 Mil.
Gross Profit was £142 Mil.
Total Current Assets was £294 Mil.
Total Assets was £548 Mil.
Property, Plant and Equipment(Net PPE) was £52 Mil.
Depreciation, Depletion and Amortization(DDA) was £13 Mil.
Selling, General, & Admin. Expense(SGA) was £84 Mil.
Total Current Liabilities was £315 Mil.
Long-Term Debt & Capital Lease Obligation was £16 Mil.
Net Income was £42 Mil.
Gross Profit was £0 Mil.
Cash Flow from Operations was £44 Mil.

Total Receivables was £183 Mil.
Revenue was £848 Mil.
Gross Profit was £129 Mil.
Total Current Assets was £228 Mil.
Total Assets was £450 Mil.
Property, Plant and Equipment(Net PPE) was £39 Mil.
Depreciation, Depletion and Amortization(DDA) was £11 Mil.
Selling, General, & Admin. Expense(SGA) was £75 Mil.
Total Current Liabilities was £251 Mil.
Long-Term Debt & Capital Lease Obligation was £11 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)
	=	(179.613 / 1008.97)	/	(183.478 / 848.179)
	=	0.178016	/	0.21632
	=	0.8229

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)
	=	(128.645 / 848.179)	/	(141.664 / 1008.97)
	=	0.151672	/	0.140405
	=	1.0802

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 - (293.98 + 51.902) / 547.713)	/	(1 - (227.951 + 38.574) / 449.634)
	=	0.368498	/	0.40724
	=	0.9049

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
	=	1008.97	/	848.179
	=	1.1896

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))
	=	(10.623 / (10.623 + 38.574))	/	(12.683 / (12.683 + 51.902))
	=	0.215928	/	0.196377
	=	1.0996

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)
	=	(84.459 / 1008.97)	/	(74.649 / 848.179)
	=	0.083708	/	0.088011
	=	0.9511

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)
	=	((15.605 + 314.757) / 547.713)	/	((10.733 + 250.981) / 449.634)
	=	0.603166	/	0.58206
	=	1.0363

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
	=	(41.571 - 0	-	44.435)	/	547.713
	=	-0.005229

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.

Renew Holdings has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

Renew Holdings Beneish M-Score Related Terms

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Renew Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Renew Holdings PLC (LSE:RNWH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

3125 Century Way, Thorpe Park, Leeds, West Yorkshire, GBR, LS15 8ZB

Website

https://www.renewholdings.com

Renew Holdings PLC provides multidisciplinary engineering services to the energy, environmental, infrastructure, and specialist building sectors in the United Kingdom. Its activity is operated through the following business segments: which include Engineering Services, Specialist Building, and Central Activities. Engineering Services comprises the Group's engineering activities. Specialist Building comprises the Group's building activities. The Central activities include the sale of land, the leasing, and sub-leasing of properties. The company derives the maximum revenue from the Engineering service segment.

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