Samsung C&T (LSE:SAMC) Beneish M-Score : -2.55 (As of Apr. 25, 2024)

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What is Samsung C&T 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 Samsung C&T's Beneish M-Score or its related term are showing as below:

LSE:SAMC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.64 Med: -2.49 Max: 1.4
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Samsung C&T was 1.40. The lowest was -2.64. And the median was -2.49.

Samsung C&T Beneish M-Score Historical Data

The historical data trend for Samsung C&T'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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Samsung C&T Beneish M-Score Chart

Samsung C&T Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.49

-2.42

-2.10

-2.64

-2.55

Samsung C&T Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.64	-2.82	-2.58	-2.27	-2.55

Competitive Comparison of Samsung C&T's Beneish M-Score

For the Engineering & Construction subindustry, Samsung C&T'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.

Samsung C&T's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Samsung C&T's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Samsung C&T's Beneish M-Score falls into.

Samsung C&T 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 Samsung C&T 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 * 0.9872

0.528 * 0.8887

0.404 * 1.1125

0.892 * 0.9596

0.115 * 0.8511

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0428

4.679 * -0.008851

0.327 * 0.7925

-2.54

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $4,914 Mil.
Revenue was 7742.862 + 8222.819 + 8160.451 + 7839.558 = $31,966 Mil.
Gross Profit was 1269.994 + 1284.015 + 1301.592 + 1155.194 = $5,011 Mil.
Total Current Assets was $14,549 Mil.
Total Assets was $50,696 Mil.
Property, Plant and Equipment(Net PPE) was $6,013 Mil.
Depreciation, Depletion and Amortization(DDA) was $626 Mil.
Selling, General, & Admin. Expense(SGA) was $1,128 Mil.
Total Current Liabilities was $11,315 Mil.
Long-Term Debt & Capital Lease Obligation was $1,588 Mil.
Net Income was 297.27 + 427.273 + 449.552 + 518.576 = $1,693 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1038.319 + 221.838 + 293.205 + 587.994 = $2,141 Mil.

Total Receivables was $5,187 Mil.
Revenue was 8231.327 + 8060.607 + 8469.206 + 8551.228 = $33,312 Mil.
Gross Profit was 1271.983 + 1248.944 + 1088.613 + 1031.393 = $4,641 Mil.
Total Current Assets was $15,703 Mil.
Total Assets was $45,596 Mil.
Property, Plant and Equipment(Net PPE) was $5,532 Mil.
Depreciation, Depletion and Amortization(DDA) was $483 Mil.
Selling, General, & Admin. Expense(SGA) was $1,127 Mil.
Total Current Liabilities was $12,689 Mil.
Long-Term Debt & Capital Lease Obligation was $1,954 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)
	=	(4913.628 / 31965.69)	/	(5187.074 / 33312.368)
	=	0.153716	/	0.15571
	=	0.9872

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)
	=	(4640.933 / 33312.368)	/	(5010.795 / 31965.69)
	=	0.139316	/	0.156755
	=	0.8887

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 - (14548.943 + 6012.58) / 50695.575)	/	(1 - (15703.018 + 5531.764) / 45596.153)
	=	0.594412	/	0.534286
	=	1.1125

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
	=	31965.69	/	33312.368
	=	0.9596

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))
	=	(482.846 / (482.846 + 5531.764))	/	(626.193 / (626.193 + 6012.58))
	=	0.080279	/	0.094324
	=	0.8511

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)
	=	(1128.055 / 31965.69)	/	(1127.287 / 33312.368)
	=	0.03529	/	0.03384
	=	1.0428

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)
	=	((1587.585 + 11314.883) / 50695.575)	/	((1953.682 + 12688.523) / 45596.153)
	=	0.254509	/	0.321128
	=	0.7925

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
	=	(1692.671 - 0	-	2141.356)	/	50695.575
	=	-0.008851

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.

Samsung C&T has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Samsung C&T Beneish M-Score Related Terms

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Samsung C&T (LSE:SAMC) Business Description

Industry

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02826K:Korea 028260:Korea

Address

14, Seocho-daero 74-gil, Seocho-gu, Seoul, KOR, 137-956

Website

http://www.samsungcnt.co.kr

Samsung C&T Corp is a holding company with dozens of subsidiaries including construction and building services, trading, fashion, tourism, and food and beverage. The company organizes itself into six main operating segments based on function. The Trading segment, which generates the most revenue of any segment, trades industrial commodities including chemicals, steel, textiles, coal and copper. The Construction 1 segment provides building and civil engineering services. The Construction 2 segment provides residential construction and landscaping services. The Resort segment owns and operates amusement parks and golf courses. The fashion segment sells clothing under the KUHO, LEBEIGE and 8seconds brands. The majority of revenue comes from South Korea.

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