BRF (MEX:BRFS) Beneish M-Score : -2.78 (As of Mar. 30, 2025)

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What is BRF 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:BRFS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06 Med: -2.68 Max: -2.3
Current: -2.78

During the past 13 years, the highest Beneish M-Score of BRF was -2.30. The lowest was -3.06. And the median was -2.68.

BRF Beneish M-Score Historical Data

The historical data trend for BRF'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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BRF Beneish M-Score Chart

BRF Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.65

-2.64

-2.58

-2.89

-2.78

BRF Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.89	-2.90	-2.55	-2.98	-2.78

Competitive Comparison of BRF's Beneish M-Score

For the Packaged Foods subindustry, BRF'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.

BRF's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, BRF's Beneish M-Score distribution charts can be found below:

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

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BRF 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 BRF 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 * 1.1512

0.528 * 0.6376

0.404 * 0.9175

0.892 * 1.1236

0.115 * 2.5261

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6814

4.679 * -0.124889

0.327 * 0.9941

-2.81

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN28,446 Mil.
Revenue was 59989.621 + 55192.83 + 50781.022 + 44583.427 = MXN210,547 Mil.
Gross Profit was 15283.697 + 14970.872 + 13367.26 + 10745.63 = MXN54,367 Mil.
Total Current Assets was MXN105,391 Mil.
Total Assets was MXN214,249 Mil.
Property, Plant and Equipment(Net PPE) was MXN51,509 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,003 Mil.
Selling, General, & Admin. Expense(SGA) was MXN20,558 Mil.
Total Current Liabilities was MXN71,173 Mil.
Long-Term Debt & Capital Lease Obligation was MXN76,874 Mil.
Net Income was 2967.177 + 3642.93 + 3359.707 + 1682.998 = MXN11,653 Mil.
Non Operating Income was -13.674 + 500.258 + 737.066 + 28.055 = MXN1,252 Mil.
Cash Flow from Operations was 9475.824 + 13569.901 + 7708.382 + 6404.342 = MXN37,158 Mil.

Total Receivables was MXN21,992 Mil.
Revenue was 49976.63 + 48694.774 + 43109.546 + 45603.98 = MXN187,385 Mil.
Gross Profit was 11060.276 + 8754.362 + 5247.813 + 5790.359 = MXN30,853 Mil.
Total Current Assets was MXN89,913 Mil.
Total Assets was MXN198,406 Mil.
Property, Plant and Equipment(Net PPE) was MXN50,609 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN11,271 Mil.
Selling, General, & Admin. Expense(SGA) was MXN26,850 Mil.
Total Current Liabilities was MXN67,173 Mil.
Long-Term Debt & Capital Lease Obligation was MXN70,745 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)
	=	(28446.276 / 210546.9)	/	(21992.422 / 187384.93)
	=	0.135107	/	0.117365
	=	1.1512

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)
	=	(30852.81 / 187384.93)	/	(54367.459 / 210546.9)
	=	0.164649	/	0.25822
	=	0.6376

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 - (105391.14 + 51509.337) / 214248.907)	/	(1 - (89912.666 + 50609.276) / 198406.192)
	=	0.267672	/	0.291746
	=	0.9175

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
	=	210546.9	/	187384.93
	=	1.1236

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))
	=	(11271.274 / (11271.274 + 50609.276))	/	(4002.774 / (4002.774 + 51509.337))
	=	0.182146	/	0.072106
	=	2.5261

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)
	=	(20558.045 / 210546.9)	/	(26849.735 / 187384.93)
	=	0.097641	/	0.143287
	=	0.6814

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)
	=	((76874.469 + 71173.202) / 214248.907)	/	((70744.732 + 67173.472) / 198406.192)
	=	0.691008	/	0.695131
	=	0.9941

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
	=	(11652.812 - 1251.705	-	37158.449)	/	214248.907
	=	-0.124889

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.

BRF has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.

BRF Beneish M-Score Related Terms

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BRF Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » BRF SA (MEX:BRFS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BRFS:USA P5Y:Germany P5Y:Germany BRFS3:Brazil BRFS:Argentina

Address

475 Jorge Tzachel Street, Fazenda District, Pinheiros, Itajai, SP, BRA, 88301-140

Website

https://www.brf-global.com

BRF SA is an international producer of fresh and frozen protein foods. It operates by raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, pet food, and others. The Company holds as its main brands Sadia, Perdigao, Qualy, Chester, Kidelli, Perdix, Banvit, Biofresh, and Gran Plus, present mainly in Brazil, Turkey, and Middle Eastern countries. The group has three reportable segments, being; Brazil, International, and Other segments.