FMC (MEX:FMC1) Beneish M-Score : -1.71 (As of Dec. 15, 2024)

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

MEX:FMC1' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.27 Max: -1.21
Current: -1.71

During the past 13 years, the highest Beneish M-Score of FMC was -1.21. The lowest was -3.02. And the median was -2.27.

FMC Beneish M-Score Historical Data

The historical data trend for FMC'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.

* Premium members only.

FMC Beneish M-Score Chart

FMC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.41

-2.39

-2.26

-1.68

FMC Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.29	-1.68	-2.05	-1.83	-1.71

Competitive Comparison of FMC's Beneish M-Score

For the Agricultural Inputs subindustry, FMC'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.

FMC's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, FMC's Beneish M-Score distribution charts can be found below:

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

FMC 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 FMC 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 * 1.5412

0.528 * 1.1217

0.404 * 1.1363

0.892 * 0.8267

0.115 * 1.1213

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0325

4.679 * 0.08459

0.327 * 0.9169

-1.59

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN56,915 Mil.
Revenue was 20978.046 + 19023.595 + 15235.362 + 19454.186 = MXN74,691 Mil.
Gross Profit was 7608.332 + 7293.233 + 5637.748 + 7395.68 = MXN27,935 Mil.
Total Current Assets was MXN104,664 Mil.
Total Assets was MXN240,590 Mil.
Property, Plant and Equipment(Net PPE) was MXN17,119 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN3,200 Mil.
Selling, General, & Admin. Expense(SGA) was MXN12,165 Mil.
Total Current Liabilities was MXN70,657 Mil.
Long-Term Debt & Capital Lease Obligation was MXN59,599 Mil.
Net Income was 1279.87 + 5406.262 + -44.81 + 18646.211 = MXN25,288 Mil.
Non Operating Income was -531.638 + -1714.762 + -678.787 + -2561.414 = MXN-5,487 Mil.
Cash Flow from Operations was 2780.27 + 5400.766 + -2728.424 + 4970.06 = MXN10,423 Mil.

Total Receivables was MXN44,671 Mil.
Revenue was 17103.615 + 17392.487 + 24231.007 + 31622.512 = MXN90,350 Mil.
Gross Profit was 6640.084 + 7419.88 + 10477.932 + 13366.458 = MXN37,904 Mil.
Total Current Assets was MXN92,709 Mil.
Total Assets was MXN190,848 Mil.
Property, Plant and Equipment(Net PPE) was MXN15,198 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN3,259 Mil.
Selling, General, & Admin. Expense(SGA) was MXN14,253 Mil.
Total Current Liabilities was MXN60,034 Mil.
Long-Term Debt & Capital Lease Obligation was MXN52,656 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)
	=	(56914.812 / 74691.189)	/	(44670.761 / 90349.621)
	=	0.762002	/	0.494421
	=	1.5412

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)
	=	(37904.354 / 90349.621)	/	(27934.993 / 74691.189)
	=	0.41953	/	0.374007
	=	1.1217

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 - (104663.79 + 17118.747) / 240589.869)	/	(1 - (92708.596 + 15197.988) / 190848.403)
	=	0.493817	/	0.434595
	=	1.1363

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
	=	74691.189	/	90349.621
	=	0.8267

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))
	=	(3259.07 / (3259.07 + 15197.988))	/	(3199.769 / (3199.769 + 17118.747))
	=	0.176576	/	0.15748
	=	1.1213

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)
	=	(12165.354 / 74691.189)	/	(14252.971 / 90349.621)
	=	0.162875	/	0.157754
	=	1.0325

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)
	=	((59598.6 + 70656.673) / 240589.869)	/	((52655.584 + 60034.229) / 190848.403)
	=	0.5414	/	0.590468
	=	0.9169

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
	=	(25287.533 - -5486.601	-	10422.672)	/	240589.869
	=	0.08459

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.

FMC has a M-score of -1.59 signals that the company is likely to be a manipulator.

FMC Beneish M-Score Related Terms

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FMC Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » FMC Corp (MEX:FMC1) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

FMC:USA 0IK3:UK FMQ:Germany FMQ:Germany F1MC34:Brazil

Address

2929 Walnut Street, Philadelphia, PA, USA, 19104

Website

https://www.fmc.com

FMC is a pure-play global crop protection company with a fairly balanced product portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop protection companies and focuses on the development of new products, including biologicals, through its research and development pipeline.

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