Hess (MEX:HES) Beneish M-Score : -2.78 (As of Mar. 31, 2025)

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

MEX:HES' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41 Med: -2.77 Max: -2.6
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Hess was -2.60. The lowest was -3.41. And the median was -2.77.

Hess Beneish M-Score Historical Data

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

Hess Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.20

-2.60

-2.72

-2.76

-2.78

Hess 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															-2.76	-2.44	-2.62	-2.95	-2.78

Competitive Comparison of Hess's Beneish M-Score

For the Oil & Gas E&P subindustry, Hess'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.

Hess's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hess's Beneish M-Score distribution charts can be found below:

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

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Hess 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 Hess 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 * 1.0203

0.528 * 0.9965

0.404 * 1.0595

0.892 * 1.331

0.115 * 1.0445

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7818

4.679 * -0.099362

0.327 * 0.8842

-2.53

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN30,658 Mil.
Revenue was 66613.106 + 62831.747 + 58660.97 + 54917.008 = MXN243,023 Mil.
Gross Profit was 51075.609 + 49068.228 + 46496.421 + 44743.504 = MXN191,384 Mil.
Total Current Assets was MXN66,175 Mil.
Total Assets was MXN553,740 Mil.
Property, Plant and Equipment(Net PPE) was MXN430,941 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN47,153 Mil.
Selling, General, & Admin. Expense(SGA) was MXN58,863 Mil.
Total Current Liabilities was MXN58,938 Mil.
Long-Term Debt & Capital Lease Obligation was MXN189,599 Mil.
Net Income was 11303.789 + 9805.769 + 13868.318 + 16131.56 = MXN51,109 Mil.
Non Operating Income was 646.527 + -2480.978 + 970.965 + 531.08 = MXN-332 Mil.
Cash Flow from Operations was 27362.678 + 29732.353 + 34679.955 + 14687.686 = MXN106,463 Mil.

Total Receivables was MXN22,576 Mil.
Revenue was 51109.461 + 48772.912 + 39242.387 + 43458.275 = MXN182,583 Mil.
Gross Profit was 40585.427 + 39018.329 + 29933.249 + 33742.8 = MXN143,280 Mil.
Total Current Assets was MXN58,222 Mil.
Total Assets was MXN407,501 Mil.
Property, Plant and Equipment(Net PPE) was MXN309,950 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN35,595 Mil.
Selling, General, & Admin. Expense(SGA) was MXN56,567 Mil.
Total Current Liabilities was MXN55,506 Mil.
Long-Term Debt & Capital Lease Obligation was MXN151,359 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)
	=	(30657.879 / 243022.831)	/	(22575.75 / 182583.035)
	=	0.126152	/	0.123646
	=	1.0203

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)
	=	(143279.805 / 182583.035)	/	(191383.762 / 243022.831)
	=	0.784738	/	0.787514
	=	0.9965

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 - (66175.136 + 430941.329) / 553739.69)	/	(1 - (58221.671 + 309949.768) / 407500.771)
	=	0.102256	/	0.096514
	=	1.0595

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
	=	243022.831	/	182583.035
	=	1.331

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))
	=	(35594.559 / (35594.559 + 309949.768))	/	(47152.65 / (47152.65 + 430941.329))
	=	0.10301	/	0.098626
	=	1.0445

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)
	=	(58862.854 / 243022.831)	/	(56567.312 / 182583.035)
	=	0.242211	/	0.309817
	=	0.7818

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)
	=	((189599.169 + 58938.208) / 553739.69)	/	((151359.369 + 55505.791) / 407500.771)
	=	0.448834	/	0.507644
	=	0.8842

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
	=	(51109.436 - -332.406	-	106462.672)	/	553739.69
	=	-0.099362

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.

Hess has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.

Hess Beneish M-Score Related Terms

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Hess Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

HES:USA 0J50:UK AHC:Germany AHC:Germany HES:Austria

Address

1185 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.hess.com

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2024, the company reported net proved reserves of 1.44 billion barrels of oil equivalent. Net production averaged 481 thousand barrels of oil equivalent per day in 2024, at a ratio of 79% oil and natural gas liquids and 21% natural gas.