Magyar Bancorp (Magyar Bancorp) Beneish M-Score

: -2.32 (As of Today)

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Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MGYR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.44 Max: -1.88
Current: -2.32

During the past 13 years, the highest Beneish M-Score of Magyar Bancorp was -1.88. The lowest was -2.91. And the median was -2.44.

Magyar Bancorp 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 Magyar Bancorp 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 * 1.1761

0.528 * 1

0.404 * 0.9523

0.892 * 1.0189

0.115 * 0.9097

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0713

4.679 * -0.003078

0.327 * 0.8832

-2.32

* 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.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $4.59 Mil.
Revenue was 7.793 + 7.976 + 7.444 + 7.537 = $30.75 Mil.
Gross Profit was 7.793 + 7.976 + 7.444 + 7.537 = $30.75 Mil.
Total Current Assets was $67.98 Mil.
Total Assets was $916.74 Mil.
Property, Plant and Equipment(Net PPE) was $12.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.85 Mil.
Selling, General, & Admin. Expense(SGA) was $12.89 Mil.
Total Current Liabilities was $0.66 Mil.
Long-Term Debt & Capital Lease Obligation was $28.80 Mil.
Net Income was 1.652 + 2.185 + 1.918 + 1.796 = $7.55 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.224 + 3.931 + 0.343 + 2.875 = $10.37 Mil.

Total Receivables was $3.83 Mil.
Revenue was 7.488 + 8.142 + 7.638 + 6.911 = $30.18 Mil.
Gross Profit was 7.488 + 8.142 + 7.638 + 6.911 = $30.18 Mil.
Total Current Assets was $20.91 Mil.
Total Assets was $821.63 Mil.
Property, Plant and Equipment(Net PPE) was $13.68 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.84 Mil.
Selling, General, & Admin. Expense(SGA) was $11.81 Mil.
Total Current Liabilities was $0.16 Mil.
Long-Term Debt & Capital Lease Obligation was $29.73 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)
	=	(4.585 / 30.75)	/	(3.826 / 30.179)
	=	0.149106	/	0.126777
	=	1.1761

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)
	=	(30.179 / 30.179)	/	(30.75 / 30.75)
	=	1	/	1
	=	1

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 - (67.975 + 12.534) / 916.739)	/	(1 - (20.911 + 13.683) / 821.626)
	=	0.912179	/	0.957896
	=	0.9523

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
	=	30.75	/	30.179
	=	1.0189

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))
	=	(0.838 / (0.838 + 13.683))	/	(0.849 / (0.849 + 12.534))
	=	0.05771	/	0.063439
	=	0.9097

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)
	=	(12.892 / 30.75)	/	(11.81 / 30.179)
	=	0.419252	/	0.391332
	=	1.0713

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)
	=	((28.796 + 0.656) / 916.739)	/	((29.725 + 0.162) / 821.626)
	=	0.032127	/	0.036375
	=	0.8832

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
	=	(7.551 - 0	-	10.373)	/	916.739
	=	-0.003078

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.

Magyar Bancorp has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.

Magyar Bancorp Beneish M-Score Related Terms

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Magyar Bancorp (Magyar Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Magyar Bancorp Inc (NAS:MGYR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

400 Somerset Street, New Brunswick, NJ, USA, 08901

Website

https://www.magbank.com

Magyar Bancorp Inc is a mid-tier stock holding company. The Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and home equity loans; and the provision of other financial services. The business consists of getting retail deposits from the general public in the areas surrounding the main office in New Brunswick, New Jersey and branch offices located in Middlesex and Somerset Counties, New Jersey, and investing those deposits, together with funds generated from operations and wholesale funding, in residential mortgage loans, home equity loans, home equity lines of credit, commercial real estate loans, commercial business loans, Small Business Administration loans.

Executives

Michael F Lombardi	director	1862 OAK TREE RD., C/O LOMBARDI & LOMBARDI, EDISNO NJ 08818
Maureen Ruane	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08901
Susan Eisenhauer	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08901
Peter Mcintyre Brown	officer: SVP and CLO	400 SOMERSET STREET, NEW BRUNSWICK NJ 08901
Joseph A Yelencsics	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Jon Ansari	officer: Senior Vice President, C.F.O.	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
John S Fitzgerald	officer: EVP and Chief Lending Officer	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Lukacs Joseph J Jr	director, other: Chairman of the Board	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Stokes Edward C Iii	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Brian Stanley	officer: SVP and Chief Lending Officer	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Elizabeth E Hance	director, officer: President and CEO	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Salvatore J Romano	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Thomas Lankey	director, other: Vice Chairman of the Board	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Andrew G Hodulik	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903
Martin A Lukacs	director	400 SOMERSET STREET, NEW BRUNSWICK NJ 08903