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Esi SpA (MIL:ESIGM) Beneish M-Score : 17.77 (As of Mar. 16, 2025)


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What is Esi SpA 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 17.77 higher than -1.78, which implies that the company might have manipulated its financial results.

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

MIL:ESIGM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Med: -1.11   Max: 17.77
Current: 17.77

During the past 5 years, the highest Beneish M-Score of Esi SpA was 17.77. The lowest was -3.73. And the median was -1.11.


Esi SpA Beneish M-Score Historical Data

The historical data trend for Esi SpA'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.

Esi SpA Beneish M-Score Chart

Esi SpA Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - -3.73 -1.11 17.77

Esi SpA Semi-Annual Data
Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only - -1.11 - 17.77 -

Competitive Comparison of Esi SpA's Beneish M-Score

For the Engineering & Construction subindustry, Esi SpA'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.


Esi SpA's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Esi SpA's Beneish M-Score distribution charts can be found below:

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



Esi SpA 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 Esi SpA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.0422+0.528 * 23.4622+0.404 * 1.1327+0.892 * 11.8584+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.10295-0.327 * 0.9451
=17.77

* 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 €2.79 Mil.
Revenue was €32.74 Mil.
Gross Profit was €2.00 Mil.
Total Current Assets was €20.57 Mil.
Total Assets was €22.95 Mil.
Property, Plant and Equipment(Net PPE) was €1.38 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.38 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €19.38 Mil.
Long-Term Debt & Capital Lease Obligation was €0.55 Mil.
Net Income was €-1.73 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €0.64 Mil.
Total Receivables was €5.57 Mil.
Revenue was €2.76 Mil.
Gross Profit was €3.97 Mil.
Total Current Assets was €40.54 Mil.
Total Assets was €43.59 Mil.
Property, Plant and Equipment(Net PPE) was €1.36 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €39.20 Mil.
Long-Term Debt & Capital Lease Obligation was €0.85 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)
=(2.79 / 32.741) / (5.571 / 2.761)
=0.085214 / 2.017747
=0.0422

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)
=(3.965 / 2.761) / (2.004 / 32.741)
=1.436074 / 0.061208
=23.4622

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 - (20.565 + 1.383) / 22.953) / (1 - (40.542 + 1.361) / 43.588)
=0.043785 / 0.038657
=1.1327

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
=32.741 / 2.761
=11.8584

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 / (0 + 1.361)) / (0.377 / (0.377 + 1.383))
=0 / 0.214205
=1

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)
=(0 / 32.741) / (0 / 2.761)
=0 / 0
=1

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)
=((0.548 + 19.382) / 22.953) / ((0.848 + 39.198) / 43.588)
=0.868296 / 0.918739
=0.9451

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
=(-1.728 - 0 - 0.635) / 22.953
=-0.10295

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.

Esi SpA has a M-score of 17.77 signals that the company is likely to be a manipulator.


Esi SpA Beneish M-Score Related Terms

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Esi SpA Business Description

Traded in Other Exchanges
N/A
Address
Viale Luigi Schiavonetti 290, Rome, ITA, 00173
Esi SpA operates in the renewable energy market as an EPC contractor and a System Integrator. The company covers all phases within the renewable energy value chain, from project development to engineering and construction. As an EPC contractor, it is involved in designing and constructing turnkey photovoltaic systems, civil works, excavations, roads, wind farm foundations, and high-voltage underground cable ducts. It also builds control cabins and foundations for high-voltage plants, provides maintenance of photovoltaic power plants, and performs other related activities. As a System Integrator, the company constructs mini-grid and off-grid systems for electricity supply in remote areas and designs storage systems for electrical energy production.

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