Talea Group SpA (MIL:TALEA) Beneish M-Score : -2.88 (As of Apr. 03, 2025)

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What is Talea Group 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.

Good Sign:

Beneish M-Score -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:TALEA' s Beneish M-Score Range Over the Past 10 Years
Min: -180.69 Med: -2.03 Max: 1.06
Current: -2.88

During the past 7 years, the highest Beneish M-Score of Talea Group SpA was 1.06. The lowest was -180.69. And the median was -2.03.

Talea Group SpA Beneish M-Score Historical Data

The historical data trend for Talea Group 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.

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Talea Group SpA Beneish M-Score Chart

Talea Group SpA Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.44

-180.69

1.06

-2.03

-2.88

Talea Group SpA Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial								-	-2.03	-	-2.88	-

Competitive Comparison of Talea Group SpA's Beneish M-Score

For the Pharmaceutical Retailers subindustry, Talea Group 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.

Talea Group SpA's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Talea Group SpA's Beneish M-Score distribution charts can be found below:

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

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Talea Group 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 Talea Group SpA 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 * 0.7404

0.528 * 1.2067

0.404 * 0.9609

0.892 * 1.1305

0.115 * 0.9244

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3801

4.679 * -0.056208

0.327 * 1.1149

-2.88

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €8.0 Mil.
Revenue was €131.5 Mil.
Gross Profit was €35.9 Mil.
Total Current Assets was €59.8 Mil.
Total Assets was €143.1 Mil.
Property, Plant and Equipment(Net PPE) was €20.3 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.8 Mil.
Selling, General, & Admin. Expense(SGA) was €43.8 Mil.
Total Current Liabilities was €78.9 Mil.
Long-Term Debt & Capital Lease Obligation was €23.1 Mil.
Net Income was €-7.5 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €0.5 Mil.

Total Receivables was €9.5 Mil.
Revenue was €116.3 Mil.
Gross Profit was €38.4 Mil.
Total Current Assets was €54.7 Mil.
Total Assets was €124.4 Mil.
Property, Plant and Equipment(Net PPE) was €12.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.2 Mil.
Selling, General, & Admin. Expense(SGA) was €28.1 Mil.
Total Current Liabilities was €60.9 Mil.
Long-Term Debt & Capital Lease Obligation was €18.5 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)
	=	(7.972 / 131.484)	/	(9.525 / 116.308)
	=	0.060631	/	0.081895
	=	0.7404

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)
	=	(38.358 / 116.308)	/	(35.935 / 131.484)
	=	0.329797	/	0.273303
	=	1.2067

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 - (59.796 + 20.272) / 143.147)	/	(1 - (54.678 + 12.672) / 124.395)
	=	0.440659	/	0.45858
	=	0.9609

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
	=	131.484	/	116.308
	=	1.1305

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))
	=	(2.183 / (2.183 + 12.672))	/	(3.832 / (3.832 + 20.272))
	=	0.146954	/	0.158978
	=	0.9244

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)
	=	(43.777 / 131.484)	/	(28.058 / 116.308)
	=	0.332945	/	0.241239
	=	1.3801

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)
	=	((23.053 + 78.852) / 143.147)	/	((18.517 + 60.913) / 124.395)
	=	0.711891	/	0.63853
	=	1.1149

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
	=	(-7.512 - 0	-	0.534)	/	143.147
	=	-0.056208

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.

Talea Group SpA has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.

Talea Group SpA Beneish M-Score Related Terms

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Talea Group SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Talea Group SpA (MIL:TALEA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Via Aurelia Nord 141, Viareggio, ITA, 55049

Website

https://www.farmaegroup.it

Talea Group SpA is an online retailer of heath and wellness products in Italy. The product categories of the company include over-the-counter drugs; orthopedics and aids; homeopathic products; para pharmaceuticals; medical devices; products for children; herbal; diet products and pet products among others.

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