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MasTec (NYSE:MTZ) Beneish M-Score

: -2.44 (As of Today)
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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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MTZ' s Beneish M-Score Range Over the Past 10 Years
Min: -4.56   Med: -2.5   Max: 1.4
Current: -2.44

During the past 13 years, the highest Beneish M-Score of MasTec was 1.40. The lowest was -4.56. And the median was -2.50.


MasTec (NYSE:MTZ) Beneish M-Score Historical Data

The historical data trend for MasTec'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.

MasTec Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.91 -2.66 -2.63 -3.20 -2.44

MasTec Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.44 -2.60 -2.37 -2.44

MasTec (NYSE:MTZ) Beneish M-Score Competitive Comparison

For the Engineering & Construction subindustry, MasTec'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.

   

MasTec (NYSE:MTZ) Beneish M-Score Distribution

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

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



MasTec 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 MasTec 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 * 1.1424+0.528 * 1.2471+0.404 * 0.9402+0.892 * 1.1028+0.115 * 1.2283
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.433+4.679 * -0.0478-0.327 * 1.0677
=-2.45

* 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 (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $2,675 Mil.
Revenue was 2513.484 + 2301.792 + 1954.4 + 1809.367 = $8,579 Mil.
Gross Profit was 325.649 + 273.681 + 221.084 + 250.059 = $1,070 Mil.
Total Current Assets was $3,114 Mil.
Total Assets was $7,476 Mil.
Property, Plant and Equipment(Net PPE) was $1,832 Mil.
Depreciation, Depletion and Amortization(DDA) was $451 Mil.
Selling, General, & Admin. Expense(SGA) was $472 Mil.
Total Current Liabilities was $1,986 Mil.
Long-Term Debt & Capital Lease Obligation was $2,236 Mil.
Net Income was 48.896 + 16.212 + -34.978 + 76.644 = $107 Mil.
Non Operating Income was 5.885 + 12.412 + 3.023 + 29.907 = $51 Mil.
Cash Flow from Operations was 117.13 + -129.977 + 131.518 + 293.977 = $413 Mil.
Total Receivables was $2,123 Mil.
Revenue was 2404.332 + 1962.658 + 1775.424 + 1636.795 = $7,779 Mil.
Gross Profit was 346.996 + 287.426 + 261.565 + 314.56 = $1,211 Mil.
Total Current Assets was $2,588 Mil.
Total Assets was $6,013 Mil.
Property, Plant and Equipment(Net PPE) was $1,261 Mil.
Depreciation, Depletion and Amortization(DDA) was $404 Mil.
Selling, General, & Admin. Expense(SGA) was $299 Mil.
Total Current Liabilities was $1,704 Mil.
Long-Term Debt & Capital Lease Obligation was $1,477 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)
=(2674.884 / 8579.043) / (2123.183 / 7779.209)
=0.31179282 / 0.27293045
=1.1424

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)
=(1210.547 / 7779.209) / (1070.473 / 8579.043)
=0.15561312 / 0.12477767
=1.2471

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 - (3114.275 + 1832.187) / 7475.663) / (1 - (2588.419 + 1260.981) / 6013.248)
=0.33832464 / 0.35984679
=0.9402

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
=8579.043 / 7779.209
=1.1028

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))
=(403.848 / (403.848 + 1260.981)) / (450.901 / (450.901 + 1832.187))
=0.24257626 / 0.19749611
=1.2283

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)
=(472.218 / 8579.043) / (298.814 / 7779.209)
=0.0550432 / 0.03841187
=1.433

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)
=((2236.059 + 1986.483) / 7475.663) / ((1476.717 + 1704.308) / 6013.248)
=0.56483846 / 0.5290028
=1.0677

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
=(106.774 - 51.227 - 412.648) / 7475.663
=-0.0478

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.

MasTec has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.


MasTec (NYSE:MTZ) Business Description

MasTec logo
Traded in Other Exchanges
Address
800 S. Douglas Road, 12th Floor, Coral Gables, FL, USA, 33134
MasTec Inc is a leading infrastructure construction company operating primarily throughout North America. Its principal activities include engineering, building, installation, maintenance, and upgrades of communications, energy, and utility infrastructure. The company installs wireless, wireline, and satellite communications; oil and gas pipeline infrastructure; conventional and renewable power generation; and other industrial systems. MasTec has five operating segments: Communications, Oil and Gas, Power Delivery, Clean Energy and Infrastructure, and Others. The majority of its revenue is derived from the Communications segments. The company markets services individually and in combination with other companies to provide a wide range of solutions for customers.
Executives
Parker Ava L director 1469 HARRINGTON PARK DRIVE JACKSONVILLE FL 32225
Palomarez Javier Alberto director 3405 PINNEY POINT DRIVE FLOWER MOUND TX 75022
Pita George officer: CFO 3000 NW 107TH AVENUE MIAMI FL 33172
Restrepo Daniel A director C/O MASTEC, INC. 800 S. DOUGLAS RD., 12TH FLOOR CORAL GABLES FL 33134
Harris Ray officer: President 800 DOUGLAS ROAD 12TH FLOOR - MASTEC CORAL GABLES FL 33134
Apple Robert E officer: Chief Operations Officer 800 S DOUGLAS ROAD 12TH FLOOR CORAL GABLES FL 33134
De Cardenas Alberto I officer: Executive Vice President 800 S DOUGLAS ROAD 12TH FLOOR CORAL GABLES X1 33134
Csiszar Ernst N director 2600 S RIVER ROAD DES PLAINES IL 60018
Floerke Gregory Scott officer: Chief Operations Officer C/O MARKWEST ENERGY PARTNERS, L.P. 1515 ARAPAHOE STREET, TOWER 1, SUITE 160 DENVER CO 80202
Dwyer Robert J director 880 SOUTH OCEAN BOULEVARD PALM BEACH FL 33480
Campbell C Robert officer: EVP & CFO 800 DOUGLAS ROAD 12TH FLOOR CORAL GABLES FL 33134
De Cespedes Carlos M director 3075 NW 107TH AVE MIAMI FL 33172
Jaumot Frank E director 190 SE 19TH AVENUE POMPANO BEACH FL 33060
Nearing Michael officer: General Counsel and EVP 800 DOUGLAS ROAD 12TH FL CORAL GABLES FL 33134
Hudson Sherrill W director 201 SOUTH BISCAYNE BOULEVARD 34TH FLOOR, MIAMI CENTER MIAMI FL 33131

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