PSG Financial Services Limited (NAM:KFS) Beneish M-Score : -2.34 (As of Apr. 04, 2025)

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What is PSG Financial Services Limited 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAM:KFS' s Beneish M-Score Range Over the Past 10 Years
Min: -9.52 Med: -2.48 Max: -2.13
Current: -2.34

During the past 13 years, the highest Beneish M-Score of PSG Financial Services Limited was -2.13. The lowest was -9.52. And the median was -2.48.

PSG Financial Services Limited Beneish M-Score Historical Data

The historical data trend for PSG Financial Services Limited'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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PSG Financial Services Limited Beneish M-Score Chart

PSG Financial Services Limited Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-2.43

-2.52

-2.13

-9.52

-2.34

PSG Financial Services Limited Semi-Annual Data
	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24	Aug24
Beneish M-Score	Get a 7-Day Free Trial															-	-9.52	-	-2.34	-

Competitive Comparison of PSG Financial Services Limited's Beneish M-Score

For the Asset Management subindustry, PSG Financial Services Limited'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.

PSG Financial Services Limited's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, PSG Financial Services Limited's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PSG Financial Services Limited's Beneish M-Score falls into.

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PSG Financial Services Limited 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 PSG Financial Services Limited 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 * 0.9714

0.528 * 1.052

0.404 * 1.0254

0.892 * 1.1322

0.115 * 0.9531

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9795

4.679 * 0.00321

0.327 * 1.0114

-2.34

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was R2,350 Mil.
Revenue was R7,331 Mil.
Gross Profit was R2,421 Mil.
Total Current Assets was R11,272 Mil.
Total Assets was R114,109 Mil.
Property, Plant and Equipment(Net PPE) was R238 Mil.
Depreciation, Depletion and Amortization(DDA) was R183 Mil.
Selling, General, & Admin. Expense(SGA) was R756 Mil.
Total Current Liabilities was R108,308 Mil.
Long-Term Debt & Capital Lease Obligation was R127 Mil.
Net Income was R1,034 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R668 Mil.

Total Receivables was R2,137 Mil.
Revenue was R6,476 Mil.
Gross Profit was R2,249 Mil.
Total Current Assets was R10,603 Mil.
Total Assets was R88,109 Mil.
Property, Plant and Equipment(Net PPE) was R245 Mil.
Depreciation, Depletion and Amortization(DDA) was R174 Mil.
Selling, General, & Admin. Expense(SGA) was R682 Mil.
Total Current Liabilities was R82,618 Mil.
Long-Term Debt & Capital Lease Obligation was R166 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)
	=	(2350.46 / 7331.423)	/	(2137.153 / 6475.645)
	=	0.320601	/	0.330029
	=	0.9714

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)
	=	(2249.34 / 6475.645)	/	(2420.608 / 7331.423)
	=	0.347354	/	0.330169
	=	1.052

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 - (11272.419 + 237.669) / 114109.099)	/	(1 - (10602.764 + 245.098) / 88109.268)
	=	0.899131	/	0.876882
	=	1.0254

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
	=	7331.423	/	6475.645
	=	1.1322

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))
	=	(174.004 / (174.004 + 245.098))	/	(183.453 / (183.453 + 237.669))
	=	0.415183	/	0.435629
	=	0.9531

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)
	=	(756.166 / 7331.423)	/	(681.846 / 6475.645)
	=	0.10314	/	0.105294
	=	0.9795

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)
	=	((126.978 + 108308.318) / 114109.099)	/	((165.645 + 82617.733) / 88109.268)
	=	0.950277	/	0.939554
	=	1.0114

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
	=	(1034.191 - 0	-	667.914)	/	114109.099
	=	0.00321

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.

PSG Financial Services Limited has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

PSG Financial Services Limited Beneish M-Score Related Terms

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PSG Financial Services Limited Business Description

Industry

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Traded in Other Exchanges

KST:South Africa EU4:Germany

Address

3 Howick Close, 4th Floor, The Edge, Tyger Waterfront, Tyger Valley, Bellville, WC, ZAF, 7530

Website

https://www.psg.co.za

PSG Financial Services Limited is an independent financial services group. Business is executed through three operating divisions: PSG Wealth, PSG Asset Management, and PSG Insure. PSG Wealth provides the group with nearly half of its income, with PSG Insure outweighing PSG Asset Management. Through the Wealth unit, PSG delivers a comprehensive suite of products to individuals, families, and businesses. Some of the PSG Wealth offerings include investment products, stockbroking, estate and trust services, and many other related products. PSG is structured into three segments which are PSG Wealth, generating income from managed and platform assets; PSG Asset Management, deriving income from assets under management; PSG Insure, earning income from premiums and underwriting.