Maxeon Solar Technologies (Maxeon Solar Technologies) Beneish M-Score : -3.41 (As of May. 13, 2024)

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What is Maxeon Solar Technologies 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 -3.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MAXN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.98 Med: -4.09 Max: -2.74
Current: -3.41

During the past 5 years, the highest Beneish M-Score of Maxeon Solar Technologies was -2.74. The lowest was -4.98. And the median was -4.09.

Maxeon Solar Technologies Beneish M-Score Historical Data

The historical data trend for Maxeon Solar Technologies'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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Maxeon Solar Technologies Beneish M-Score Chart

Maxeon Solar Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-2.74

-4.09

-3.55

Maxeon Solar Technologies Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-3.62	-3.55	-4.51	-3.06	-3.41

Competitive Comparison of Maxeon Solar Technologies's Beneish M-Score

For the Solar subindustry, Maxeon Solar Technologies'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.

Maxeon Solar Technologies's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Maxeon Solar Technologies's Beneish M-Score distribution charts can be found below:

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

Maxeon Solar Technologies 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 Maxeon Solar Technologies 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 * 0.6537

0.528 * -0.7529

0.404 * 0.9068

0.892 * 1.2711

0.115 * 0.9083

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.984

4.679 * 0.019309

0.327 * 0.9253

-3.41

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $91 Mil.
Revenue was 227.63 + 348.373 + 318.332 + 323.503 = $1,218 Mil.
Gross Profit was 2.728 + 56.223 + 53.625 + 20.087 = $133 Mil.
Total Current Assets was $839 Mil.
Total Assets was $1,301 Mil.
Property, Plant and Equipment(Net PPE) was $383 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General, & Admin. Expense(SGA) was $123 Mil.
Total Current Liabilities was $517 Mil.
Long-Term Debt & Capital Lease Obligation was $406 Mil.
Net Income was -108.257 + -1.509 + 20.271 + -75.701 = $-165 Mil.
Non Operating Income was -57.338 + 4.224 + 24.626 + -23.671 = $-52 Mil.
Cash Flow from Operations was -151.573 + -2.854 + -23.455 + 39.729 = $-138 Mil.

Total Receivables was $110 Mil.
Revenue was 275.449 + 238.08 + 223.081 + 221.479 = $958 Mil.
Gross Profit was -15.747 + -39.324 + -12.964 + -10.545 = $-79 Mil.
Total Current Assets was $769 Mil.
Total Assets was $1,257 Mil.
Property, Plant and Equipment(Net PPE) was $404 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $569 Mil.
Long-Term Debt & Capital Lease Obligation was $394 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)
	=	(91.332 / 1217.838)	/	(109.91 / 958.089)
	=	0.074995	/	0.114718
	=	0.6537

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)
	=	(-78.58 / 958.089)	/	(132.663 / 1217.838)
	=	-0.082017	/	0.108933
	=	-0.7529

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 - (839.362 + 382.814) / 1300.748)	/	(1 - (768.994 + 403.821) / 1256.513)
	=	0.060405	/	0.066611
	=	0.9068

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
	=	1217.838	/	958.089
	=	1.2711

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))
	=	(54.378 / (54.378 + 403.821))	/	(57.535 / (57.535 + 382.814))
	=	0.118678	/	0.130658
	=	0.9083

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)
	=	(123.423 / 1217.838)	/	(98.682 / 958.089)
	=	0.101346	/	0.102999
	=	0.984

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)
	=	((405.751 + 516.548) / 1300.748)	/	((393.76 + 569.087) / 1256.513)
	=	0.709053	/	0.766285
	=	0.9253

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
	=	(-165.196 - -52.159	-	-138.153)	/	1300.748
	=	0.019309

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.

Maxeon Solar Technologies has a M-score of -3.41 suggests that the company is unlikely to be a manipulator.

Maxeon Solar Technologies Beneish M-Score Related Terms

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Maxeon Solar Technologies (Maxeon Solar Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Maxeon Solar Technologies Ltd (NAS:MAXN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

5QJ:Germany

Address

8 Marina Boulevard No. 05-02, Marina Bay Financial Centre, Singapore, SGP, 018981

Website

https://www.maxeon.com

Maxeon Solar Technologies Ltd is engaged in the manufacturing and marketing of premium solar technology. It owns and operates solar cell and panel manufacturing facilities located in Malaysia, Mexico, and the Philippines. The company's primary products are the Maxeon line of interdigitated back contact (IBC) solar cells and panels, and the Performance line (formerly, P-Series) of shingled solar cells and panels. the Maxeon line of solar panels are the highest-efficiency solar panels on the market with an aesthetically pleasing design, and the Performance line of solar panels offers a high-value and cost-effective solution. It is targeted at residential and small-scale commercial customers across the globe. The company derives its revenue from the United States, France, Italy, and Others.