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UFP Industries Beneish M-Score

: -2.50 (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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

UFPI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Med: -2.5   Max: 0.41
Current: -2.5

During the past 13 years, the highest Beneish M-Score of UFP Industries was 0.41. The lowest was -3.58. And the median was -2.50.


UFP Industries Beneish M-Score Historical Data

The historical data trend for UFP Industries'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.

UFP Industries 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 -2.38 -2.33 -2.94 -2.50 -1.92

UFP Industries Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -1.35 -1.91 -1.92 -2.00 -2.50

Competitive Comparison

For the Lumber & Wood Production subindustry, UFP Industries'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.

   

UFP Industries Beneish M-Score Distribution

For the Forest Products industry and Basic Materials sector, UFP Industries's Beneish M-Score distribution charts can be found below:

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



UFP Industries 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 UFP Industries 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 * 0.8423+0.528 * 0.867+0.404 * 0.9437+0.892 * 1.2829+0.115 * 0.9326
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0965+4.679 * -0.0174-0.327 * 0.7679
=-2.50

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $1,060 Mil.
Revenue was 2900.874 + 2489.313 + 2016.805 + 2093.784 = $9,501 Mil.
Gross Profit was 503.452 + 478.363 + 371.564 + 327.555 = $1,681 Mil.
Total Current Assets was $2,376 Mil.
Total Assets was $3,611 Mil.
Property, Plant and Equipment(Net PPE) was $733 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General, & Admin. Expense(SGA) was $782 Mil.
Total Current Liabilities was $824 Mil.
Long-Term Debt & Capital Lease Obligation was $363 Mil.
Net Income was 203.118 + 189.703 + 137.906 + 121.041 = $652 Mil.
Non Operating Income was -1.017 + -0.515 + -1.491 + -0.946 = $-4 Mil.
Cash Flow from Operations was 335.428 + -245.031 + 230.714 + 397.496 = $719 Mil.
Total Receivables was $981 Mil.
Revenue was 2700.541 + 1825.004 + 1393.708 + 1486.227 = $7,405 Mil.
Gross Profit was 421.294 + 286.554 + 187.055 + 241.074 = $1,136 Mil.
Total Current Assets was $2,123 Mil.
Total Assets was $3,228 Mil.
Property, Plant and Equipment(Net PPE) was $631 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General, & Admin. Expense(SGA) was $556 Mil.
Total Current Liabilities was $731 Mil.
Long-Term Debt & Capital Lease Obligation was $650 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)
=(1059.626 / 9500.776) / (980.571 / 7405.48)
=0.11153047 / 0.13241154
=0.8423

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)
=(1135.977 / 7405.48) / (1680.934 / 9500.776)
=0.15339681 / 0.17692597
=0.867

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 - (2376.444 + 732.989) / 3610.823) / (1 - (2122.5 + 630.784) / 3228.283)
=0.13885754 / 0.14713673
=0.9437

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
=9500.776 / 7405.48
=1.2829

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))
=(83.756 / (83.756 + 630.784)) / (105.371 / (105.371 + 732.989))
=0.11721667 / 0.12568706
=0.9326

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)
=(782.304 / 9500.776) / (556.112 / 7405.48)
=0.08234106 / 0.07509466
=1.0965

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)
=((362.779 + 823.993) / 3610.823) / ((650.42 + 731.317) / 3228.283)
=0.32867078 / 0.42800987
=0.7679

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
=(651.768 - -3.969 - 718.607) / 3610.823
=-0.0174

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.

UFP Industries has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


UFP Industries Beneish M-Score Related Terms

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UFP Industries Business Description

UFP Industries logo
Traded in Other Exchanges
Address
2801 East Beltline Avenue NE, Grand Rapids, MI, USA, 49525
UFP Industries Inc produces and sells lumber and treated wood products in three main customer categories: retail, industrial, and construction. The retail category, which generates the most revenue, sells lumber products to retailers, including big-box home improvement retailers. The industrial category sells wood pallets, boxes, packaging crates, and other containers used for industrial shipping. The construction category sells manufactured housing and building materials to the construction industry. The vast majority revenue is generated in the United States.
Executives
Mclean Benjamin J. director 2801 E BELTLINE AVE NE GRAND RAPIDS MI 49525
Worthington Scott A officer: President, UFP Industrial, LLC 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Budden Joan A director 4200 E BELTLINE GRAND RAPIDS MI 49525
Uhlig-eastin Chad C. officer: Exec Vice Pres Purchasing 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Schultz Terrence L. officer: President of idX Corporation 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Wooldridge Michael G. director 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Walker Brian C director
West Jonathan E. officer: XVP UFP Eastern Div - South 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Benton Patrick M. officer: XVP UFP Eastern Div - North 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Tuuk Mary E director 38 FOUNTAIN SQUARE PLAZA MD 10 AT 76 CINCINNATI OH 45263
Tutas David A. officer: Vice President Legal & Secty 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
Rhodes Thomas Wayne director 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525
James Donald L officer: XVP National Sales 2801 EAST BELTLINE, N.E. GRAND RAPIDS MI 49525
Engler John M director 2801 EAST BELTLINE, N.E. GRAND RAPIDS MI 49525
Mordell Michael F officer: Exec VP Purchasing 2801 EAST BELTLINE NE GRAND RAPIDS MI 49525

UFP Industries Headlines

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