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Value Line Beneish M-Score

: -3.24 (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 -3.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:VALU' s Beneish M-Score Range Over the Past 10 Years
Min: -11.84   Med: -2.62   Max: 20.34
Current: -3.24

-11.84
20.34

During the past 13 years, the highest Beneish M-Score of Value Line was 20.34. The lowest was -11.84. And the median was -2.62.


Value Line Beneish M-Score Historical Data

The historical data trend for Value Line'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.

Value Line Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.09 -2.76 -2.56 -0.59 -3.23

Value Line Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 -3.73 -3.83 -3.29 -3.23 -3.24

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line'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.

   

Value Line Beneish M-Score Distribution

For the Capital Markets industry and Financial Services sector, Value Line's Beneish M-Score distribution charts can be found below:

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



Value Line 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 Value Line 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 * 0.9471+0.528 * 1.0932+0.404 * 0.9142+0.892 * 0.981+0.115 * 0.3718
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0078+4.679 * -0.1445-0.327 * 0.8694
=-3.24

* 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 (Jul21) TTM:Last Year (Jul20) TTM:
Accounts Receivable was $1.47 Mil.
Revenue was 10.166 + 9.724 + 10.13 + 10.21 = $40.23 Mil.
Gross Profit was 4.293 + 3.051 + 4.225 + 4.264 = $15.83 Mil.
Total Current Assets was $54.11 Mil.
Total Assets was $123.60 Mil.
Property, Plant and Equipment(Net PPE) was $8.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.31 Mil.
Selling, General, & Admin. Expense(SGA) was $8.26 Mil.
Total Current Liabilities was $27.36 Mil.
Long-Term Debt & Capital Lease Obligation was $7.11 Mil.
Net Income was 5.897 + 7.078 + 6.029 + 5.056 = $24.06 Mil.
Non Operating Income was 5.198 + 8.438 + 5.126 + 4.537 = $23.30 Mil.
Cash Flow from Operations was 7.635 + 6.055 + 2.687 + 2.242 = $18.62 Mil.
Accounts Receivable was $1.58 Mil.
Revenue was 10.328 + 9.799 + 10.803 + 10.08 = $41.01 Mil.
Gross Profit was 4.547 + 3.572 + 5.082 + 4.444 = $17.65 Mil.
Total Current Assets was $41.33 Mil.
Total Assets was $110.89 Mil.
Property, Plant and Equipment(Net PPE) was $9.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.51 Mil.
Selling, General, & Admin. Expense(SGA) was $8.35 Mil.
Total Current Liabilities was $26.21 Mil.
Long-Term Debt & Capital Lease Obligation was $9.37 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(1.467 / 40.23) / (1.579 / 41.01)
=0.03646532 / 0.0385028
=0.9471

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)
=(17.645 / 41.01) / (15.833 / 40.23)
=0.43026091 / 0.39356202
=1.0932

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 - (54.108 + 7.999) / 123.603) / (1 - (41.334 + 9.206) / 110.891)
=0.49752838 / 0.54423713
=0.9142

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
=40.23 / 41.01
=0.981

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))
=(0.509 / (0.509 + 9.206)) / (1.312 / (1.312 + 7.999))
=0.05239321 / 0.1409086
=0.3718

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)
=(8.259 / 40.23) / (8.354 / 41.01)
=0.20529456 / 0.20370641
=1.0078

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)
=((7.114 + 27.364) / 123.603) / ((9.367 + 26.213) / 110.891)
=0.27894145 / 0.32085561
=0.8694

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
=(24.06 - 23.299 - 18.619) / 123.603
=-0.1445

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.

Value Line has a M-score of -3.24 suggests that the company is unlikely to be a manipulator.


Value Line Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Value Line's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Value Line Business Description

Value Line logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Fiore Alfred R director 1 ANGORA ROAD WESTPORT CT 06880
Brecher Howard A director, officer: Chairman and CEO VALUE LINE 220 E 42ND ST SUITE 600 NEW YORK NY 10017
Anastasio Stephen director, officer: Vice President and Treasurer 220 E 42ND STREET NEW YORK NY 10017
Muenzer Glenn J. director 357 HARVARD COURT EAST MEADOW NY 11554
Reed William Edward director 12 KNORR STREET NORWALK CT 06854
Bernstein Mary director 220 E 42ND STREET NEW YORK NY 10017
Davis Stephen P director 57 EAST 95TH STREET NEW YORK NY 10128
Sarkany Thomas director, officer: Secretary 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Perkins, Robert M. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Legon, Ruth O. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Appel Mitchell Eric officer: Chief Financial Officer VALUE LINE INC 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Eakman Janet director 220 E 42ND STREET NEW YORK NY 10017
Shanahan Edward J director 220 EAST 42 STREET NEW YORK NY 10017
Asher Marianne B director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ASHER MARIANNE B a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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