Nexa Resources (Nexa Resources) Beneish M-Score : -2.76 (As of Apr. 28, 2024)

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What is Nexa Resources 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NEXA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.69 Max: -2.17
Current: -2.76

During the past 10 years, the highest Beneish M-Score of Nexa Resources was -2.17. The lowest was -2.81. And the median was -2.69.

Nexa Resources Beneish M-Score Historical Data

The historical data trend for Nexa Resources'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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Nexa Resources Beneish M-Score Chart

Nexa Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.17

-2.69

-2.79

-2.54

-2.76

Nexa Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.54	-2.53	-2.40	-2.37	-2.76

Competitive Comparison of Nexa Resources's Beneish M-Score

For the Other Industrial Metals & Mining subindustry, Nexa Resources'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.

Nexa Resources's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Nexa Resources's Beneish M-Score distribution charts can be found below:

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

Nexa Resources 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 Nexa Resources 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 * 0.8189

0.528 * 1.8275

0.404 * 1.0515

0.892 * 0.8481

0.115 * 1.0013

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0346

4.679 * -0.086629

0.327 * 1.0684

-2.76

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $157 Mil.
Revenue was 629.877 + 649.334 + 626.704 + 667.318 = $2,573 Mil.
Gross Profit was 68.503 + 66.788 + 61.68 + 99.505 = $296 Mil.
Total Current Assets was $1,060 Mil.
Total Assets was $4,841 Mil.
Property, Plant and Equipment(Net PPE) was $3,029 Mil.
Depreciation, Depletion and Amortization(DDA) was $298 Mil.
Selling, General, & Admin. Expense(SGA) was $124 Mil.
Total Current Liabilities was $1,075 Mil.
Long-Term Debt & Capital Lease Obligation was $1,588 Mil.
Net Income was -93.402 + -73.738 + -102.486 + -19.728 = $-289 Mil.
Non Operating Income was -49.484 + -26.874 + -33.106 + -7.409 = $-117 Mil.
Cash Flow from Operations was 110.63 + 97.196 + 94.689 + -55.669 = $247 Mil.

Total Receivables was $226 Mil.
Revenue was 779.775 + 702.645 + 829.434 + 722.136 = $3,034 Mil.
Gross Profit was 83.55 + 84.799 + 273.105 + 197.356 = $639 Mil.
Total Current Assets was $1,220 Mil.
Total Assets was $4,892 Mil.
Property, Plant and Equipment(Net PPE) was $2,950 Mil.
Depreciation, Depletion and Amortization(DDA) was $291 Mil.
Selling, General, & Admin. Expense(SGA) was $141 Mil.
Total Current Liabilities was $899 Mil.
Long-Term Debt & Capital Lease Obligation was $1,620 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)
	=	(157.103 / 2573.233)	/	(226.195 / 3033.99)
	=	0.061053	/	0.074554
	=	0.8189

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)
	=	(638.81 / 3033.99)	/	(296.476 / 2573.233)
	=	0.210551	/	0.115215
	=	1.8275

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 - (1059.826 + 3029.393) / 4840.507)	/	(1 - (1220.146 + 2949.588) / 4891.782)
	=	0.155209	/	0.147604
	=	1.0515

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
	=	2573.233	/	3033.99
	=	0.8481

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))
	=	(290.937 / (290.937 + 2949.588))	/	(298.393 / (298.393 + 3029.393))
	=	0.089781	/	0.089667
	=	1.0013

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)
	=	(124.148 / 2573.233)	/	(141.479 / 3033.99)
	=	0.048246	/	0.046631
	=	1.0346

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)
	=	((1587.822 + 1074.882) / 4840.507)	/	((1619.779 + 898.764) / 4891.782)
	=	0.550088	/	0.514852
	=	1.0684

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
	=	(-289.354 - -116.873	-	246.846)	/	4840.507
	=	-0.086629

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.

Nexa Resources has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Nexa Resources Beneish M-Score Related Terms

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Nexa Resources (Nexa Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Nexa Resources SA (NYSE:NEXA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NE0:Germany NE0:Germany

Address

37A, Avenue J.F. Kennedy, Luxembourg, LUX, L-1855

Website

https://www.nexaresources.com

Nexa Resources SA is a low-cost integrated zinc producer. It produces copper, lead, silver, and gold as byproducts. The company operates through two segments namely Mining and Smelting. Its Mining segment consists of various operating units includes mineral exploration activities and the production of zinc concentrates, copper concentrates and lead concentrates. The Smelting segment comprises operating units which include facilities recovering and refining zinc metal out of feed materials such as zinc concentrates or secondary feed materials. It generates maximum revenue from the Smelting segment. Geographically It has a presence in Brazil, Peru, the United States of America, Switzerland, Japan, Argentina, South Korea, Colombia, Vietnam, Malaysia and other countries.