New Peoples Bankshares (New Peoples Bankshares) Beneish M-Score : -2.45 (As of Apr. 29, 2024)

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What is New Peoples Bankshares Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NWPP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56 Med: -2.49 Max: -2.32
Current: -2.45

During the past 13 years, the highest Beneish M-Score of New Peoples Bankshares was -2.32. The lowest was -3.56. And the median was -2.49.

New Peoples Bankshares 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 New Peoples Bankshares 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 * 1.1784

0.528 * 1

0.404 * 1.0229

0.892 * 1.006

0.115 * 1.034

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0697

4.679 * -0.000264

0.327 * 1.424

-2.45

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $3.03 Mil.
Revenue was 9.515 + 9.29 + 9.277 + 9.25 = $37.33 Mil.
Gross Profit was 9.515 + 9.29 + 9.277 + 9.25 = $37.33 Mil.
Total Current Assets was $157.79 Mil.
Total Assets was $826.31 Mil.
Property, Plant and Equipment(Net PPE) was $22.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.61 Mil.
Selling, General, & Admin. Expense(SGA) was $14.82 Mil.
Total Current Liabilities was $1.45 Mil.
Long-Term Debt & Capital Lease Obligation was $30.04 Mil.
Net Income was 1.549 + 1.89 + 1.723 + 2.021 = $7.18 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.067 + 3.284 + 1.68 + 1.37 = $7.40 Mil.

Total Receivables was $2.56 Mil.
Revenue was 9.803 + 9.324 + 9.089 + 8.893 = $37.11 Mil.
Gross Profit was 9.803 + 9.324 + 9.089 + 8.893 = $37.11 Mil.
Total Current Assets was $159.36 Mil.
Total Assets was $775.36 Mil.
Property, Plant and Equipment(Net PPE) was $23.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.74 Mil.
Selling, General, & Admin. Expense(SGA) was $13.77 Mil.
Total Current Liabilities was $0.53 Mil.
Long-Term Debt & Capital Lease Obligation was $20.22 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)
	=	(3.029 / 37.332)	/	(2.555 / 37.109)
	=	0.081137	/	0.068851
	=	1.1784

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)
	=	(37.109 / 37.109)	/	(37.332 / 37.332)
	=	1	/	1
	=	1

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 - (157.793 + 22.117) / 826.313)	/	(1 - (159.357 + 23.015) / 775.358)
	=	0.782274	/	0.76479
	=	1.0229

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
	=	37.332	/	37.109
	=	1.006

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))
	=	(1.741 / (1.741 + 23.015))	/	(1.614 / (1.614 + 22.117))
	=	0.070326	/	0.068012
	=	1.034

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)
	=	(14.821 / 37.332)	/	(13.772 / 37.109)
	=	0.397005	/	0.371123
	=	1.0697

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)
	=	((30.038 + 1.447) / 826.313)	/	((20.221 + 0.526) / 775.358)
	=	0.038103	/	0.026758
	=	1.424

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
	=	(7.183 - 0	-	7.401)	/	826.313
	=	-0.000264

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.

New Peoples Bankshares has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

New Peoples Bankshares Beneish M-Score Related Terms

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New Peoples Bankshares (New Peoples Bankshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » New Peoples Bankshares Inc (OTCPK:NWPP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

67 Commerce Drive, Honaker, VA, USA, 24260

Website

https://www.newpeoples.bank

New Peoples Bankshares Inc is a bank holding company for New Peoples Bank. The Bank offers a range of banking & related financial services focused on serving individuals, small to medium-size businesses, and the professional community. Its main banking services include personal banking, business banking, and financial services. Its banking products comprise checking, savings, deposit accounts, commercial loans, consumer loans, and real estate loans.

Executives

Harold L Keene	director	P. O. BOX 1320, HONAKER VA 24260
B Scott White	director	RT 2, BOX 181-A, CASTLEWOOD VA 24224
Barton Scot Long	other: Director-Subsidiary Bank	300 FOUR WINDS DRIVE, BRISTOL VA 24201
John D Cox	director	13515 EAST CARTERS VALLEY ROAD, GATE CITY VA 24251
John J. Boczar	officer: EVP & Chief Financial Officer	599 TILLIE SCOTT CT, GREENSBORO NC 27455
Christopher Todd Asbury	officer: Senior V.P. & C.F.O.
Kiser W James	officer: EVP/Chief Banking Officer	67 COMMERCE DR, HONAKER VA 24260
Christopher G Speaks	officer: EVP/CFO	104 S. MAIN ST., GREENVILLE SC 29601
J. Robert Buchanan	director	2248 UPPER VALLEY ROAD, TAZEWELL VA 24651
Gina D Boggess	director	PO BOX 5064, PRINCETON WV 24740
Beard John W Jr	officer: EVP & Chief Credit Officer	NEW PEOPLES BANKSHARES, INC., 67 COMMERCE DRIVE, HONAKER VA 24260
Joseph Darrell Pennington	officer: SVP & Chief Financial Officer	5724 BRADINGTON CT, GLEN ALLEN VA 23059
Karen D Wimmer	officer: EVP & Chief Credit Officer	67 COMMERCE DRIVE, HONAKER VA 24260
Richard G Preservati	10 percent owner	PO BOX 1003, PRINCETON WV 24740
Gent Charles H Jr	director	P. O. BOX 330, HONAKER VA 24260