Kayne Anderson NextGen Energy and Infrastructure (Kayne Anderson NextGen Energy and Infrastructure) Beneish M-Score : -0.06 (As of Apr. 27, 2024)

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What is Kayne Anderson NextGen Energy and Infrastructure 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.

Warning Sign:

Beneish M-Score -0.06 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Kayne Anderson NextGen Energy and Infrastructure's Beneish M-Score or its related term are showing as below:

KMF' s Beneish M-Score Range Over the Past 10 Years
Min: -0.06 Med: -0.06 Max: -0.06
Current: -0.06

During the past 6 years, the highest Beneish M-Score of Kayne Anderson NextGen Energy and Infrastructure was -0.06. The lowest was -0.06. And the median was -0.06.

Kayne Anderson NextGen Energy and Infrastructure 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 Kayne Anderson NextGen Energy and Infrastructure 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 * 3.7198

0.528 * 1

0.404 * 0.9971

0.892 * 0.7501

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3514

4.679 * 0.019957

0.327 * 0.6702

-0.06

* 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 (Nov22) TTM:

Last Year (Nov21) TTM:

Total Receivables was $3.70 Mil.
Revenue was $80.97 Mil.
Gross Profit was $80.97 Mil.
Total Current Assets was $4.20 Mil.
Total Assets was $586.87 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $1.48 Mil.
Total Current Liabilities was $0.59 Mil.
Long-Term Debt & Capital Lease Obligation was $79.99 Mil.
Net Income was $78.04 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $66.33 Mil.

Total Receivables was $1.33 Mil.
Revenue was $107.95 Mil.
Gross Profit was $107.95 Mil.
Total Current Assets was $2.48 Mil.
Total Assets was $575.54 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $1.46 Mil.
Total Current Liabilities was $0.61 Mil.
Long-Term Debt & Capital Lease Obligation was $117.29 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)
	=	(3.7 / 80.973)	/	(1.326 / 107.945)
	=	0.045694	/	0.012284
	=	3.7198

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)
	=	(107.945 / 107.945)	/	(80.973 / 80.973)
	=	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 - (4.203 + 0) / 586.87)	/	(1 - (2.475 + 0) / 575.544)
	=	0.992838	/	0.9957
	=	0.9971

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
	=	80.973	/	107.945
	=	0.7501

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 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(1.48 / 80.973)	/	(1.46 / 107.945)
	=	0.018278	/	0.013525
	=	1.3514

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)
	=	((79.99 + 0.593) / 586.87)	/	((117.294 + 0.614) / 575.544)
	=	0.13731	/	0.204864
	=	0.6702

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
	=	(78.038 - 0	-	66.326)	/	586.87
	=	0.019957

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.

Kayne Anderson NextGen Energy and Infrastructure has a M-score of -0.06 signals that the company is likely to be a manipulator.

Kayne Anderson NextGen Energy and Infrastructure Beneish M-Score Related Terms

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Kayne Anderson NextGen Energy and Infrastructure (Kayne Anderson NextGen Energy and Infrastructure) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Kayne Anderson NextGen Energy and Infrastructure Inc (NYSE:KMF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

811 Main Street, 14th Floor, Houston, TX, USA, 77002

Website

https://www.kaynefunds.com

Kayne Anderson NextGen Energy and Infrastructure Inc is a non-diversified, closed-end fund. The company's investment objective is to provide a high level of total return with an emphasis on making cash distributions to the stockholders. The company seeks to achieve its investment objective by investing at least 80% of the total assets in the securities of Energy Companies and Infrastructure Companies. It invests in public MLPs, midstream C-corporations, and energy-related debt.

Executives

Metlife Investment Management, Llc	10 percent owner	ONE METLIFE WAY, WHIPPANY NJ 07981
James C Baker	officer: Exective Vice President	C/O KAYNE ANDERSON CAPITAL ADVISORS, L.P, 1800 AVENUE OF THE STARS, THIRD FLOOR, LOS ANGELES CA 90067
Carita Walker	director	2519 PANORAMA TER, LOS ANGELES CA 90039
Caroline Ann Winn	director	14914 VALLE DEL SUR COURT, SAN DIEGO CA 92127
Parker Austin Colby	officer: Chief Financial Officer	811 MAIN STREET, 14TH FLOOR, HOUSTON TX 77002
Principal Life Insurance Co	10 percent owner	711 HIGH STREET, DES MOINES IA 50392-0300
United Of Omaha Life Insurance Co	10 percent owner	MUTUAL OF OMAHA PLZ 3RD FLOOR LAW, ATTN: JAN BROCKMAN, OMAHA NE 68175-1008
Michael J Levitt	director	KAYNE ANDERSON CAPITAL ADVISORS, L.P., 1800 AVENUE OF THE STARS, 3RD FLOOR, LOS ANGELES CA 90067
Albert L Richey	director	3718 ARNOLD, HOUSTON TX 77005
Richard A Kayne	other: SEE NOTES (1) AND (2)
Anne K Costin	director	C/O KAYNE ANDERSON CAPITAL ADVISORS LP, 1800 AVENUE OF THE STARS, LOS ANGELES CA 90067
David J Shladovsky	officer: SEC. & GC OF INV. ADVISOR	C/O KAYNE ANDERSON CAPITAL ADVISORS LP, 1800 AVENUE OF THE STARS, LOS ANGELES CA 90067
Jody Meraz	officer: VICE PRESIDENT	717 TEXAS AVENUE, SUITE 3100, HOUSTON TX 77002
Mutual Of Omaha Insurance Co	10 percent owner	3300 MUTUAL OF OMAHA PLAZA, OMAHA NE 68175
John C Frey	officer: EVP, ASST. SEC. & TREAS	C/O KAYNE ANDERSON CAPITAL ADVISORS LP, 1800 AVENUE OF THE STARS, LOS ANGELES CA 90067