GURUFOCUS.COM » STOCK LIST » USA » NYSE » Mayville Engineering Co Inc (NYSE:MEC) » Definitions » Beneish M-Score
Switch to:

Mayville Engineering Co Beneish M-Score

: -2.61 (As of Today)
View and export this data going back to 2019. Start your Free Trial

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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Med: -2.74   Max: -2.61
Current: -2.61

During the past 5 years, the highest Beneish M-Score of Mayville Engineering Co was -2.61. The lowest was -3.10. And the median was -2.74.


Mayville Engineering Co Beneish M-Score Historical Data

The historical data trend for Mayville Engineering Co'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.

Mayville Engineering Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
- - -2.90 -2.64 -2.74

Mayville Engineering Co Quarterly Data
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 -2.93 -2.91 -2.74 -2.67 -2.61

Competitive Comparison

For the Metal Fabrication subindustry, Mayville Engineering Co'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.

   

Mayville Engineering Co Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, Mayville Engineering Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Mayville Engineering Co's Beneish M-Score falls into.



Mayville Engineering Co 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 Mayville Engineering Co 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 * 1.0303+0.528 * 1.1492+0.404 * 0.7549+0.892 * 1.1844+0.115 * 1.3618
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8796+4.679 * -0.0393-0.327 * 1.5514
=-2.61

* 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 $71.2 Mil.
Revenue was 138.337 + 136.252 + 112.975 + 109.018 = $496.6 Mil.
Gross Profit was 18.258 + 14.882 + 9.409 + 10.909 = $53.5 Mil.
Total Current Assets was $155.3 Mil.
Total Assets was $446.3 Mil.
Property, Plant and Equipment(Net PPE) was $167.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.6 Mil.
Selling, General, & Admin. Expense(SGA) was $32.8 Mil.
Total Current Liabilities was $110.5 Mil.
Long-Term Debt & Capital Lease Obligation was $109.6 Mil.
Net Income was 5.929 + 3.822 + -13.563 + 0.275 = $-3.5 Mil.
Non Operating Income was 0.906 + 1.183 + 0 + 0 = $2.1 Mil.
Cash Flow from Operations was 16.109 + -0.425 + 1.664 + -5.437 = $11.9 Mil.
Total Receivables was $58.4 Mil.
Revenue was 120.213 + 112.62 + 95.344 + 91.075 = $419.3 Mil.
Gross Profit was 16.28 + 14.776 + 11.077 + 9.735 = $51.9 Mil.
Total Current Assets was $114.9 Mil.
Total Assets was $366.3 Mil.
Property, Plant and Equipment(Net PPE) was $117.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.2 Mil.
Selling, General, & Admin. Expense(SGA) was $31.5 Mil.
Total Current Liabilities was $70.8 Mil.
Long-Term Debt & Capital Lease Obligation was $45.6 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)
=(71.223 / 496.582) / (58.362 / 419.252)
=0.14342646 / 0.13920506
=1.0303

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)
=(51.868 / 419.252) / (53.458 / 496.582)
=0.12371557 / 0.10765191
=1.1492

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 - (155.328 + 167.351) / 446.284) / (1 - (114.913 + 116.973) / 366.272)
=0.27696489 / 0.36690219
=0.7549

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
=496.582 / 419.252
=1.1844

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))
=(31.239 / (31.239 + 116.973)) / (30.645 / (30.645 + 167.351))
=0.21077241 / 0.15477585
=1.3618

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)
=(32.771 / 496.582) / (31.455 / 419.252)
=0.06599313 / 0.07502648
=0.8796

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)
=((109.594 + 110.507) / 446.284) / ((45.59 + 70.847) / 366.272)
=0.49318595 / 0.31789763
=1.5514

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
=(-3.537 - 2.089 - 11.911) / 446.284
=-0.0393

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.

Mayville Engineering Co has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


Mayville Engineering Co Beneish M-Score Related Terms

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


Mayville Engineering Co Business Description

Mayville Engineering Co logo
Traded in Other Exchanges
N/A
Address
715 South Street, Mayville, WI, USA, 53050
Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.
Executives
Kent Jennifer J. director QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089-3995
Stille Randall P officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Mance Stephen P. officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Fisher Steven L director 100 N.E. ADAMS STREET PEORIA IL 61629
Carlson Allen J director 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Christen Timothy L director 715 SOUTH STREET MAYVILLE WI 53050
Rothman Jay O. director C/O QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089
Butz Todd M officer: Chief Financial Officer 715 SOUTH STREET MAYVILLE WI 53050
Kamphuis Robert D director, officer: Chairman, Pres. & CEO 715 SOUTH STREET MAYVILLE WI 53050
Raber Ryan F officer: EVP - Sales & Marketing 715 SOUTH STREET MAYVILLE WI 53050
Sanderson Clifford O officer: Vice President - HR 715 SOUTH STREET MAYVILLE WI 53050
Welak Eric J officer: EVP - Fabrication 715 SOUTH STREET MAYVILLE WI 53050
Michels Patrick D director 715 SOUTH STREET MAYVILLE WI 53050
St. Peter John A director 715 SOUTH STREET MAYVILLE WI 53050
Johnson Craig E director 715 SOUTH STREET MAYVILLE WI 53050

Mayville Engineering Co Headlines

Other Sources

Mayville Engineering Companys CEO to Retire

By tipranks.com 2022-04-01

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)