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Montrose Environmental Group Beneish M-Score

: -2.52 (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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

NYSE:MEG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.52   Med: -2.52   Max: -2.52
Current: -2.52

During the past 3 years, the highest Beneish M-Score of Montrose Environmental Group was -2.52. The lowest was -2.52. And the median was -2.52.


Montrose Environmental Group Beneish M-Score Historical Data

* 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.

Montrose Environmental Group Annual Data
Dec18 Dec19 Dec20
Beneish M-Score - - -2.52

Montrose Environmental Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -2.52

Competitive Comparison
* 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.


Montrose Environmental Group Beneish M-Score Distribution

* The bar in red indicates where Montrose Environmental Group's Beneish M-Score falls into.



Montrose Environmental Group 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 Montrose Environmental Group 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 * 0.8393+0.528 * 0.8698+0.404 * 1.032+0.892 * 1.4036+0.115 * 0.9732
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.313+4.679 * -0.0507-0.327 * 0.7109
=-2.52

* 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 (Dec20) TTM:Last Year (Dec19) TTM:
Accounts Receivable was $54.1 Mil.
Revenue was 108.741 + 84.705 + 73.766 + 61.031 = $328.2 Mil.
Gross Profit was 35.364 + 32.877 + 27.877 + 16.633 = $112.8 Mil.
Total Current Assets was $134.3 Mil.
Total Assets was $602.7 Mil.
Property, Plant and Equipment(Net PPE) was $34.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.3 Mil.
Selling, General, & Admin. Expense(SGA) was $89.4 Mil.
Total Current Liabilities was $111.5 Mil.
Long-Term Debt & Capital Lease Obligation was $170.3 Mil.
Net Income was 0.812 + -30.737 + 13.224 + -41.248 = $-57.9 Mil.
Non Operating Income was 1.711 + -23.041 + 21.933 + -29.83 = $-29.2 Mil.
Cash Flow from Operations was 5.727 + -2.293 + 7.394 + -8.978 = $1.9 Mil.
Accounts Receivable was $45.9 Mil.
Revenue was 67.876 + 57.623 + 57.401 + 50.954 = $233.9 Mil.
Gross Profit was 20.141 + 17.819 + 18.052 + 13.859 = $69.9 Mil.
Total Current Assets was $73.2 Mil.
Total Assets was $331.8 Mil.
Property, Plant and Equipment(Net PPE) was $27.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.7 Mil.
Selling, General, & Admin. Expense(SGA) was $48.5 Mil.
Total Current Liabilities was $73.3 Mil.
Long-Term Debt & Capital Lease Obligation was $145.0 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)
=(54.102 / 328.243) / (45.927 / 233.854)
=0.16482301 / 0.19639177
=0.8393

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)
=(69.871 / 233.854) / (112.751 / 328.243)
=0.29878044 / 0.34349857
=0.8698

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 - (134.268 + 34.399) / 602.726) / (1 - (73.239 + 27.036) / 331.838)
=0.72015974 / 0.69781942
=1.032

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
=328.243 / 233.854
=1.4036

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))
=(27.705 / (27.705 + 27.036)) / (37.274 / (37.274 + 34.399))
=0.50611059 / 0.52005637
=0.9732

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)
=(89.41 / 328.243) / (48.514 / 233.854)
=0.27238966 / 0.20745422
=1.313

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)
=((170.321 + 111.543) / 602.726) / ((145.046 + 73.252) / 331.838)
=0.46764865 / 0.65784509
=0.7109

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
=(-57.949 - -29.227 - 1.85) / 602.726
=-0.0507

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.

Montrose Environmental Group has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.


Montrose Environmental Group Beneish M-Score Headlines

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