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POSCO Holdings Beneish M-Score

: -2.30 (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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PKX' s Beneish M-Score Range Over the Past 10 Years
Min: -4.67   Med: -2.49   Max: -0.64
Current: -2.3

During the past 13 years, the highest Beneish M-Score of POSCO Holdings was -0.64. The lowest was -4.67. And the median was -2.49.


POSCO Holdings Beneish M-Score Historical Data

The historical data trend for POSCO Holdings'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.

POSCO Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.70 -2.57 -2.51 -2.91 -2.49

POSCO Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 Premium Member Only -2.79 -2.73 -2.60 -2.49 -2.30

Competitive Comparison

For the Steel subindustry, POSCO Holdings'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.

   

POSCO Holdings Beneish M-Score Distribution

For the Steel industry and Basic Materials sector, POSCO Holdings's Beneish M-Score distribution charts can be found below:

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



POSCO Holdings 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 POSCO Holdings 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 * 0.8845+0.528 * 0.6025+0.404 * 1.0823+0.892 * 1.3457+0.115 * 0.9761
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8768+4.679 * 0.0122-0.327 * 0.9939
=-2.38

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $11,214 Mil.
Revenue was 17478.174264968 + 17747.578295261 + 17595.965788412 + 16294.625912374 = $69,116 Mil.
Gross Profit was 2398.9735271811 + 2631.4409541248 + 3221.7375400637 + 2514.8981304504 = $10,767 Mil.
Total Current Assets was $41,716 Mil.
Total Assets was $80,786 Mil.
Property, Plant and Equipment(Net PPE) was $24,386 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,039 Mil.
Selling, General, & Admin. Expense(SGA) was $1,881 Mil.
Total Current Liabilities was $19,312 Mil.
Long-Term Debt & Capital Lease Obligation was $11,073 Mil.
Net Income was 1401.9943139192 + 1256.8157892759 + 2071.6930745494 + 1482.5691940539 = $6,213 Mil.
Non Operating Income was 176.33747362167 + -247.26597662902 + 196.91444289358 + 203.08170096524 = $329 Mil.
Cash Flow from Operations was 7.7118975945187 + 2070.5006414885 + 1358.2794958131 + 1464.6635559915 = $4,901 Mil.
Total Receivables was $9,421 Mil.
Revenue was 14216.909415872 + 13657.215532522 + 12118.004669877 + 11368.822745079 = $51,361 Mil.
Gross Profit was 1891.4106321029 + 1295.2423304122 + 1025.7269778213 + 608.09850714933 = $4,820 Mil.
Total Current Assets was $34,897 Mil.
Total Assets was $73,278 Mil.
Property, Plant and Equipment(Net PPE) was $26,075 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,163 Mil.
Selling, General, & Admin. Expense(SGA) was $1,594 Mil.
Total Current Liabilities was $16,181 Mil.
Long-Term Debt & Capital Lease Obligation was $11,548 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)
=(11213.549611583 / 69116.344261015) / (9421.4248952647 / 51360.95236335)
=0.16224165 / 0.18343556
=0.8845

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)
=(4820.4784474857 / 51360.95236335) / (10767.05015182 / 69116.344261015)
=0.09385493 / 0.15578153
=0.6025

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 - (41716.134346416 + 24386.211176247) / 80785.823115854) / (1 - (34896.746687891 + 26075.185911701) / 73277.857912153)
=0.1817581 / 0.16793511
=1.0823

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
=69116.344261015 / 51360.95236335
=1.3457

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))
=(3162.7319831706 / (3162.7319831706 + 26075.185911701)) / (3039.2630535539 / (3039.2630535539 + 24386.211176247))
=0.10817227 / 0.11081898
=0.9761

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)
=(1881.1097893634 / 69116.344261015) / (1594.1954147945 / 51360.95236335)
=0.02721657 / 0.03103905
=0.8768

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)
=((11072.755671931 + 19311.835801045) / 80785.823115854) / ((11547.741955063 + 16181.392983862) / 73277.857912153)
=0.37611292 / 0.37841083
=0.9939

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
=(6213.0723717984 - 329.06764085146 - 4901.1555908876) / 80785.823115854
=0.0122

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.

POSCO Holdings has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


POSCO Holdings Beneish M-Score Related Terms

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POSCO Holdings Business Description

POSCO Holdings logo
Address
POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, KOR, 06194
POSCO Holdings Inc is the largest steel producer in South Korea and one of the top steel producers globally. It mainly produces flat steel and stainless steel from its two integrated steel facilities. It is exposed to the auto, shipbuilding, home appliance, engineering, and machinery industries. Posco controls around 40% of South Korean domestic market share and exports around 45%-50% of its steel products overseas, mainly to Asian countries. Through diversification, around 15%-20% of its revenue comes from non-steel and non-trading-related businesses.

POSCO Holdings Headlines

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