Market Cap : 42.63 B | Enterprise Value : | PE Ratio : 7.68 | PB Ratio : 0.45 |
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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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Sumitomo Mitsui Financial Group's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Sumitomo Mitsui Financial Group was 19.63. The lowest was -3.48. And the median was -2.68.
The historical data trend for Sumitomo Mitsui Financial Group'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.
For the Banks - Diversified subindustry, Sumitomo Mitsui Financial Group'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.
For the Banks industry and Financial Services sector, Sumitomo Mitsui Financial Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Sumitomo Mitsui Financial Group's Beneish M-Score falls into.
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 Sumitomo Mitsui Financial 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 * 0.8744 | + | 0.528 * 1 | + | 0.404 * 1.2421 | + | 0.892 * 1.0138 | + | 0.115 * 0.9463 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.9428 | + | 4.679 * -0.0033 | - | 0.327 * 0.9956 | |||||||
= | -2.50 |
* 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.
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) |
= | (1927.9221841599 / 29534.312609317) | / | (2174.7374173291 / 29131.087561903) | |
= | 0.06527737 | / | 0.07465349 | |
= | 0.8744 |
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) | |
= | (29131.087561903 / 29131.087561903) | / | (29534.312609317 / 29534.312609317) | |
= | 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 - (632673.09790905 + 12289.475060172) / 2173303.0493163) | / | (1 - (954789.07369058 + 13422.291444915) / 2231704.8439224) | |
= | 0.70323394 | / | 0.56615618 | |
= | 1.2421 |
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 | |
= | 29534.312609317 | / | 29131.087561903 | |
= | 1.0138 |
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)) |
= | (2089.9897055265 / (2089.9897055265 + 13422.291444915)) | / | (2040.1526766483 / (2040.1526766483 + 12289.475060172)) | |
= | 0.13473129 | / | 0.14237304 | |
= | 0.9463 |
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) |
= | (15568.852074679 / 29534.312609317) | / | (16288.662923612 / 29131.087561903) | |
= | 0.52714455 | / | 0.55915053 | |
= | 0.9428 |
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) |
= | ((245646.27829586 + 45879.214757618) / 2173303.0493163) | / | ((251223.0644044 + 49458.937562501) / 2231704.8439224) | |
= | 0.13413937 | / | 0.13473198 | |
= | 0.9956 |
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 | |
= | (5959.2384383533 - 0 | - | 13033.031589493) | / | 2173303.0493163 | |
= | -0.0033 |
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.
Sumitomo Mitsui Financial Group has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Sumitomo Mitsui Financial Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
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