CIMC Enric Holdings (CIMC Enric Holdings) Beneish M-Score : -3.00 (As of Apr. 25, 2024)

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What is CIMC Enric Holdings Beneish M-Score?

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 -3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CIMEF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43 Med: -2.4 Max: -1.95
Current: -3

During the past 13 years, the highest Beneish M-Score of CIMC Enric Holdings was -1.95. The lowest was -3.43. And the median was -2.40.

CIMC Enric Holdings Beneish M-Score Historical Data

The historical data trend for CIMC Enric 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.

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CIMC Enric Holdings Beneish M-Score Chart

CIMC Enric Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.48

-2.66

-1.95

-3.00

CIMC Enric Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.95	-	-3.00	-	-

Competitive Comparison of CIMC Enric Holdings's Beneish M-Score

For the Oil & Gas Equipment & Services subindustry, CIMC Enric 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.

CIMC Enric Holdings's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, CIMC Enric Holdings's Beneish M-Score distribution charts can be found below:

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

CIMC Enric 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 CIMC Enric Holdings 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 * 1.0104

0.528 * 0.8464

0.404 * 0.8595

0.892 * 0.972

0.115 * 0.9274

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1366

4.679 * -0.067791

0.327 * 1.0377

-2.99

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was $676 Mil.
Revenue was $2,812 Mil.
Gross Profit was $488 Mil.
Total Current Assets was $2,389 Mil.
Total Assets was $3,186 Mil.
Property, Plant and Equipment(Net PPE) was $603 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General, & Admin. Expense(SGA) was $312 Mil.
Total Current Liabilities was $1,511 Mil.
Long-Term Debt & Capital Lease Obligation was $231 Mil.
Net Income was $151 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $367 Mil.

Total Receivables was $689 Mil.
Revenue was $2,893 Mil.
Gross Profit was $425 Mil.
Total Current Assets was $2,133 Mil.
Total Assets was $2,987 Mil.
Property, Plant and Equipment(Net PPE) was $643 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $282 Mil.
Total Current Liabilities was $1,336 Mil.
Long-Term Debt & Capital Lease Obligation was $238 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)
	=	(676.323 / 2811.619)	/	(688.667 / 2892.745)
	=	0.240546	/	0.238067
	=	1.0104

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)
	=	(424.851 / 2892.745)	/	(487.892 / 2811.619)
	=	0.146868	/	0.173527
	=	0.8464

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 - (2388.964 + 603.289) / 3186.378)	/	(1 - (2132.604 + 642.609) / 2986.933)
	=	0.060923	/	0.070882
	=	0.8595

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
	=	2811.619	/	2892.745
	=	0.972

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))
	=	(54.474 / (54.474 + 642.609))	/	(55.516 / (55.516 + 603.289))
	=	0.078146	/	0.084268
	=	0.9274

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)
	=	(311.916 / 2811.619)	/	(282.336 / 2892.745)
	=	0.110938	/	0.097601
	=	1.1366

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)
	=	((231.455 + 1511.215) / 3186.378)	/	((237.932 + 1336.296) / 2986.933)
	=	0.546913	/	0.527038
	=	1.0377

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
	=	(151.335 - 0	-	367.344)	/	3186.378
	=	-0.067791

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.

CIMC Enric Holdings has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

CIMC Enric Holdings Beneish M-Score Related Terms

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CIMC Enric Holdings (CIMC Enric Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » CIMC Enric Holdings Ltd (OTCPK:CIMEF) » Definitions » Beneish M-Score

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Traded in Other Exchanges

03899:Hong Kong E8F:Germany

Address

CIMC R&D Center, third floor, No. 2 Gangwan Avenue, Shekou Industrial Zone, Nanshan District, Guangdong, Shenzhen, CHN

Website

https://www.enricgroup.com

CIMC Enric Holdings Ltd is engaged in the design, development, manufacturing, engineering, and sales of transportation, storage, and processing equipment. It is also involved in the provision of technical maintenance services. The company operates through three segments. The clean energy segment specializes in the manufacture and sale of a wide range of equipment for the storage, transportation, processing, and distribution of natural gas. Chemical and environmental segment specializes in the manufacture and sale of a wide range of equipment, such as tank containers, for the storage and transportation of liquefied or gasified chemicals. The liquid food segment specializes in the engineering, manufacture, and sale of stainless-steel tanks for storage and processing liquid food.