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GEA Group AG Beneish M-Score

: -3.02 (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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OTCPK:GEAGF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Med: -2.53   Max: -2.09
Current: -3.02

-3.52
-2.09

During the past 13 years, the highest Beneish M-Score of GEA Group AG was -2.09. The lowest was -3.52. And the median was -2.53.


GEA Group AG Beneish M-Score Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.09 -2.48 -2.92 -3.15 -3.18

GEA Group AG Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -3.39 -3.52 -3.18 -3.17 -3.02

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

   

GEA Group AG Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Beneish M-Score distribution charts can be found below:

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



GEA Group AG 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 GEA Group AG 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 * 0.9114+0.528 * 0.9324+0.404 * 0.9842+0.892 * 1.0258+0.115 * 1.4673
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0034+4.679 * -0.0897-0.327 * 1.0467
=-2.96

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $815 Mil.
Revenue was 1392.2493975904 + 1268.344047619 + 1497.3381995134 + 1349.6713780919 = $5,508 Mil.
Gross Profit was 469.04337349398 + 421.28928571429 + 445.2104622871 + 424.24146054181 = $1,760 Mil.
Total Current Assets was $3,310 Mil.
Total Assets was $6,749 Mil.
Property, Plant and Equipment(Net PPE) was $744 Mil.
Depreciation, Depletion and Amortization(DDA) was $288 Mil.
Selling, General, & Admin. Expense(SGA) was $1,281 Mil.
Total Current Liabilities was $2,480 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Net Income was 92.638554216867 + 67.540476190476 + -26.293187347932 + 51.096584216726 = $185 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 139.81325301205 + 53.529761904762 + 398.45133819951 + 198.28386336867 = $790 Mil.
Accounts Receivable was $872 Mil.
Revenue was 1311.4065315315 + 1208.6651933702 + 1489.3366666667 + 1359.7962555066 = $5,369 Mil.
Gross Profit was 401.47747747748 + 368.43204419889 + 410.93666666667 + 418.77533039648 = $1,600 Mil.
Total Current Assets was $3,033 Mil.
Total Assets was $6,404 Mil.
Property, Plant and Equipment(Net PPE) was $772 Mil.
Depreciation, Depletion and Amortization(DDA) was $536 Mil.
Selling, General, & Admin. Expense(SGA) was $1,244 Mil.
Total Current Liabilities was $2,248 Mil.
Long-Term Debt & Capital Lease Obligation was $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)
=(815.35542168675 / 5507.6030228147) / (872.11711711712 / 5369.204647075)
=0.14804179 / 0.16242948
=0.9114

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)
=(1599.6215187395 / 5369.204647075) / (1759.7845820372 / 5507.6030228147)
=0.29792523 / 0.31951914
=0.9324

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 - (3310.4638554217 + 743.59759036145) / 6748.9975903614) / (1 - (3033.2263513514 + 772.29166666667) / 6403.5304054054)
=0.3993091 / 0.40571563
=0.9842

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
=5507.6030228147 / 5369.204647075
=1.0258

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))
=(536.4731954358 / (536.4731954358 + 772.29166666667)) / (288.25067365413 / (288.25067365413 + 743.59759036145))
=0.40990801 / 0.27935374
=1.4673

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)
=(1280.5439920335 / 5507.6030228147) / (1244.0876477991 / 5369.204647075)
=0.23250477 / 0.231708
=1.0034

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)
=((0 + 2480.2253012048) / 6748.9975903614) / ((0 + 2248.3096846847) / 6403.5304054054)
=0.36749536 / 0.35110471
=1.0467

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
=(184.98242727614 - 0 - 790.07821648499) / 6748.9975903614
=-0.0897

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.

GEA Group AG has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.


GEA Group AG Beneish M-Score Related Terms

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GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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