Herfy Food Services Co (SAU:6002) Beneish M-Score : -2.96 (As of Apr. 06, 2025)

View and export this data going back to 2010. Start your Free Trial

What is Herfy Food Services Co 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 -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Herfy Food Services Co's Beneish M-Score or its related term are showing as below:

SAU:6002' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66 Med: -2.74 Max: -0.64
Current: -2.96

During the past 13 years, the highest Beneish M-Score of Herfy Food Services Co was -0.64. The lowest was -3.66. And the median was -2.74.

Herfy Food Services Co Beneish M-Score Historical Data

The historical data trend for Herfy Food Services Co'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.

Herfy Food Services Co Beneish M-Score Chart

Herfy Food Services Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.66

-2.85

-2.62

-1.83

-2.53

Herfy Food Services Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.68	-2.53	-2.28	-2.65	-2.96

Competitive Comparison of Herfy Food Services Co's Beneish M-Score

For the Restaurants subindustry, Herfy Food Services Co'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.

Herfy Food Services Co's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Herfy Food Services Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Herfy Food Services Co's Beneish M-Score falls into.

Save Embed

;

Save Embed

;

Herfy Food Services Co 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 Herfy Food Services Co 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 * 1.0352

0.528 * 1.0144

0.404 * 1.1203

0.892 * 0.992

0.115 * 0.9546

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9897

4.679 * -0.120915

0.327 * 0.9666

-2.96

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ﷼105 Mil.
Revenue was 278.654 + 301.121 + 289.042 + 297.308 = ﷼1,166 Mil.
Gross Profit was 46.48 + 65.533 + 72.104 + 75.216 = ﷼259 Mil.
Total Current Assets was ﷼344 Mil.
Total Assets was ﷼1,804 Mil.
Property, Plant and Equipment(Net PPE) was ﷼1,288 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼172 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼185 Mil.
Total Current Liabilities was ﷼280 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼454 Mil.
Net Income was -33.368 + -23.698 + 0.448 + 5.625 = ﷼-51 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 45.486 + 34.028 + 46.242 + 41.357 = ﷼167 Mil.

Total Receivables was ﷼102 Mil.
Revenue was 313.041 + 288.22 + 275.126 + 299.19 = ﷼1,176 Mil.
Gross Profit was 83.094 + 71.822 + 54.28 + 56.008 = ﷼265 Mil.
Total Current Assets was ﷼384 Mil.
Total Assets was ﷼1,943 Mil.
Property, Plant and Equipment(Net PPE) was ﷼1,395 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼176 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼189 Mil.
Total Current Liabilities was ﷼284 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼534 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)
	=	(104.529 / 1166.125)	/	(101.789 / 1175.577)
	=	0.089638	/	0.086586
	=	1.0352

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)
	=	(265.204 / 1175.577)	/	(259.333 / 1166.125)
	=	0.225595	/	0.222389
	=	1.0144

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 - (344.109 + 1288.125) / 1803.796)	/	(1 - (383.542 + 1394.644) / 1943.152)
	=	0.095112	/	0.084896
	=	1.1203

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
	=	1166.125	/	1175.577
	=	0.992

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))
	=	(176.448 / (176.448 + 1394.644))	/	(171.75 / (171.75 + 1288.125))
	=	0.112309	/	0.117647
	=	0.9546

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)
	=	(185.489 / 1166.125)	/	(188.935 / 1175.577)
	=	0.159064	/	0.160717
	=	0.9897

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)
	=	((454.193 + 279.907) / 1803.796)	/	((533.847 + 284.254) / 1943.152)
	=	0.406975	/	0.421018
	=	0.9666

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
	=	(-50.993 - 0	-	167.113)	/	1803.796
	=	-0.120915

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.

Herfy Food Services Co has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.

Herfy Food Services Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Herfy Food Services Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Herfy Food Services Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Herfy Food Services Co (SAU:6002) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Riyadh-Mourouj Quarter, P.O. Box 86958, Al Moroug District, Al Riyadh, SAU, 11632

Website

https://www.herfy.com

Herfy Food Services Co establishes, operates, and franchises restaurants in the Kingdom of Saudi Arabia. Its restaurants offer cooked meals to companies and others providing catering services; manufactures and sells meat products, as well as bakery and pastry, and sweets and chocolate products; and operates bakeries. In addition, it purchases and sells land for constructing buildings; and owns, uses, maintains, and leases stores and food store fridges. The Company operates in three business segments: Restaurants, Meat factory; and Bakeries. Restaurants, which derives the maximum revenue is involved in providing catering services, operating of restaurants and renting out investment properties.

Herfy Food Services Co Headlines

No Headlines