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SFST (Southern First Bancshares) Beneish M-Score : -2.51 (As of Dec. 14, 2024)


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What is Southern First Bancshares Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SFST' s Beneish M-Score Range Over the Past 10 Years
Min: -4.29   Med: -2.3   Max: -1.89
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Southern First Bancshares was -1.89. The lowest was -4.29. And the median was -2.30.


Southern First Bancshares 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 Southern First Bancshares 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 * 1+0.528 * 1+0.404 * 1.0023+0.892 * 0.9735+0.115 * 0.937
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2083+4.679 * -0.004828-0.327 * 0.8194
=-2.51

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $0.00 Mil.
Revenue was 23.766 + 23.051 + 21.309 + 21.39 = $89.52 Mil.
Gross Profit was 23.766 + 23.051 + 21.309 + 21.39 = $89.52 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $4,174.63 Mil.
Property, Plant and Equipment(Net PPE) was $90.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.83 Mil.
Selling, General, & Admin. Expense(SGA) was $47.66 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $264.90 Mil.
Net Income was 4.382 + 2.999 + 2.522 + 4.167 = $14.07 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 26.33 + 3.959 + -2.924 + 6.86 = $34.23 Mil.
Total Receivables was $0.00 Mil.
Revenue was 22.095 + 21.561 + 22.468 + 25.826 = $91.95 Mil.
Gross Profit was 22.095 + 21.561 + 22.468 + 25.826 = $91.95 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $4,019.96 Mil.
Property, Plant and Equipment(Net PPE) was $95.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.79 Mil.
Selling, General, & Admin. Expense(SGA) was $40.52 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $311.30 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)
=(0 / 89.516) / (0 / 91.95)
=0 / 0
=1

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)
=(91.95 / 91.95) / (89.516 / 89.516)
=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 - (0 + 90.158) / 4174.631) / (1 - (0 + 95.743) / 4019.957)
=0.978403 / 0.976183
=1.0023

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
=89.516 / 91.95
=0.9735

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))
=(4.788 / (4.788 + 95.743)) / (4.828 / (4.828 + 90.158))
=0.047627 / 0.050829
=0.937

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)
=(47.659 / 89.516) / (40.516 / 91.95)
=0.532408 / 0.440631
=1.2083

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)
=((264.903 + 0) / 4174.631) / ((311.295 + 0) / 4019.957)
=0.063455 / 0.077437
=0.8194

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
=(14.07 - 0 - 34.225) / 4174.631
=-0.004828

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.

Southern First Bancshares has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.


Southern First Bancshares Beneish M-Score Related Terms

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Southern First Bancshares Business Description

Traded in Other Exchanges
N/A
Address
6 Verdae Boulevard, Greenville, SC, USA, 29607
Southern First Bancshares Inc is a bank holding company. The company engaged in the business of accepting demand deposits and savings deposits insured by the Federal Deposit Insurance Corporation (the "FDIC"), and providing commercial, consumer and mortgage loans to the general public of which a majority of the revenue is derived from the Commercial and Retail Banking segment which includes the provision of traditional deposit and lending products and services to its commercial and retail banking clients.
Executives
Leighton M Cubbage director P.O. BOX 17465, GREENVILLE SC 29606
Anne S Ellefson director
Seaver R Arthur Jr officer: Chief Executive Officer P.O. BOX 17465, GREENVILLE SC 29606
Anna T Locke director P.O. BOX 17465, GREENVILLE SC 29606
David G Ellison director P.O. BOX 17465, GREENVILLE SC 29606
David Andrew Borrmann officer: Chief Financial Officer P.O. BOX 17465, GREENVILLE SC 29606
Silvia T King officer: EVP, Chief Human Resource Off P.O. BOX 17465, GREENVILLE SC 29606
Tecumseh Jr Hooper director
Calvin C Hurst officer: Chief Banking Officer P.O. BOX 17465, GREENVILLE SC 29606
Aiken William M. Iii officer: Chief Risk Officer PO BOX 17465, GREENVILLE SC 29606
Mark A Cothran director
Terry Grayson-caprio director P.O. BOX 17465, GREENVILLE SC 29606
Ray Lattimore director P.O. BOX 17465, GREENVILLE SC 29606
William Iv Maner director P.O. BOX 17465, GREENVILLE SC 29606
Michael D Dowling officer: Executive Vice President, CFO P.O. BOX 17465, GREENVILLE SC 29606