Stem Beneish M-Score Historical Data
The historical data trend for Stem'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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Stem Annual Data
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|
Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
- |
- |
-4.51 |
3.81 |
3.41 |
|
Stem Quarterly Data
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|
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
|
|
|
|
|
3.81 |
-1.32 |
-0.86 |
1.33 |
3.41 |
Competitive Comparison
For the Software - Infrastructure subindustry, Stem'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.
Stem Beneish M-Score Distribution
For the Software industry and Technology sector, Stem's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Stem's Beneish M-Score falls into.
Stem 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 Stem 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 * 1.067 | + | 0.528 * 11.4807 | + | 0.404 * 1.0622 | + | 0.892 * 1.2715 | + | 0.115 * 0.884 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.79 | + | 4.679 * 0.009324 | - | 0.327 * 1.1309 |
| = | 3.41 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $302.9 Mil.
Revenue was 167.424 + 133.74 + 92.946 + 67.405 = $461.5 Mil.
Gross Profit was 11.091 + -20.291 + 11.871 + 0.994 = $3.7 Mil.
Total Current Assets was $473.0 Mil.
Total Assets was $1,357.0 Mil.
Property, Plant and Equipment(Net PPE) was $89.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.3 Mil.
Selling, General, & Admin. Expense(SGA) was $126.5 Mil.
Total Current Liabilities was $251.1 Mil.
Long-Term Debt & Capital Lease Obligation was $534.1 Mil.
Net Income was -37.685 + -77.072 + 19.122 + -44.778 = $-140.4 Mil.
Non Operating Income was 0.807 + -4.442 + 58.385 + -0.439 = $54.3 Mil.
Cash Flow from Operations was -2.129 + -4.009 + -165.418 + -35.821 = $-207.4 Mil.
|
Total Receivables was $223.3 Mil.
Revenue was 155.444 + 99.501 + 66.947 + 41.088 = $363.0 Mil.
Gross Profit was 12.533 + 9.127 + 7.788 + 3.644 = $33.1 Mil.
Total Current Assets was $532.8 Mil.
Total Assets was $1,421.9 Mil.
Property, Plant and Equipment(Net PPE) was $105.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.4 Mil.
Selling, General, & Admin. Expense(SGA) was $125.9 Mil.
Total Current Liabilities was $267.0 Mil.
Long-Term Debt & Capital Lease Obligation was $460.5 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) |
| = | (302.921 / 461.515) | / | (223.293 / 362.98) |
| = | 0.656362 | / | 0.615166 |
| | = | 1.067 |
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) |
| = | (33.092 / 362.98) | / | (3.665 / 461.515) |
| = | 0.091168 | / | 0.007941 |
| | = | 11.4807 |
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 - (472.965 + 89.486) / 1356.977) | / | (1 - (532.755 + 105.346) / 1421.893) |
| = | 0.585512 | / | 0.551231 |
| | = | 1.0622 |
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 |
| = | 461.515 | / | 362.98 |
| | = | 1.2715 |
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)) |
| = | (45.434 / (45.434 + 105.346)) | / | (46.275 / (46.275 + 89.486)) |
| = | 0.301326 | / | 0.340856 |
| | = | 0.884 |
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) |
| = | (126.471 / 461.515) | / | (125.91 / 362.98) |
| = | 0.274034 | / | 0.346879 |
| | = | 0.79 |
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) |
| = | ((534.088 + 251.08) / 1356.977) | / | ((460.474 + 266.998) / 1421.893) |
| = | 0.578616 | / | 0.511622 |
| | = | 1.1309 |
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 |
| = | (-140.413 - 54.311 | - | -207.377) | / | 1356.977 |
| | = | 0.009324 |
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.
Stem has a M-score of 3.41 signals that the company is likely to be a manipulator.
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