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ECN Capital (STU:2EZ) Beneish M-Score : -3.49 (As of Mar. 31, 2025)


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What is ECN Capital 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 -3.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:2EZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.49   Med: -1.22   Max: 3.88
Current: -3.49

During the past 12 years, the highest Beneish M-Score of ECN Capital was 3.88. The lowest was -3.49. And the median was -1.22.


ECN Capital Beneish M-Score Historical Data

The historical data trend for ECN Capital'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.

ECN Capital Beneish M-Score Chart

ECN Capital Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.97 0.94 1.19 -1.22 -3.49

ECN Capital Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Beneish M-Score Get a 7-Day Free Trial 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 -1.22 -1.65 -2.18 -2.95 -3.49

Competitive Comparison of ECN Capital's Beneish M-Score

For the Mortgage Finance subindustry, ECN Capital'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.


ECN Capital's Beneish M-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, ECN Capital's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ECN Capital's Beneish M-Score falls into.


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ECN Capital 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 ECN Capital 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 * 0.5345+0.528 * 0.2733+0.404 * 1.4717+0.892 * 1.3789+0.115 * 0.9118
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.693+4.679 * -0.177873-0.327 * 0.902
=-3.52

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was €519.1 Mil.
Revenue was 47.77 + 59.814 + 52.83 + 43.736 = €204.2 Mil.
Gross Profit was 17.833 + 30.129 + 23.129 + 10.304 = €81.4 Mil.
Total Current Assets was €535.3 Mil.
Total Assets was €895.0 Mil.
Property, Plant and Equipment(Net PPE) was €16.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €15.9 Mil.
Selling, General, & Admin. Expense(SGA) was €51.8 Mil.
Total Current Liabilities was €48.3 Mil.
Long-Term Debt & Capital Lease Obligation was €564.3 Mil.
Net Income was -1.448 + 7.342 + 7.584 + -6.598 = €6.9 Mil.
Non Operating Income was 2.309 + -2.098 + 0.941 + -0.121 = €1.0 Mil.
Cash Flow from Operations was 39.613 + 96.819 + -78.569 + 107.179 = €165.0 Mil.
Total Receivables was €704.3 Mil.
Revenue was 24.66 + 41.953 + 36.288 + 45.149 = €148.1 Mil.
Gross Profit was -8.683 + 7.869 + 3.998 + 12.946 = €16.1 Mil.
Total Current Assets was €854.2 Mil.
Total Assets was €1,178.2 Mil.
Property, Plant and Equipment(Net PPE) was €17.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €13.8 Mil.
Selling, General, & Admin. Expense(SGA) was €54.2 Mil.
Total Current Liabilities was €52.7 Mil.
Long-Term Debt & Capital Lease Obligation was €841.5 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)
=(519.086 / 204.15) / (704.28 / 148.05)
=2.54267 / 4.757042
=0.5345

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)
=(16.13 / 148.05) / (81.395 / 204.15)
=0.10895 / 0.398702
=0.2733

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 - (535.314 + 16.687) / 894.983) / (1 - (854.219 + 17.174) / 1178.192)
=0.383227 / 0.260398
=1.4717

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
=204.15 / 148.05
=1.3789

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))
=(13.755 / (13.755 + 17.174)) / (15.889 / (15.889 + 16.687))
=0.444728 / 0.487752
=0.9118

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)
=(51.823 / 204.15) / (54.229 / 148.05)
=0.253848 / 0.366288
=0.693

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)
=((564.348 + 48.333) / 894.983) / ((841.53 + 52.667) / 1178.192)
=0.684573 / 0.758957
=0.902

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
=(6.88 - 1.031 - 165.042) / 894.983
=-0.177873

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.

ECN Capital has a M-score of -3.52 suggests that the company is unlikely to be a manipulator.


ECN Capital Beneish M-Score Related Terms

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ECN Capital Business Description

Traded in Other Exchanges
Address
199 Bay Street, Suite 4000, Commerce Court West, Toronto, ON, CAN, M5L1A9
ECN Capital Corp is a financial business service provider. The group originates, manages, and advises on credit assets on behalf of its partners, specifically consumer loans and commercial loans. The company's operating segment includes Manufactured Housing Finance and Recreational Vehicle and Marine (RV and Marine) Finance. It generates majority revenue from Manufactured Housing Finance segment.

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