Spero Therapeutics (STU:2HA) Beneish M-Score : 22.69 (As of Apr. 25, 2024)

View and export this data going back to 2019. Start your Free Trial

What is Spero Therapeutics 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.

Warning Sign:

Beneish M-Score 22.69 higher than -1.78, which implies that the company might have manipulated its financial results.

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

STU:2HA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.02 Med: 5.76 Max: 22.69
Current: 22.69

During the past 9 years, the highest Beneish M-Score of Spero Therapeutics was 22.69. The lowest was -2.02. And the median was 5.76.

Spero Therapeutics Beneish M-Score Historical Data

The historical data trend for Spero Therapeutics'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.

Spero Therapeutics Beneish M-Score Chart

Spero Therapeutics Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

0.08

-2.02

5.76

9.05

22.69

Spero Therapeutics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															9.05	8.51	15.56	20.21	22.69

Competitive Comparison of Spero Therapeutics's Beneish M-Score

For the Biotechnology subindustry, Spero Therapeutics'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.

Spero Therapeutics's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Spero Therapeutics's Beneish M-Score distribution charts can be found below:

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

Spero Therapeutics 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 Spero Therapeutics 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 * 23.3987

0.528 * 1

0.404 * 5.6053

0.892 * 1.9422

0.115 * 1.6798

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3555

4.679 * 0.33367

0.327 * 1.0539

22.56

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €46.49 Mil.
Revenue was 65.864 + 21.909 + 0.727 + 0.691 = €89.19 Mil.
Gross Profit was 65.864 + 21.909 + 0.727 + 0.691 = €89.19 Mil.
Total Current Assets was €120.32 Mil.
Total Assets was €167.25 Mil.
Property, Plant and Equipment(Net PPE) was €3.81 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.34 Mil.
Selling, General, & Admin. Expense(SGA) was €23.71 Mil.
Total Current Liabilities was €34.07 Mil.
Long-Term Debt & Capital Lease Obligation was €3.51 Mil.
Net Income was 46.942 + -3.003 + -10.997 + -12.39 = €20.55 Mil.
Non Operating Income was 0.003 + -4.981 + -0.006 + -0.002 = €-4.99 Mil.
Cash Flow from Operations was -16.041 + 14.912 + -17.135 + -12.005 = €-30.27 Mil.

Total Receivables was €1.02 Mil.
Revenue was 43.758 + 1.093 + 0.848 + 0.224 = €45.92 Mil.
Gross Profit was 43.758 + 1.093 + 0.848 + 0.224 = €45.92 Mil.
Total Current Assets was €107.21 Mil.
Total Assets was €117.81 Mil.
Property, Plant and Equipment(Net PPE) was €5.18 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.83 Mil.
Selling, General, & Admin. Expense(SGA) was €34.34 Mil.
Total Current Liabilities was €20.44 Mil.
Long-Term Debt & Capital Lease Obligation was €4.68 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)
	=	(46.489 / 89.191)	/	(1.023 / 45.923)
	=	0.52123	/	0.022276
	=	23.3987

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)
	=	(45.923 / 45.923)	/	(89.191 / 89.191)
	=	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 - (120.318 + 3.812) / 167.252)	/	(1 - (107.21 + 5.184) / 117.813)
	=	0.257827	/	0.045997
	=	5.6053

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
	=	89.191	/	45.923
	=	1.9422

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))
	=	(0.832 / (0.832 + 5.184))	/	(0.342 / (0.342 + 3.812))
	=	0.138298	/	0.08233
	=	1.6798

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)
	=	(23.708 / 89.191)	/	(34.342 / 45.923)
	=	0.265812	/	0.747817
	=	0.3555

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)
	=	((3.508 + 34.069) / 167.252)	/	((4.679 + 20.437) / 117.813)
	=	0.224673	/	0.213185
	=	1.0539

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
	=	(20.552 - -4.986	-	-30.269)	/	167.252
	=	0.33367

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.

Spero Therapeutics has a M-score of 22.56 signals that the company is likely to be a manipulator.

Spero Therapeutics Beneish M-Score Related Terms

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

Spero Therapeutics (STU:2HA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Spero Therapeutics Inc (STU:2HA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SPRO:USA

Address

675 Massachusetts Avenue, 14th Floor, Cambridge, MA, USA, 02139

Website

https://www.sperotherapeutics.com

Spero Therapeutics Inc is a clinical-stage biopharmaceutical firm. It focuses on identifying, developing and commercializing novel treatments for MDR (Multi-drug-resistant) bacterial infections and rare diseases. The company's product candidate, tebipenem pivoxil hydrobromide or tebipenem HBr, is designed to be an oral carbapenem-class antibiotic for use in adults to treat MDR Gram-negative infections. It is also developing SPR720, a novel oral antibiotic designed for the treatment of a rare, orphan disease caused by pulmonary non-tuberculous mycobacterial infections, or NTM disease. Besides, it is also focused on SPR206, a next-generation polymyxin investigational product candidate, being developed as an IV-administered medicine to treat MDR Gram-negative infections in the hospital.

Spero Therapeutics (STU:2HA) Headlines

No Headlines