PDF Solutions (STU:PD9) Beneish M-Score : -2.30 (As of Dec. 15, 2024)

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What is PDF Solutions 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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:PD9' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74 Med: -2.8 Max: -1.57
Current: -2.3

During the past 13 years, the highest Beneish M-Score of PDF Solutions was -1.57. The lowest was -3.74. And the median was -2.80.

PDF Solutions Beneish M-Score Historical Data

The historical data trend for PDF Solutions'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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PDF Solutions Beneish M-Score Chart

PDF Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.50

-3.74

-2.81

-3.15

-2.51

PDF Solutions 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															-3.22	-2.51	-2.47	-2.70	-2.30

Competitive Comparison of PDF Solutions's Beneish M-Score

For the Software - Application subindustry, PDF Solutions'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.

PDF Solutions's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, PDF Solutions's Beneish M-Score distribution charts can be found below:

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

PDF Solutions 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 PDF Solutions 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 * 1.0828

0.528 * 0.9959

0.404 * 1.3325

0.892 * 1.0119

0.115 * 1.2799

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1063

4.679 * -0.018478

0.327 * 1.0323

-2.34

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €42.0 Mil.
Revenue was 41.815 + 38.703 + 38.005 + 37.712 = €156.2 Mil.
Gross Profit was 30.566 + 27.341 + 25.559 + 25.613 = €109.1 Mil.
Total Current Assets was €172.4 Mil.
Total Assets was €276.9 Mil.
Property, Plant and Equipment(Net PPE) was €45.4 Mil.
Depreciation, Depletion and Amortization(DDA) was €6.8 Mil.
Selling, General, & Admin. Expense(SGA) was €61.4 Mil.
Total Current Liabilities was €52.0 Mil.
Long-Term Debt & Capital Lease Obligation was €3.5 Mil.
Net Income was 1.988 + 1.584 + -0.362 + 0.813 = €4.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 8.357 + 0.635 + -1.713 + 1.861 = €9.1 Mil.

Total Receivables was €38.4 Mil.
Revenue was 39.682 + 38.398 + 38.069 + 38.254 = €154.4 Mil.
Gross Profit was 26.3 + 26.981 + 26.951 + 27.123 = €107.4 Mil.
Total Current Assets was €182.1 Mil.
Total Assets was €264.7 Mil.
Property, Plant and Equipment(Net PPE) was €40.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €8.1 Mil.
Selling, General, & Admin. Expense(SGA) was €54.9 Mil.
Total Current Liabilities was €46.8 Mil.
Long-Term Debt & Capital Lease Obligation was €4.6 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)
	=	(42.048 / 156.235)	/	(38.379 / 154.403)
	=	0.269133	/	0.248564
	=	1.0828

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)
	=	(107.355 / 154.403)	/	(109.079 / 156.235)
	=	0.695291	/	0.698173
	=	0.9959

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 - (172.447 + 45.391) / 276.923)	/	(1 - (182.082 + 40.199) / 264.658)
	=	0.213363	/	0.16012
	=	1.3325

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
	=	156.235	/	154.403
	=	1.0119

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))
	=	(8.102 / (8.102 + 40.199))	/	(6.846 / (6.846 + 45.391))
	=	0.16774	/	0.131057
	=	1.2799

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)
	=	(61.436 / 156.235)	/	(54.88 / 154.403)
	=	0.393228	/	0.355434
	=	1.1063

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)
	=	((3.487 + 52.015) / 276.923)	/	((4.612 + 46.773) / 264.658)
	=	0.200424	/	0.194156
	=	1.0323

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
	=	(4.023 - 0	-	9.14)	/	276.923
	=	-0.018478

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.

PDF Solutions has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

PDF Solutions Beneish M-Score Related Terms

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PDF Solutions Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » PDF Solutions Inc (STU:PD9) » Definitions » Beneish M-Score

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Traded in Other Exchanges

PDFS:USA PD9:Germany

Address

2858 De La Cruz Boulevard, Santa Clara, CA, USA, 95050

Website

https://www.pdf.com

PDF Solutions Inc offers products and services designed to empower engineers and data scientists across the semiconductor ecosystem to improve the yield, quality, and profitability of their products. The solutions combine proprietary software, physical intellectual property (or IP) for integrated circuit (or IC) designs, electrical measurement hardware tools, various methodologies, and professional services. The company's products and services are sold to integrated device manufacturers (or IDMs), fabless semiconductor companies, foundries, outsourced semiconductor assembly and test (or OSATs), and system houses.

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