Ho Tung Chemical (TPE:1714) Beneish M-Score : -2.72 (As of Mar. 28, 2025)

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What is Ho Tung Chemical 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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:1714' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81 Med: -2.71 Max: -2.01
Current: -2.72

During the past 13 years, the highest Beneish M-Score of Ho Tung Chemical was -2.01. The lowest was -3.81. And the median was -2.71.

Ho Tung Chemical Beneish M-Score Historical Data

The historical data trend for Ho Tung Chemical'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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Ho Tung Chemical Beneish M-Score Chart

Ho Tung Chemical Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.81

-2.45

-2.01

-2.84

-2.72

Ho Tung Chemical 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															-2.84	-3.00	-2.78	-2.94	-2.72

Competitive Comparison of Ho Tung Chemical's Beneish M-Score

For the Chemicals subindustry, Ho Tung Chemical'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.

Ho Tung Chemical's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ho Tung Chemical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ho Tung Chemical's Beneish M-Score falls into.

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Ho Tung Chemical 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 Ho Tung Chemical 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 * 1.006

0.528 * 1.0144

0.404 * 0.882

0.892 * 1.0161

0.115 * 0.9276

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0693

4.679 * -0.041164

0.327 * 1.0185

-2.72

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was NT$3,277 Mil.
Revenue was 6031.153 + 5098.835 + 4866.356 + 4622.904 = NT$20,619 Mil.
Gross Profit was 611.3 + 466.607 + 434.788 + 406.857 = NT$1,920 Mil.
Total Current Assets was NT$14,736 Mil.
Total Assets was NT$23,570 Mil.
Property, Plant and Equipment(Net PPE) was NT$6,242 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$598 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,170 Mil.
Total Current Liabilities was NT$3,819 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,118 Mil.
Net Income was 58.542 + 86.998 + -18.726 + 288.649 = NT$415 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -69.226 + 793.115 + 176.501 + 485.307 = NT$1,386 Mil.

Total Receivables was NT$3,206 Mil.
Revenue was 5181.252 + 5182.724 + 4714.262 + 5214.172 = NT$20,292 Mil.
Gross Profit was 525.599 + 495.874 + 399.369 + 495.521 = NT$1,916 Mil.
Total Current Assets was NT$13,283 Mil.
Total Assets was NT$22,601 Mil.
Property, Plant and Equipment(Net PPE) was NT$6,500 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$574 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,077 Mil.
Total Current Liabilities was NT$3,169 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2,420 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)
	=	(3276.761 / 20619.248)	/	(3205.707 / 20292.41)
	=	0.158918	/	0.157976
	=	1.006

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)
	=	(1916.363 / 20292.41)	/	(1919.552 / 20619.248)
	=	0.094437	/	0.093095
	=	1.0144

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 - (14735.576 + 6241.805) / 23570.2)	/	(1 - (13282.783 + 6499.689) / 22601.231)
	=	0.110004	/	0.124717
	=	0.882

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
	=	20619.248	/	20292.41
	=	1.0161

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))
	=	(573.871 / (573.871 + 6499.689))	/	(598.235 / (598.235 + 6241.805))
	=	0.081129	/	0.087461
	=	0.9276

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)
	=	(1169.782 / 20619.248)	/	(1076.641 / 20292.41)
	=	0.056733	/	0.053056
	=	1.0693

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)
	=	((2117.985 + 3818.582) / 23570.2)	/	((2420.015 + 3168.965) / 22601.231)
	=	0.251867	/	0.247287
	=	1.0185

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
	=	(415.463 - 0	-	1385.697)	/	23570.2
	=	-0.041164

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.

Ho Tung Chemical has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Ho Tung Chemical Beneish M-Score Related Terms

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Ho Tung Chemical Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ho Tung Chemical Corp (TPE:1714) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 1, Zhugong 2nd Lane, Zhuhouli, Renwu District, Kaohsiung, TWN

Website

https://www.htgroup.com.tw

Ho Tung Chemical Corp is engaged in the manufacturing, processing, and sales of chemicals such as normal paraffin, alkenes, etc. The company's key products comprise Paraffin, Linear Alkylbenzene, Anionic Surfactants, Cationic Surfactants, Non-ionic Surfactants, Amphoteric Surfactants, Solvents, and others. It also focuses on other businesses like oil, investment, and cement. The company's reportable segments are; Chemicals which derives the majority of its revenue, Oil products, Cement, and Investments. Geographically, the company generates a majority of its revenue from China and the rest from Taiwan, other parts of Southeast Asia, and other regions.

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