M3 Technology (TPE:6799) Beneish M-Score : -2.97 (As of Dec. 14, 2024)

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What is M3 Technology 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 -2.97 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for M3 Technology's Beneish M-Score or its related term are showing as below:

TPE:6799' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09 Med: -2.68 Max: -1.46
Current: -2.97

During the past 8 years, the highest Beneish M-Score of M3 Technology was -1.46. The lowest was -3.09. And the median was -2.68.

M3 Technology Beneish M-Score Historical Data

The historical data trend for M3 Technology'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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M3 Technology Beneish M-Score Chart

M3 Technology Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.46

-2.38

-2.70

M3 Technology Quarterly Data
	Jun19	Dec19	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															-2.78	-2.70	-2.44	-2.68	-2.97

Competitive Comparison of M3 Technology's Beneish M-Score

For the Semiconductors subindustry, M3 Technology'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.

M3 Technology's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, M3 Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where M3 Technology's Beneish M-Score falls into.

M3 Technology 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 M3 Technology 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 * 0.8648

0.528 * 0.9456

0.404 * 1.2635

0.892 * 0.9368

0.115 * 0.9325

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3099

4.679 * -0.08586

0.327 * 0.7648

-2.97

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was NT$155.0 Mil.
Revenue was 221.035 + 242.5 + 222.219 + 264.199 = NT$950.0 Mil.
Gross Profit was 103.625 + 122.098 + 96.973 + 131.6 = NT$454.3 Mil.
Total Current Assets was NT$1,500.6 Mil.
Total Assets was NT$1,689.3 Mil.
Property, Plant and Equipment(Net PPE) was NT$163.7 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$45.8 Mil.
Selling, General, & Admin. Expense(SGA) was NT$114.5 Mil.
Total Current Liabilities was NT$170.9 Mil.
Long-Term Debt & Capital Lease Obligation was NT$0.1 Mil.
Net Income was 23.079 + 28.885 + 39.527 + 59.376 = NT$150.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0.0 Mil.
Cash Flow from Operations was 34.631 + 44.979 + 97.564 + 118.733 = NT$295.9 Mil.

Total Receivables was NT$191.3 Mil.
Revenue was 282.711 + 257.004 + 218.65 + 255.643 = NT$1,014.0 Mil.
Gross Profit was 122.001 + 117.16 + 100.429 + 118.943 = NT$458.5 Mil.
Total Current Assets was NT$1,342.5 Mil.
Total Assets was NT$1,518.0 Mil.
Property, Plant and Equipment(Net PPE) was NT$157.8 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$40.4 Mil.
Selling, General, & Admin. Expense(SGA) was NT$93.3 Mil.
Total Current Liabilities was NT$198.0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$2.8 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)
	=	(154.998 / 949.953)	/	(191.312 / 1014.008)
	=	0.163164	/	0.188669
	=	0.8648

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)
	=	(458.533 / 1014.008)	/	(454.296 / 949.953)
	=	0.452199	/	0.47823
	=	0.9456

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 - (1500.615 + 163.699) / 1689.262)	/	(1 - (1342.497 + 157.772) / 1518.013)
	=	0.014769	/	0.011689
	=	1.2635

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
	=	949.953	/	1014.008
	=	0.9368

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))
	=	(40.378 / (40.378 + 157.772))	/	(45.773 / (45.773 + 163.699))
	=	0.203775	/	0.218516
	=	0.9325

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)
	=	(114.52 / 949.953)	/	(93.324 / 1014.008)
	=	0.120553	/	0.092035
	=	1.3099

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)
	=	((0.055 + 170.861) / 1689.262)	/	((2.831 + 197.999) / 1518.013)
	=	0.101178	/	0.132298
	=	0.7648

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
	=	(150.867 - 0	-	295.907)	/	1689.262
	=	-0.08586

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.

M3 Technology has a M-score of -2.97 suggests that the company is unlikely to be a manipulator.

M3 Technology Beneish M-Score Related Terms

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M3 Technology Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

No. 19, Lane 178, Ruihu Street, 2nd Floor, Neihu District, Taipei, TWN

Website

https://www.m3tekic.com

M3 Technology Inc is engaged in the design, testing, production and marketing of analog and mixed-signal integrated circuits, and focuses on the design and sales of high-end power management ICs, providing high-efficiency , power management IC chip with less inductance, stable voltage and low interference. The main team is a power IC design company composed of elites from the United States , Taiwan and Greater China. Power management ICs have been widely used in computers, communications and consumer electronics products.

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