CCL Industries (TSX:CCL.B) Beneish M-Score : -2.71 (As of Apr. 25, 2024)

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What is CCL Industries 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:CCL.B' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -2.54 Max: -2.41
Current: -2.71

During the past 13 years, the highest Beneish M-Score of CCL Industries was -2.41. The lowest was -2.74. And the median was -2.54.

CCL Industries Beneish M-Score Historical Data

The historical data trend for CCL Industries'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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CCL Industries Beneish M-Score Chart

CCL Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.74

-2.59

-2.44

-2.66

-2.71

CCL Industries 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															-2.66	-2.60	-2.70	-2.75	-2.71

Competitive Comparison of CCL Industries's Beneish M-Score

For the Packaging & Containers subindustry, CCL Industries'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.

CCL Industries's Beneish M-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, CCL Industries's Beneish M-Score distribution charts can be found below:

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

CCL Industries 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 CCL Industries 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 * 0.9455

0.528 * 0.9335

0.404 * 1.0009

0.892 * 1.0419

0.115 * 1.0127

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1095

4.679 * -0.039578

0.327 * 0.9278

-2.71

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$1,128 Mil.
Revenue was 1662.5 + 1690.5 + 1644.5 + 1652.1 = C$6,650 Mil.
Gross Profit was 484 + 489.1 + 468.1 + 473.2 = C$1,914 Mil.
Total Current Assets was C$2,685 Mil.
Total Assets was C$8,924 Mil.
Property, Plant and Equipment(Net PPE) was C$2,680 Mil.
Depreciation, Depletion and Amortization(DDA) was C$403 Mil.
Selling, General, & Admin. Expense(SGA) was C$986 Mil.
Total Current Liabilities was C$1,417 Mil.
Long-Term Debt & Capital Lease Obligation was C$2,231 Mil.
Net Income was 38.8 + 169.1 + 155.9 + 166.4 = C$530 Mil.
Non Operating Income was -127.6 + 3.3 + 2.1 + 2.3 = C$-120 Mil.
Cash Flow from Operations was 355.8 + 292.4 + 249 + 106.1 = C$1,003 Mil.

Total Receivables was C$1,145 Mil.
Revenue was 1587.2 + 1658.1 + 1615.2 + 1521.7 = C$6,382 Mil.
Gross Profit was 419.9 + 437.6 + 444.8 + 412.9 = C$1,715 Mil.
Total Current Assets was C$2,820 Mil.
Total Assets was C$8,664 Mil.
Property, Plant and Equipment(Net PPE) was C$2,393 Mil.
Depreciation, Depletion and Amortization(DDA) was C$365 Mil.
Selling, General, & Admin. Expense(SGA) was C$853 Mil.
Total Current Liabilities was C$1,501 Mil.
Long-Term Debt & Capital Lease Obligation was C$2,315 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)
	=	(1128.1 / 6649.6)	/	(1145.1 / 6382.2)
	=	0.169649	/	0.179421
	=	0.9455

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)
	=	(1715.2 / 6382.2)	/	(1914.4 / 6649.6)
	=	0.268747	/	0.287897
	=	0.9335

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 - (2685.3 + 2680.1) / 8924.2)	/	(1 - (2819.7 + 2392.5) / 8664.4)
	=	0.398781	/	0.398435
	=	1.0009

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
	=	6649.6	/	6382.2
	=	1.0419

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))
	=	(365.3 / (365.3 + 2392.5))	/	(403.3 / (403.3 + 2680.1))
	=	0.132461	/	0.130797
	=	1.0127

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)
	=	(985.6 / 6649.6)	/	(852.6 / 6382.2)
	=	0.148219	/	0.13359
	=	1.1095

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)
	=	((2230.5 + 1416.9) / 8924.2)	/	((2315.2 + 1501.4) / 8664.4)
	=	0.408709	/	0.440492
	=	0.9278

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
	=	(530.2 - -119.9	-	1003.3)	/	8924.2
	=	-0.039578

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.

CCL Industries has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.

CCL Industries Beneish M-Score Related Terms

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CCL Industries (TSX:CCL.B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » CCL Industries Inc (TSX:CCL.B) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CCLLF:USA CCDBF:USA CCL.A:Canada

Address

111 Gordon Baker Road, Suite 801, Toronto, ON, CAN, M2H 3R1

Website

https://www.cclind.com

CCL Industries Inc manufactures and sells packaging and packaging-related products. The company operates through various segments, which include The CCL segment, which generates the majority of revenue, sells pressure sensitive and extruded film materials used for labels on consumer packaging, healthcare, automotive, and consumer durable products. The Avery segment sells software, labels, tags, dividers, badges, and specialty card products under the Avery brand. The Checkpoint segment includes the manufacturing and selling of technology-driven, inventory management and labeling solutions. Innovia segment manufactures specialty films. Its geographical segments include Canada; USA and Puerto Rico; Mexico, Brazil, Chile and Argentina; Europe; and Asia, Australia, Africa and New Zealand.

CCL Industries (TSX:CCL.B) Headlines

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