Doman Building Materials Group (TSX:DBM) Beneish M-Score : -2.68 (As of Dec. 13, 2024)

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What is Doman Building Materials Group 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Doman Building Materials Group's Beneish M-Score or its related term are showing as below:

TSX:DBM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22 Med: -2.41 Max: -1.64
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Doman Building Materials Group was -1.64. The lowest was -3.22. And the median was -2.41.

Doman Building Materials Group Beneish M-Score Historical Data

The historical data trend for Doman Building Materials Group'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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Doman Building Materials Group Beneish M-Score Chart

Doman Building Materials Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.81

-2.86

-1.64

-2.99

-2.73

Doman Building Materials Group 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															-3.08	-2.73	-2.50	-2.54	-2.68

Competitive Comparison of Doman Building Materials Group's Beneish M-Score

For the Industrial Distribution subindustry, Doman Building Materials Group'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.

Doman Building Materials Group's Beneish M-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Doman Building Materials Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Doman Building Materials Group's Beneish M-Score falls into.

Doman Building Materials Group 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 Doman Building Materials Group 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 * 1.0694

0.528 * 1.009

0.404 * 0.9557

0.892 * 0.9788

0.115 * 1.0253

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0551

4.679 * -0.046954

0.327 * 1.025

-2.68

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was C$238 Mil.
Revenue was 663.089 + 689.834 + 602.475 + 527.387 = C$2,483 Mil.
Gross Profit was 102.95 + 108.1 + 100.418 + 80.564 = C$392 Mil.
Total Current Assets was C$617 Mil.
Total Assets was C$1,490 Mil.
Property, Plant and Equipment(Net PPE) was C$285 Mil.
Depreciation, Depletion and Amortization(DDA) was C$70 Mil.
Selling, General, & Admin. Expense(SGA) was C$215 Mil.
Total Current Liabilities was C$210 Mil.
Long-Term Debt & Capital Lease Obligation was C$653 Mil.
Net Income was 14.567 + 16.982 + 14.374 + 10.525 = C$56 Mil.
Non Operating Income was -1.161 + -0.371 + -0.817 + 0 = C$-2 Mil.
Cash Flow from Operations was 180.047 + 70.851 + -129.77 + 7.626 = C$129 Mil.

Total Receivables was C$227 Mil.
Revenue was 643.91 + 710.748 + 609.119 + 572.875 = C$2,537 Mil.
Gross Profit was 102.777 + 121.169 + 98.21 + 81.999 = C$404 Mil.
Total Current Assets was C$568 Mil.
Total Assets was C$1,429 Mil.
Property, Plant and Equipment(Net PPE) was C$271 Mil.
Depreciation, Depletion and Amortization(DDA) was C$69 Mil.
Selling, General, & Admin. Expense(SGA) was C$208 Mil.
Total Current Liabilities was C$206 Mil.
Long-Term Debt & Capital Lease Obligation was C$602 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)
	=	(237.761 / 2482.785)	/	(227.147 / 2536.652)
	=	0.095764	/	0.089546
	=	1.0694

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)
	=	(404.155 / 2536.652)	/	(392.032 / 2482.785)
	=	0.159326	/	0.1579
	=	1.009

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 - (617.053 + 285.12) / 1489.92)	/	(1 - (568.005 + 271.055) / 1428.843)
	=	0.394482	/	0.41277
	=	0.9557

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
	=	2482.785	/	2536.652
	=	0.9788

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))
	=	(68.66 / (68.66 + 271.055))	/	(70.004 / (70.004 + 285.12))
	=	0.202111	/	0.197126
	=	1.0253

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)
	=	(215.199 / 2482.785)	/	(208.379 / 2536.652)
	=	0.086676	/	0.082147
	=	1.0551

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)
	=	((653.346 + 210.018) / 1489.92)	/	((601.732 + 206.055) / 1428.843)
	=	0.57947	/	0.565343
	=	1.025

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
	=	(56.448 - -2.349	-	128.754)	/	1489.92
	=	-0.046954

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.

Doman Building Materials Group has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Doman Building Materials Group Beneish M-Score Related Terms

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Doman Building Materials Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Doman Building Materials Group Ltd (TSX:DBM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CWXZF:USA

Address

1100 Melville Street, Suite 1600, PO Box 39, Vancouver, BC, CAN, V6E 4A6

Website

https://www.domanbm.com

Doman Building Materials Group Ltd is a wholesale distributor of building materials and home renovation products. The company services the new home construction, home renovation and industrial markets by supplying the retail and wholesale lumber and building materials industry, hardware stores, industrial and furniture manufacturers and similar concerns. Its operations also include timber ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through CanWel Fibre Corp. Its operating segments are Building Materials and Other. Geographically the group has a business presence in Canada and the U.S.

Executives

Amar Doman	Director
Siegfried Josef Thoma	Director
Marc Seguin	Director
James Salter Code	Senior Officer

Doman Building Materials Group Headlines

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