Fire & Flower Holdings (TSX:FAF) Beneish M-Score : 0.00 (As of May. 01, 2024)

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What is Fire & Flower Holdings 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.

The historical rank and industry rank for Fire & Flower Holdings's Beneish M-Score or its related term are showing as below:

During the past 3 years, the highest Beneish M-Score of Fire & Flower Holdings was 0.00. The lowest was 0.00. And the median was 0.00.

Fire & Flower Holdings Beneish M-Score Historical Data

The historical data trend for Fire & Flower Holdings'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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Fire & Flower Holdings Beneish M-Score Chart

Fire & Flower Holdings Annual Data

Trend

Jan20

Jan21

Jan22

Beneish M-Score

-2.17

-1.63

Fire & Flower Holdings Quarterly Data
	Feb18	May18	Aug18	Nov18	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23
Beneish M-Score	Get a 7-Day Free Trial															-1.63	-1.99	-2.68	-3.02	-3.68

Competitive Comparison of Fire & Flower Holdings's Beneish M-Score

For the Pharmaceutical Retailers subindustry, Fire & Flower Holdings'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.

Fire & Flower Holdings's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Fire & Flower Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Fire & Flower Holdings's Beneish M-Score falls into.

Fire & Flower Holdings 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 Fire & Flower Holdings 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 * 0.7166

0.528 * 1.2928

0.404 * 0.9085

0.892 * 0.9609

0.115 * 0.6799

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0645

4.679 * -0.188606

0.327 * 1.295

-3.68

This Year (Mar23) TTM:

Last Year (Jan22) TTM:

Total Receivables was C$11.0 Mil.
Revenue was 43.108 + 43.835 + 40.742 + 40.944 = C$168.6 Mil.
Gross Profit was 12.463 + 11.823 + 9.699 + 12.166 = C$46.2 Mil.
Total Current Assets was C$38.0 Mil.
Total Assets was C$147.0 Mil.
Property, Plant and Equipment(Net PPE) was C$61.7 Mil.
Depreciation, Depletion and Amortization(DDA) was C$21.0 Mil.
Selling, General, & Admin. Expense(SGA) was C$61.5 Mil.
Total Current Liabilities was C$50.8 Mil.
Long-Term Debt & Capital Lease Obligation was C$37.2 Mil.
Net Income was -10.096 + -28.085 + -21.557 + -9.906 = C$-69.6 Mil.
Non Operating Income was -1.284 + -17.346 + -6.77 + 0.161 = C$-25.2 Mil.
Cash Flow from Operations was -2.643 + -2.455 + -5.618 + -5.958 = C$-16.7 Mil.

Total Receivables was C$15.9 Mil.
Revenue was 42.697 + 45.412 + 43.306 + 44.084 = C$175.5 Mil.
Gross Profit was 13.705 + 15.698 + 16.173 + 16.518 = C$62.1 Mil.
Total Current Assets was C$52.7 Mil.
Total Assets was C$222.9 Mil.
Property, Plant and Equipment(Net PPE) was C$91.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$19.1 Mil.
Selling, General, & Admin. Expense(SGA) was C$60.1 Mil.
Total Current Liabilities was C$54.3 Mil.
Long-Term Debt & Capital Lease Obligation was C$48.8 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)
	=	(10.981 / 168.629)	/	(15.948 / 175.499)
	=	0.065119	/	0.090872
	=	0.7166

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)
	=	(62.094 / 175.499)	/	(46.151 / 168.629)
	=	0.353814	/	0.273684
	=	1.2928

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 - (38.014 + 61.697) / 147.031)	/	(1 - (52.666 + 91.255) / 222.88)
	=	0.321837	/	0.354267
	=	0.9085

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
	=	168.629	/	175.499
	=	0.9609

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))
	=	(19.08 / (19.08 + 91.255))	/	(21.044 / (21.044 + 61.697))
	=	0.172928	/	0.254336
	=	0.6799

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)
	=	(61.52 / 168.629)	/	(60.148 / 175.499)
	=	0.364825	/	0.342726
	=	1.0645

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)
	=	((37.216 + 50.823) / 147.031)	/	((48.795 + 54.258) / 222.88)
	=	0.598778	/	0.46237
	=	1.295

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
	=	(-69.644 - -25.239	-	-16.674)	/	147.031
	=	-0.188606

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.

Fire & Flower Holdings has a M-score of -3.68 suggests that the company is unlikely to be a manipulator.

Fire & Flower Holdings Beneish M-Score Related Terms

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Fire & Flower Holdings (TSX:FAF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Fire & Flower Holdings Corp (TSX:FAF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

130 King Street West, Suite 2500, Toronto, ON, CAN, M5X 1C8

Website

https://www.fireandflower.com

Fire & Flower Holdings Corp is an independent adult-use cannabis retailer focused on the Canadian market and international expansion opportunities. The company guides consumers through the complex world of cannabis through education-focused, retailing while the Hifyrea digital platform connects consumers with cannabis products. The company has three reportable segments namely, Retail segment, Wholesale and Logistics segment, and Digital Platform. Majority of the revenue is earned from Retail segment.