Exco Technologies (TSX:XTC) Beneish M-Score

: -2.78 (As of Today)

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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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:XTC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51 Med: -2.53 Max: 1.89
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Exco Technologies was 1.89. The lowest was -3.51. And the median was -2.53.

Exco Technologies Beneish M-Score Historical Data

The historical data trend for Exco Technologies'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.

* Premium members only.

Exco Technologies Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

-3.03

-2.92

-2.66

-2.34

-2.74

Exco Technologies 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																-2.31	-2.27	-2.41	-2.74	-2.78

Competitive Comparison

For the Auto Parts subindustry, Exco Technologies'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.

Exco Technologies Beneish M-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Exco Technologies's Beneish M-Score distribution charts can be found below:

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

Exco Technologies 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 Exco Technologies 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 * 0.8158

0.528 * 0.9509

0.404 * 0.9316

0.892 * 1.2062

0.115 * 0.9061

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0047

4.679 * -0.054678

0.327 * 0.968

-2.78

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$116.2 Mil.
Revenue was 156.71 + 160.152 + 164.551 + 155.507 = C$636.9 Mil.
Gross Profit was 32.832 + 35.731 + 33.359 + 32.784 = C$134.7 Mil.
Total Current Assets was C$253.9 Mil.
Total Assets was C$603.5 Mil.
Property, Plant and Equipment(Net PPE) was C$227.2 Mil.
Depreciation, Depletion and Amortization(DDA) was C$32.9 Mil.
Selling, General, & Admin. Expense(SGA) was C$57.5 Mil.
Total Current Liabilities was C$97.1 Mil.
Long-Term Debt & Capital Lease Obligation was C$111.6 Mil.
Net Income was 5.642 + 9.21 + 6.263 + 6.288 = C$27.4 Mil.
Non Operating Income was 0.056 + -0.003 + 0.082 + 0.057 = C$0.2 Mil.
Cash Flow from Operations was 12.861 + 17.575 + 23.737 + 6.035 = C$60.2 Mil.

Total Receivables was C$118.1 Mil.
Revenue was 139.093 + 140.411 + 129.25 + 119.303 = C$528.1 Mil.
Gross Profit was 28.72 + 28.082 + 26.294 + 23.104 = C$106.2 Mil.
Total Current Assets was C$246.3 Mil.
Total Assets was C$585.1 Mil.
Property, Plant and Equipment(Net PPE) was C$211.4 Mil.
Depreciation, Depletion and Amortization(DDA) was C$27.4 Mil.
Selling, General, & Admin. Expense(SGA) was C$47.5 Mil.
Total Current Liabilities was C$97.0 Mil.
Long-Term Debt & Capital Lease Obligation was C$112.0 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)
	=	(116.236 / 636.92)	/	(118.121 / 528.057)
	=	0.182497	/	0.22369
	=	0.8158

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)
	=	(106.2 / 528.057)	/	(134.706 / 636.92)
	=	0.201115	/	0.211496
	=	0.9509

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 - (253.861 + 227.237) / 603.483)	/	(1 - (246.334 + 211.413) / 585.124)
	=	0.202798	/	0.217692
	=	0.9316

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
	=	636.92	/	528.057
	=	1.2062

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))
	=	(27.36 / (27.36 + 211.413))	/	(32.897 / (32.897 + 227.237))
	=	0.114586	/	0.126462
	=	0.9061

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)
	=	(57.528 / 636.92)	/	(47.471 / 528.057)
	=	0.090322	/	0.089897
	=	1.0047

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)
	=	((111.558 + 97.118) / 603.483)	/	((112.047 + 96.964) / 585.124)
	=	0.345786	/	0.357208
	=	0.968

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
	=	(27.403 - 0.192	-	60.208)	/	603.483
	=	-0.054678

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.

Exco Technologies has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Exco Technologies Beneish M-Score Related Terms

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Exco Technologies (TSX:XTC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Exco Technologies Ltd (TSX:XTC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

EXCOF:USA 3XT:Germany

Address

130 Spy Court, 2nd Floor, Markham, ON, CAN, L3R 5H6

Website

https://www.excocorp.com

Exco Technologies Ltd is a designer, developer, and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. The company reports in two business segments namely, the Casting and Extrusion segment and Automotive Solutions segment. It generates maximum revenue from the Automotive Solutions segment. The Automotive Solutions segment produces automotive interior components and assemblies for seating, cargo storage, and restraint for sale to automotive manufacturers and Tier 1 suppliers. Geographically, it derives a majority of its revenue from the United States and also has its presence in Canada, Europe, Asia and other regions.

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