Eddy Smart Home Solutions (TSXV:EDY) Beneish M-Score : -2.43 (As of Mar. 27, 2025)

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What is Eddy Smart Home Solutions 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Eddy Smart Home Solutions's Beneish M-Score or its related term are showing as below:

TSXV:EDY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.83 Med: -2.82 Max: 2.47
Current: -2.43

During the past 4 years, the highest Beneish M-Score of Eddy Smart Home Solutions was 2.47. The lowest was -4.83. And the median was -2.82.

Eddy Smart Home Solutions Beneish M-Score Historical Data

The historical data trend for Eddy Smart Home Solutions'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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Eddy Smart Home Solutions Beneish M-Score Chart

Eddy Smart Home Solutions Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-4.83

Eddy Smart Home Solutions Quarterly Data
	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial									-2.56	-4.83	-3.85	-3.08	-2.43

Competitive Comparison of Eddy Smart Home Solutions's Beneish M-Score

For the Scientific & Technical Instruments subindustry, Eddy Smart Home Solutions'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.

Eddy Smart Home Solutions's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Eddy Smart Home Solutions's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Eddy Smart Home Solutions's Beneish M-Score falls into.

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Eddy Smart Home Solutions 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 Eddy Smart Home Solutions 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 * 1.6156

0.528 * 0.9849

0.404 * 1.9504

0.892 * 1.1657

0.115 * 0.1617

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.483

4.679 * -0.246258

0.327 * 0.6424

-2.43

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was C$1.84 Mil.
Revenue was 0.721 + 0.748 + 1.041 + 1.163 = C$3.67 Mil.
Gross Profit was 0.26 + 0.367 + 0.582 + 0.571 = C$1.78 Mil.
Total Current Assets was C$6.67 Mil.
Total Assets was C$12.43 Mil.
Property, Plant and Equipment(Net PPE) was C$0.09 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.43 Mil.
Selling, General, & Admin. Expense(SGA) was C$5.16 Mil.
Total Current Liabilities was C$6.98 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.
Net Income was -0.932 + -1.313 + -0.473 + -4.404 = C$-7.12 Mil.
Non Operating Income was 0.01 + -0.013 + -0.021 + -2.978 = C$-3.00 Mil.
Cash Flow from Operations was -0.644 + -0.081 + -0.802 + 0.467 = C$-1.06 Mil.

Total Receivables was C$0.98 Mil.
Revenue was 0.763 + 0.54 + 0.942 + 0.906 = C$3.15 Mil.
Gross Profit was 0.303 + 0.169 + 0.395 + 0.637 = C$1.50 Mil.
Total Current Assets was C$6.41 Mil.
Total Assets was C$14.42 Mil.
Property, Plant and Equipment(Net PPE) was C$4.63 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.71 Mil.
Selling, General, & Admin. Expense(SGA) was C$9.16 Mil.
Total Current Liabilities was C$12.20 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.40 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)
	=	(1.838 / 3.673)	/	(0.976 / 3.151)
	=	0.500408	/	0.309743
	=	1.6156

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)
	=	(1.504 / 3.151)	/	(1.78 / 3.673)
	=	0.477309	/	0.484617
	=	0.9849

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 - (6.668 + 0.094) / 12.426)	/	(1 - (6.414 + 4.633) / 14.416)
	=	0.455818	/	0.233699
	=	1.9504

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
	=	3.673	/	3.151
	=	1.1657

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))
	=	(0.709 / (0.709 + 4.633))	/	(0.43 / (0.43 + 0.094))
	=	0.132722	/	0.820611
	=	0.1617

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)
	=	(5.156 / 3.673)	/	(9.157 / 3.151)
	=	1.403757	/	2.906062
	=	0.483

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 + 6.98) / 12.426)	/	((0.404 + 12.202) / 14.416)
	=	0.561725	/	0.874445
	=	0.6424

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
	=	(-7.122 - -3.002	-	-1.06)	/	12.426
	=	-0.246258

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.

Eddy Smart Home Solutions has a M-score of -2.43 suggests that the company is unlikely to be a manipulator.

Eddy Smart Home Solutions Beneish M-Score Related Terms

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Eddy Smart Home Solutions Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Eddy Smart Home Solutions Ltd (TSXV:EDY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5255 Yonge Street, Suite 900, Toronto, ON, CAN, M2N 6P4

Website

https://www.eddysolutions.com

Eddy Smart Home Solutions Ltd is a provider and developer of residential and commercial smart water metering products and monitoring services. It helps property owners to protect, control, and conserve water usage by combining water-sensing devices with behavioral learning software. The Company operates in three operating segments, which are multi-family residences (MFR), single family residences (SFR) and customer & industrial (C&I). The company's revenue is generated from customers in Canada and the USA.

Executives

Mark Silver	10% Security Holder, Director
Boris Baril	Senior Officer
Cory Silver	Senior Officer

Eddy Smart Home Solutions Headlines

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