Eddy Smart Home Solutions (TSXV:EDY) Beneish M-Score : -3.82 (As of Jun. 25, 2024)

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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 -3.82 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: -4.79 Med: -3.24 Max: 2.47
Current: -3.82

During the past 4 years, the highest Beneish M-Score of Eddy Smart Home Solutions was 2.47. The lowest was -4.79. And the median was -3.24.

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

-4.79

Eddy Smart Home Solutions Quarterly Data
	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial							-	2.47	-2.66	-4.79	-3.82

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.

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 * 1.1761

0.528 * 1.1601

0.404 * 1.7995

0.892 * 1.1357

0.115 * 0.1576

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4753

4.679 * -0.384328

0.327 * 1.6828

-3.82

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$1.94 Mil.
Revenue was 1.041 + 1.163 + 0.763 + 0.54 = C$3.51 Mil.
Gross Profit was 0.582 + 0.571 + 0.303 + 0.169 = C$1.63 Mil.
Total Current Assets was C$6.38 Mil.
Total Assets was C$11.23 Mil.
Property, Plant and Equipment(Net PPE) was C$0.11 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.70 Mil.
Selling, General, & Admin. Expense(SGA) was C$5.87 Mil.
Total Current Liabilities was C$12.80 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.
Net Income was -0.473 + -4.404 + -1.982 + -2.13 = C$-8.99 Mil.
Non Operating Income was -0.021 + -3.353 + -0.016 + 0.005 = C$-3.39 Mil.
Cash Flow from Operations was -0.802 + 0.468 + -0.343 + -0.611 = C$-1.29 Mil.

Total Receivables was C$1.45 Mil.
Revenue was 0.942 + 0.906 + 0.694 + 0.546 = C$3.09 Mil.
Gross Profit was 0.395 + 0.637 + 0.341 + 0.287 = C$1.66 Mil.
Total Current Assets was C$7.55 Mil.
Total Assets was C$15.19 Mil.
Property, Plant and Equipment(Net PPE) was C$4.07 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.64 Mil.
Selling, General, & Admin. Expense(SGA) was C$10.88 Mil.
Total Current Liabilities was C$9.81 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.48 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)
	=	(1.942 / 3.507)	/	(1.454 / 3.088)
	=	0.55375	/	0.470855
	=	1.1761

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)
	=	(1.66 / 3.088)	/	(1.625 / 3.507)
	=	0.537565	/	0.463359
	=	1.1601

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 - (6.378 + 0.112) / 11.23)	/	(1 - (7.552 + 4.072) / 15.186)
	=	0.422084	/	0.234558
	=	1.7995

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
	=	3.507	/	3.088
	=	1.1357

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))
	=	(0.64 / (0.64 + 4.072))	/	(0.697 / (0.697 + 0.112))
	=	0.135823	/	0.861557
	=	0.1576

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)
	=	(5.874 / 3.507)	/	(10.882 / 3.088)
	=	1.674936	/	3.523964
	=	0.4753

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 + 12.8) / 11.23)	/	((0.475 + 9.811) / 15.186)
	=	1.139804	/	0.677334
	=	1.6828

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
	=	(-8.989 - -3.385	-	-1.288)	/	11.23
	=	-0.384328

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 -3.82 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 (TSXV:EDY) 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

ESHSF:USA

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 based on the Company's organizational structure and how the information is reported internally on a regular basis. geographically the majority of revenues come from Canada.

Executives

Cory Silver

Senior Officer

Eddy Smart Home Solutions (TSXV:EDY) Headlines

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