Hampton Financial (TSXV:HFC) Beneish M-Score : -1.10 (As of Apr. 28, 2024)

View and export this data going back to 2015. Start your Free Trial

What is Hampton Financial 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.

Warning Sign:

Beneish M-Score -1.1 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSXV:HFC' s Beneish M-Score Range Over the Past 10 Years
Min: -4 Med: -2.17 Max: 35.61
Current: -1.1

During the past 9 years, the highest Beneish M-Score of Hampton Financial was 35.61. The lowest was -4.00. And the median was -2.17.

Hampton Financial Beneish M-Score Historical Data

The historical data trend for Hampton Financial'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.

Hampton Financial Beneish M-Score Chart

Hampton Financial Annual Data

Trend

Jun15

Jun16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Beneish M-Score

Get a 7-Day Free Trial

12.39

-2.99

-2.42

-3.10

0.22

Hampton Financial Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Beneish M-Score	Get a 7-Day Free Trial															-3.05	-2.17	-2.47	0.22	-1.10

Competitive Comparison of Hampton Financial's Beneish M-Score

For the Capital Markets subindustry, Hampton Financial'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.

Hampton Financial's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Hampton Financial's Beneish M-Score distribution charts can be found below:

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

Hampton Financial 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 Hampton Financial 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 * 2.5107

0.528 * 2.83

0.404 * 0.9561

0.892 * 0.521

0.115 * 0.8648

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7734

4.679 * -0.065398

0.327 * 1.2462

-1.10

This Year (Nov23) TTM:

Last Year (Nov22) TTM:

Total Receivables was C$3.72 Mil.
Revenue was 1.232 + 2.76 + 1.184 + 1.415 = C$6.59 Mil.
Gross Profit was 0.126 + 1.496 + -0.415 + -0.346 = C$0.86 Mil.
Total Current Assets was C$8.14 Mil.
Total Assets was C$12.51 Mil.
Property, Plant and Equipment(Net PPE) was C$1.25 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.16 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.01 Mil.
Total Current Liabilities was C$4.41 Mil.
Long-Term Debt & Capital Lease Obligation was C$11.97 Mil.
Net Income was -0.563 + -0.405 + -1.023 + -0.904 = C$-2.90 Mil.
Non Operating Income was 0.058 + -1.06 + 0.195 + 0.469 = C$-0.34 Mil.
Cash Flow from Operations was 0.051 + 0.693 + -0.069 + -2.414 = C$-1.74 Mil.

Total Receivables was C$2.85 Mil.
Revenue was 1.363 + 7.515 + 2.15 + 1.623 = C$12.65 Mil.
Gross Profit was -0.055 + 5.976 + -1.092 + -0.152 = C$4.68 Mil.
Total Current Assets was C$11.69 Mil.
Total Assets was C$17.67 Mil.
Property, Plant and Equipment(Net PPE) was C$1.36 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.15 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.34 Mil.
Total Current Liabilities was C$6.61 Mil.
Long-Term Debt & Capital Lease Obligation was C$11.95 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)
	=	(3.724 / 6.591)	/	(2.847 / 12.651)
	=	0.565013	/	0.225041
	=	2.5107

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)
	=	(4.677 / 12.651)	/	(0.861 / 6.591)
	=	0.369694	/	0.130633
	=	2.83

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 - (8.136 + 1.245) / 12.508)	/	(1 - (11.69 + 1.358) / 17.668)
	=	0.25	/	0.26149
	=	0.9561

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
	=	6.591	/	12.651
	=	0.521

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))
	=	(0.152 / (0.152 + 1.358))	/	(0.164 / (0.164 + 1.245))
	=	0.100662	/	0.116395
	=	0.8648

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)
	=	(4.007 / 6.591)	/	(4.337 / 12.651)
	=	0.60795	/	0.342819
	=	1.7734

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)
	=	((11.966 + 4.407) / 12.508)	/	((11.946 + 6.613) / 17.668)
	=	1.309002	/	1.05043
	=	1.2462

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
	=	(-2.895 - -0.338	-	-1.739)	/	12.508
	=	-0.065398

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.

Hampton Financial has a M-score of -1.10 signals that the company is likely to be a manipulator.

Hampton Financial Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Hampton Financial's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Hampton Financial (TSXV:HFC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Hampton Financial Corp (TSXV:HFC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

141 Adelaide Street West, Suite 1800, Toronto, ON, CAN, M5H 3L5

Website

http://www.hamptonsecurities.com

Hampton Financial Corp along with its subsidiaries operates as an investment dealer and provides investment advisory and brokerage services. It also offers wealth management services to retail and institutional clients. In addition, the company provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on a recognized securities exchange in Canada. The Company operates in only one business segment, namely investment advisory and brokerage services.

Hampton Financial (TSXV:HFC) Headlines

No Headlines