LSL Pharma Group (TSXV:LSL) Beneish M-Score : -2.06 (As of Dec. 14, 2024)

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What is LSL Pharma Group 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 -2.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSXV:LSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32 Med: -2.32 Max: -1.81
Current: -2.06

During the past 4 years, the highest Beneish M-Score of LSL Pharma Group was -1.81. The lowest was -3.32. And the median was -2.32.

LSL Pharma Group Beneish M-Score Historical Data

The historical data trend for LSL Pharma Group'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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LSL Pharma Group Beneish M-Score Chart

LSL Pharma Group Annual Data

Trend

Sep20

Dec21

Dec22

Dec23

Beneish M-Score

-2.80

LSL Pharma Group Quarterly Data
	Sep20	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial										-3.32	-2.80	-2.32	-1.81	-2.06

Competitive Comparison of LSL Pharma Group's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, LSL Pharma Group'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.

LSL Pharma Group's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, LSL Pharma Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where LSL Pharma Group's Beneish M-Score falls into.

LSL Pharma Group 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 LSL Pharma Group 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 * 1.0825

0.528 * 0.1384

0.404 * 0.8184

0.892 * 1.786

0.115 * 1.1632

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4679

4.679 * -0.008352

0.327 * 0.6891

-2.06

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was C$3.39 Mil.
Revenue was 4.009 + 4.191 + 4.163 + 3.459 = C$15.82 Mil.
Gross Profit was 1.194 + 1.536 + 1.146 + 0.1 = C$3.98 Mil.
Total Current Assets was C$9.87 Mil.
Total Assets was C$37.96 Mil.
Property, Plant and Equipment(Net PPE) was C$18.93 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.28 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.21 Mil.
Total Current Liabilities was C$8.46 Mil.
Long-Term Debt & Capital Lease Obligation was C$9.09 Mil.
Net Income was -0.386 + -0.516 + -0.28 + -1.27 = C$-2.45 Mil.
Non Operating Income was 0.006 + 0.023 + 0 + -0.073 = C$-0.04 Mil.
Cash Flow from Operations was -0.087 + -0.107 + -1.91 + 0.013 = C$-2.09 Mil.

Total Receivables was C$1.76 Mil.
Revenue was 2.511 + 2.034 + 2.024 + 2.29 = C$8.86 Mil.
Gross Profit was 0.466 + 0.692 + 0.387 + -1.237 = C$0.31 Mil.
Total Current Assets was C$6.03 Mil.
Total Assets was C$29.65 Mil.
Property, Plant and Equipment(Net PPE) was C$14.88 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.18 Mil.
Selling, General, & Admin. Expense(SGA) was C$5.04 Mil.
Total Current Liabilities was C$14.24 Mil.
Long-Term Debt & Capital Lease Obligation was C$5.67 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)
	=	(3.393 / 15.822)	/	(1.755 / 8.859)
	=	0.214448	/	0.198104
	=	1.0825

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)
	=	(0.308 / 8.859)	/	(3.976 / 15.822)
	=	0.034767	/	0.251296
	=	0.1384

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 - (9.87 + 18.928) / 37.956)	/	(1 - (6.027 + 14.884) / 29.653)
	=	0.241279	/	0.29481
	=	0.8184

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
	=	15.822	/	8.859
	=	1.786

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))
	=	(1.182 / (1.182 + 14.884))	/	(1.278 / (1.278 + 18.928))
	=	0.073572	/	0.063249
	=	1.1632

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)
	=	(4.212 / 15.822)	/	(5.04 / 8.859)
	=	0.266212	/	0.568913
	=	0.4679

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)
	=	((9.091 + 8.463) / 37.956)	/	((5.667 + 14.235) / 29.653)
	=	0.462483	/	0.671163
	=	0.6891

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
	=	(-2.452 - -0.044	-	-2.091)	/	37.956
	=	-0.008352

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.

LSL Pharma Group has a M-score of -2.06 suggests that the company is unlikely to be a manipulator.

LSL Pharma Group Beneish M-Score Related Terms

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LSL Pharma Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » LSL Pharma Group Inc (TSXV:LSL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

540 d’Avaugour Street, Suite 1800, Boucherville, QC, CAN, J4B 0G6

Website

https://www.laboratoirelsl.com

LSL Pharma Group Inc integrated pharmaceutical company specializing in the development, manufacture and distribution of high-quality natural health products and dietary supplements in solid dosage forms as well as high quality sterile ophthalmic pharmaceutical products.

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