NEXE Innovations (TSXV:NEXE) Beneish M-Score : -1.74 (As of Apr. 30, 2024)

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What is NEXE Innovations 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 -1.74 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSXV:NEXE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.58 Med: -1.74 Max: -1.64
Current: -1.74

During the past 4 years, the highest Beneish M-Score of NEXE Innovations was -1.64. The lowest was -2.58. And the median was -1.74.

NEXE Innovations Beneish M-Score Historical Data

The historical data trend for NEXE Innovations'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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NEXE Innovations Beneish M-Score Chart

NEXE Innovations Annual Data

Trend

May20

May21

May22

May23

Beneish M-Score

-2.58

NEXE Innovations Quarterly Data
	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												-	-	-2.58	-1.64	-1.74

Competitive Comparison of NEXE Innovations's Beneish M-Score

For the Packaging & Containers subindustry, NEXE Innovations'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.

NEXE Innovations's Beneish M-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, NEXE Innovations's Beneish M-Score distribution charts can be found below:

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

NEXE Innovations 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 NEXE Innovations 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 * 0.5616

0.528 * 2.2185

0.404 * 1.1791

0.892 * 2.1429

0.115 * 0.7322

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4082

4.679 * -0.136298

0.327 * 1.0765

-1.74

This Year (Nov23) TTM:

Last Year (Nov22) TTM:

Total Receivables was C$2.33 Mil.
Revenue was 0.034 + 0.088 + 0.006 + 0.007 = C$0.14 Mil.
Gross Profit was -0.054 + -0.1 + -0.006 + -0.01 = C$-0.17 Mil.
Total Current Assets was C$18.19 Mil.
Total Assets was C$39.49 Mil.
Property, Plant and Equipment(Net PPE) was C$21.22 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.41 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.62 Mil.
Total Current Liabilities was C$2.77 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.48 Mil.
Net Income was -1.611 + -2.04 + -2.585 + -1.252 = C$-7.49 Mil.
Non Operating Income was -0.004 + -0.004 + -0.752 + -0.005 = C$-0.77 Mil.
Cash Flow from Operations was 0.061 + -0.355 + 1.723 + -2.77 = C$-1.34 Mil.

Total Receivables was C$1.93 Mil.
Revenue was 0.009 + 0.027 + 0.027 + 0 = C$0.06 Mil.
Gross Profit was -0.017 + -0.13 + -0.029 + 0 = C$-0.18 Mil.
Total Current Assets was C$28.98 Mil.
Total Assets was C$46.55 Mil.
Property, Plant and Equipment(Net PPE) was C$17.49 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.84 Mil.
Selling, General, & Admin. Expense(SGA) was C$5.28 Mil.
Total Current Liabilities was C$2.41 Mil.
Long-Term Debt & Capital Lease Obligation was C$1.15 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)
	=	(2.325 / 0.135)	/	(1.932 / 0.063)
	=	17.222222	/	30.666667
	=	0.5616

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)
	=	(-0.176 / 0.063)	/	(-0.17 / 0.135)
	=	-2.793651	/	-1.259259
	=	2.2185

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 - (18.189 + 21.219) / 39.487)	/	(1 - (28.983 + 17.491) / 46.553)
	=	0.002001	/	0.001697
	=	1.1791

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
	=	0.135	/	0.063
	=	2.1429

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))
	=	(0.835 / (0.835 + 17.491))	/	(1.408 / (1.408 + 21.219))
	=	0.045564	/	0.062227
	=	0.7322

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)
	=	(4.621 / 0.135)	/	(5.283 / 0.063)
	=	34.22963	/	83.857143
	=	0.4082

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)
	=	((0.479 + 2.767) / 39.487)	/	((1.147 + 2.408) / 46.553)
	=	0.082204	/	0.076365
	=	1.0765

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
	=	(-7.488 - -0.765	-	-1.341)	/	39.487
	=	-0.136298

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.

NEXE Innovations has a M-score of -1.74 signals that the company is likely to be a manipulator.

NEXE Innovations Beneish M-Score Related Terms

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NEXE Innovations (TSXV:NEXE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » NEXE Innovations Inc (TSXV:NEXE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NEXNF:USA NX5:Germany

Address

19355 22nd Avenue, Suite 109, Surrey, BC, CAN, V3Z3S6

Website

https://www.nexeinnovations.com

NEXE Innovations Inc is a plant-based compostable technology and materials manufacturing based in British Columbia, Canada. The Company has developed patented, fully compostable, plant-based, single-serve coffee pods for use in single-serve coffee machines. The NEXE Pod is fully compostable, single-use pod will offer the market an environmentally friendly alternative to the over billions of plastic and aluminum pod market.

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