STEER Technologies (TSXV:STER) Beneish M-Score : -3.82 (As of Apr. 30, 2024)

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What is STEER Technologies 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 STEER Technologies's Beneish M-Score or its related term are showing as below:

TSXV:STER' s Beneish M-Score Range Over the Past 10 Years
Min: -54.37 Med: -2.18 Max: 9.16
Current: -3.82

During the past 5 years, the highest Beneish M-Score of STEER Technologies was 9.16. The lowest was -54.37. And the median was -2.18.

STEER Technologies Beneish M-Score Historical Data

The historical data trend for STEER Technologies'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.

STEER Technologies Beneish M-Score Chart

STEER Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

4.72

-1.27

-5.07

STEER Technologies Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.73	-5.07	-2.85	-3.67	-3.82

Competitive Comparison of STEER Technologies's Beneish M-Score

For the Software - Application subindustry, STEER Technologies'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.

STEER Technologies's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, STEER Technologies's Beneish M-Score distribution charts can be found below:

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

STEER Technologies 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 STEER Technologies 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 * 0.914

0.528 * 0.4466

0.404 * 3.072

0.892 * 0.9181

0.115 * 0.7757

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1589

4.679 * -0.379094

0.327 * 0.7241

-3.82

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was C$1.17 Mil.
Revenue was 0.884 + 1.007 + 15.229 + 29.138 = C$46.26 Mil.
Gross Profit was -0.575 + -0.811 + -0.205 + -2.784 = C$-4.38 Mil.
Total Current Assets was C$1.85 Mil.
Total Assets was C$47.38 Mil.
Property, Plant and Equipment(Net PPE) was C$13.65 Mil.
Depreciation, Depletion and Amortization(DDA) was C$5.87 Mil.
Selling, General, & Admin. Expense(SGA) was C$23.30 Mil.
Total Current Liabilities was C$11.74 Mil.
Long-Term Debt & Capital Lease Obligation was C$13.44 Mil.
Net Income was -5.133 + -3.95 + 30.3 + -17.482 = C$3.74 Mil.
Non Operating Income was -2.744 + 0.143 + 35.956 + -1.498 = C$31.86 Mil.
Cash Flow from Operations was -2.4 + -2.949 + -3.862 + -0.948 = C$-10.16 Mil.

Total Receivables was C$1.39 Mil.
Revenue was 14.292 + 15.049 + 10.735 + 10.31 = C$50.39 Mil.
Gross Profit was -0.403 + -0.264 + -1.011 + -0.45 = C$-2.13 Mil.
Total Current Assets was C$11.31 Mil.
Total Assets was C$38.88 Mil.
Property, Plant and Equipment(Net PPE) was C$19.06 Mil.
Depreciation, Depletion and Amortization(DDA) was C$5.80 Mil.
Selling, General, & Admin. Expense(SGA) was C$21.90 Mil.
Total Current Liabilities was C$12.77 Mil.
Long-Term Debt & Capital Lease Obligation was C$15.76 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)
	=	(1.168 / 46.258)	/	(1.392 / 50.386)
	=	0.02525	/	0.027627
	=	0.914

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)
	=	(-2.128 / 50.386)	/	(-4.375 / 46.258)
	=	-0.042234	/	-0.094578
	=	0.4466

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 - (1.848 + 13.646) / 47.384)	/	(1 - (11.305 + 19.058) / 38.881)
	=	0.673012	/	0.219079
	=	3.072

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
	=	46.258	/	50.386
	=	0.9181

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))
	=	(5.798 / (5.798 + 19.058))	/	(5.868 / (5.868 + 13.646))
	=	0.233264	/	0.300707
	=	0.7757

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)
	=	(23.298 / 46.258)	/	(21.897 / 50.386)
	=	0.503653	/	0.434585
	=	1.1589

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)
	=	((13.441 + 11.737) / 47.384)	/	((15.76 + 12.77) / 38.881)
	=	0.531361	/	0.733777
	=	0.7241

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
	=	(3.735 - 31.857	-	-10.159)	/	47.384
	=	-0.379094

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.

STEER Technologies has a M-score of -3.82 suggests that the company is unlikely to be a manipulator.

STEER Technologies Beneish M-Score Related Terms

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STEER Technologies (TSXV:STER) Business Description

Industry

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Traded in Other Exchanges

STEEF:USA H1Y:Germany

Address

44 East Beaver Creek Road, Unit 16, Richmond Hill, ON, CAN, L4B 1G8

Website

https://www.steeresg.com

STEER Technologies Inc is an integrated ESG technology platform that moves people and delivers things through subscription and on-demand services. The company's goal is to build a one-of-a-kind system that aggregates conscientious users and enables them to buy, sell, or invest with the same platform. STEER offerings generally fall into two categories namely subscription-based offerings led by its flagship electric vehicle subscription business, STEER EV, and on-demand services incorporating B2B marketplace, Delivery-as-a-Service (DaaS), and rideshare businesses. The company's platform is powered by EcoCRED, it's analytics and machine learning engine which seeks to capture, analyze, parse, and report on key data points to measure the carbon impact.