Sevenet (WAR:SEV) Beneish M-Score : -2.99 (As of Mar. 28, 2025)

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What is Sevenet 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 -2.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:SEV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72 Med: -2.22 Max: 1.34
Current: -2.99

During the past 12 years, the highest Beneish M-Score of Sevenet was 1.34. The lowest was -3.72. And the median was -2.22.

Sevenet Beneish M-Score Historical Data

The historical data trend for Sevenet'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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Sevenet Beneish M-Score Chart

Sevenet Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

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-2.94

-2.54

-1.15

-1.60

-2.22

Sevenet Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.08	-2.17	-2.21	-2.47	-2.99

Competitive Comparison of Sevenet's Beneish M-Score

For the Information Technology Services subindustry, Sevenet'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.

Sevenet's Beneish M-Score Distribution in the Software Industry

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

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

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Sevenet 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 Sevenet 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 * 0.9806

0.528 * 0.8313

0.404 * 1.1283

0.892 * 1.0344

0.115 * 1.1314

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4274

4.679 * -0.137076

0.327 * 0.8578

-2.99

This Year (Dec24) TTM:

Last Year (Sep23) TTM:

Total Receivables was zł55.9 Mil.
Revenue was 48.666 + 31.986 + 28.503 + 39.246 = zł148.4 Mil.
Gross Profit was 25.191 + 17.743 + 15.834 + 20.144 = zł78.9 Mil.
Total Current Assets was zł75.5 Mil.
Total Assets was zł157.5 Mil.
Property, Plant and Equipment(Net PPE) was zł7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1.6 Mil.
Selling, General, & Admin. Expense(SGA) was zł16.7 Mil.
Total Current Liabilities was zł51.8 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.0 Mil.
Net Income was 2.153 + -1.646 + 0.051 + 2.251 = zł2.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.0 Mil.
Cash Flow from Operations was 4.5 + 0.671 + 4.435 + 14.792 = zł24.4 Mil.

Total Receivables was zł55.1 Mil.
Revenue was 36.302 + 45.104 + 23.319 + 38.744 = zł143.5 Mil.
Gross Profit was 15.845 + 16.2 + 9.442 + 21.936 = zł63.4 Mil.
Total Current Assets was zł68.7 Mil.
Total Assets was zł126.7 Mil.
Property, Plant and Equipment(Net PPE) was zł5.0 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1.3 Mil.
Selling, General, & Admin. Expense(SGA) was zł37.8 Mil.
Total Current Liabilities was zł46.7 Mil.
Long-Term Debt & Capital Lease Obligation was zł2.0 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)
	=	(55.859 / 148.401)	/	(55.069 / 143.469)
	=	0.376406	/	0.383839
	=	0.9806

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)
	=	(63.423 / 143.469)	/	(78.912 / 148.401)
	=	0.442068	/	0.531748
	=	0.8313

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 - (75.505 + 7.646) / 157.496)	/	(1 - (68.678 + 5.035) / 126.736)
	=	0.472044	/	0.418374
	=	1.1283

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
	=	148.401	/	143.469
	=	1.0344

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))
	=	(1.262 / (1.262 + 5.035))	/	(1.646 / (1.646 + 7.646))
	=	0.200413	/	0.177142
	=	1.1314

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)
	=	(16.722 / 148.401)	/	(37.822 / 143.469)
	=	0.112681	/	0.263625
	=	0.4274

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 + 51.847) / 157.496)	/	((1.95 + 46.69) / 126.736)
	=	0.329196	/	0.38379
	=	0.8578

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
	=	(2.809 - 0	-	24.398)	/	157.496
	=	-0.137076

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.

Sevenet has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

Sevenet Beneish M-Score Related Terms

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Sevenet Business Description

Industry

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Address

Ulica Galaktyczna 30A, Gdansk, POL, 80-299

Website

http://sevenet.pl

Sevenet SA provides contact call centre solutions for businesses and institutions in Poland. The company's business lines include Access to the network, Business Communication Systems, Contact Center Systems, Data Center, Data Safety and Communication without barriers.