LGMS Bhd (XKLS:0249) Beneish M-Score : -1.40 (As of Apr. 08, 2025)

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What is LGMS Bhd 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 -1.4 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XKLS:0249' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18 Med: -2.07 Max: -1.36
Current: -1.4

During the past 7 years, the highest Beneish M-Score of LGMS Bhd was -1.36. The lowest was -3.18. And the median was -2.07.

LGMS Bhd Beneish M-Score Historical Data

The historical data trend for LGMS Bhd'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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LGMS Bhd Beneish M-Score Chart

LGMS Bhd Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.18

-2.07

-1.36

-2.27

-1.40

LGMS Bhd Quarterly Data
	Dec18	Dec19	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial											-2.27	-	-	-	-1.40

Competitive Comparison of LGMS Bhd's Beneish M-Score

For the Information Technology Services subindustry, LGMS Bhd'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.

LGMS Bhd's Beneish M-Score Distribution in the Software Industry

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

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

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LGMS Bhd 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 LGMS Bhd 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 * 1.3117

0.528 * 1.1724

0.404 * 0.9449

0.892 * 1.2742

0.115 * 5.9743

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.005725

0.327 * 1.1994

-1.40

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was RM13.55 Mil.
Revenue was RM43.63 Mil.
Gross Profit was RM19.51 Mil.
Total Current Assets was RM82.17 Mil.
Total Assets was RM106.37 Mil.
Property, Plant and Equipment(Net PPE) was RM17.20 Mil.
Depreciation, Depletion and Amortization(DDA) was RM1.06 Mil.
Selling, General, & Admin. Expense(SGA) was RM0.00 Mil.
Total Current Liabilities was RM11.35 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.55 Mil.
Net Income was RM12.34 Mil.
Gross Profit was RM0.00 Mil.
Cash Flow from Operations was RM12.95 Mil.

Total Receivables was RM8.11 Mil.
Revenue was RM34.24 Mil.
Gross Profit was RM17.95 Mil.
Total Current Assets was RM86.42 Mil.
Total Assets was RM95.67 Mil.
Property, Plant and Equipment(Net PPE) was RM2.59 Mil.
Depreciation, Depletion and Amortization(DDA) was RM1.38 Mil.
Selling, General, & Admin. Expense(SGA) was RM0.00 Mil.
Total Current Liabilities was RM8.57 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.35 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)
	=	(13.554 / 43.63)	/	(8.11 / 34.242)
	=	0.310658	/	0.236844
	=	1.3117

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)
	=	(17.951 / 34.242)	/	(19.51 / 43.63)
	=	0.524239	/	0.447169
	=	1.1724

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 - (82.171 + 17.199) / 106.373)	/	(1 - (86.422 + 2.586) / 95.674)
	=	0.065834	/	0.069674
	=	0.9449

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
	=	43.63	/	34.242
	=	1.2742

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))
	=	(1.375 / (1.375 + 2.586))	/	(1.061 / (1.061 + 17.199))
	=	0.347135	/	0.058105
	=	5.9743

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)
	=	(0 / 43.63)	/	(0 / 34.242)
	=	0	/	0
	=	1

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)
	=	((0.552 + 11.35) / 106.373)	/	((0.352 + 8.573) / 95.674)
	=	0.111889	/	0.093286
	=	1.1994

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
	=	(12.34 - 0	-	12.949)	/	106.373
	=	-0.005725

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.

LGMS Bhd has a M-score of -1.40 signals that the company is likely to be a manipulator.

LGMS Bhd Beneish M-Score Related Terms

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LGMS Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » LGMS Bhd (XKLS:0249) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Jalan SS 16/1, A-11-01, Empire Office Tower, Selangor Darul Ehsan, Subang Jaya, SGR, MYS, 47500

Website

https://www.lgms.global

LGMS Bhd is an independent provider of professional cybersecurity services involved in cybersecurity assessment and penetration testing, cyber risk management and compliance services as well as cyber threat and incident response services. It has three segments Cyber risk prevention Involved in the provision of security vulnerability assessment and penetration testing, training, and risk scoring; Cyber risk management and compliance Involved in the provision of cybersecurity advisory, certification, and compliance services; and Cyber threat and incident response Involved in the provision of digital forensics and computer crime investigations, cybersecurity incident response and compromise assessment. It generates revenue from Cyber risk prevention.

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