HB Global (XKLS:5187) Beneish M-Score : -7.29 (As of Jun. 16, 2024)

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What is HB Global 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 -7.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKLS:5187' s Beneish M-Score Range Over the Past 10 Years
Min: -108.27 Med: -2.89 Max: 40.33
Current: -7.29

During the past 13 years, the highest Beneish M-Score of HB Global was 40.33. The lowest was -108.27. And the median was -2.89.

HB Global Beneish M-Score Historical Data

The historical data trend for HB Global'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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HB Global Beneish M-Score Chart

HB Global Annual Data

Trend

Dec14

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Dec16

Dec17

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Dec19

Dec20

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Dec23

Beneish M-Score

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-2.84

-108.27

-2.49

-7.56

-9.36

HB Global Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-7.48	-7.26	-5.33	-9.36	-7.29

Competitive Comparison of HB Global's Beneish M-Score

For the Packaged Foods subindustry, HB Global'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.

HB Global's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, HB Global's Beneish M-Score distribution charts can be found below:

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

HB Global 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 HB Global 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 * 0.6008

0.528 * -5.1702

0.404 * 0.9802

0.892 * 1.0711

0.115 * 0.8925

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7548

4.679 * -0.254062

0.327 * 1.2516

-7.29

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was RM7.13 Mil.
Revenue was 11.825 + 15.523 + 12.407 + 12.254 = RM52.01 Mil.
Gross Profit was 0.367 + -1.378 + 0.502 + 1.371 = RM0.86 Mil.
Total Current Assets was RM10.88 Mil.
Total Assets was RM141.36 Mil.
Property, Plant and Equipment(Net PPE) was RM109.78 Mil.
Depreciation, Depletion and Amortization(DDA) was RM8.21 Mil.
Selling, General, & Admin. Expense(SGA) was RM14.30 Mil.
Total Current Liabilities was RM42.98 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.00 Mil.
Net Income was -2.996 + -18.734 + -2.984 + -2.285 = RM-27.00 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.00 Mil.
Cash Flow from Operations was 6.631 + 5.22 + -2.484 + -0.451 = RM8.92 Mil.

Total Receivables was RM11.08 Mil.
Revenue was 11.637 + 12.795 + 11.839 + 12.287 = RM48.56 Mil.
Gross Profit was 0.172 + -3.511 + -0.179 + -0.643 = RM-4.16 Mil.
Total Current Assets was RM19.64 Mil.
Total Assets was RM169.43 Mil.
Property, Plant and Equipment(Net PPE) was RM124.48 Mil.
Depreciation, Depletion and Amortization(DDA) was RM8.24 Mil.
Selling, General, & Admin. Expense(SGA) was RM17.69 Mil.
Total Current Liabilities was RM41.16 Mil.
Long-Term Debt & Capital Lease Obligation was RM0.00 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)
	=	(7.129 / 52.009)	/	(11.078 / 48.558)
	=	0.137072	/	0.22814
	=	0.6008

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)
	=	(-4.161 / 48.558)	/	(0.862 / 52.009)
	=	-0.085691	/	0.016574
	=	-5.1702

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 - (10.882 + 109.78) / 141.363)	/	(1 - (19.644 + 124.475) / 169.432)
	=	0.146439	/	0.149399
	=	0.9802

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
	=	52.009	/	48.558
	=	1.0711

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))
	=	(8.239 / (8.239 + 124.475))	/	(8.207 / (8.207 + 109.78))
	=	0.062081	/	0.069559
	=	0.8925

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)
	=	(14.304 / 52.009)	/	(17.694 / 48.558)
	=	0.275029	/	0.364389
	=	0.7548

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 + 42.981) / 141.363)	/	((0 + 41.158) / 169.432)
	=	0.304047	/	0.242918
	=	1.2516

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
	=	(-26.999 - 0	-	8.916)	/	141.363
	=	-0.254062

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.

HB Global has a M-score of -7.29 suggests that the company is unlikely to be a manipulator.

HB Global Beneish M-Score Related Terms

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HB Global (XKLS:5187) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » HB Global Ltd (XKLS:5187) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Weifang Road, Juxian Industry Garden, Shandong Province, Ju County, Rizhao City, CHN

Website

https://www.hbglob.com

HB Global Ltd is an investment holding company. The company and its subsidiaries are primarily a food processing company specializing in the production of a wide variety of ready-to-serve food. The group is organized into business units based on their products and has four reportable operating segments, Ready-to-Serve Food; Frozen Vegetables; Construction contract; and Others. Geographically, the group generates a majority of its revenue from China.

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