Seohee Construction Co (XKRX:035890) Beneish M-Score : -2.47 (As of Dec. 13, 2024)

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What is Seohee Construction Co 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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:035890' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67 Med: -2.55 Max: -1.88
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Seohee Construction Co was -1.88. The lowest was -3.67. And the median was -2.55.

Seohee Construction Co Beneish M-Score Historical Data

The historical data trend for Seohee Construction Co'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.

Seohee Construction Co Beneish M-Score Chart

Seohee Construction Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.11

-2.98

-2.78

-2.44

-2.31

Seohee Construction Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.11	-2.31	-1.88	-2.31	-2.47

Competitive Comparison of Seohee Construction Co's Beneish M-Score

For the Engineering & Construction subindustry, Seohee Construction Co'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.

Seohee Construction Co's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Seohee Construction Co's Beneish M-Score distribution charts can be found below:

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

Seohee Construction Co 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 Seohee Construction Co 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 * 1.0092

0.528 * 0.7645

0.404 * 1.0118

0.892 * 1.1106

0.115 * 1.382

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8663

4.679 * -0.013854

0.327 * 0.9285

-2.47

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ₩572,839 Mil.
Revenue was 341371.736 + 407558.893 + 364784.617 + 419304.704 = ₩1,533,020 Mil.
Gross Profit was 87233.305 + 74572.134 + 70711.802 + 114942.935 = ₩347,460 Mil.
Total Current Assets was ₩1,023,320 Mil.
Total Assets was ₩1,611,237 Mil.
Property, Plant and Equipment(Net PPE) was ₩88,752 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩18,467 Mil.
Selling, General, & Admin. Expense(SGA) was ₩16,379 Mil.
Total Current Liabilities was ₩557,501 Mil.
Long-Term Debt & Capital Lease Obligation was ₩28,894 Mil.
Net Income was 33310.078 + 23075.106 + 67045.335 + 41252.42 = ₩164,683 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was -7546.346 + 124612.786 + -59274.555 + 129213.155 = ₩187,005 Mil.

Total Receivables was ₩511,094 Mil.
Revenue was 365214.232 + 346278.373 + 311110.44 + 357766.446 = ₩1,380,369 Mil.
Gross Profit was 58822.325 + 52997.475 + 63590.056 + 63783.458 = ₩239,193 Mil.
Total Current Assets was ₩925,929 Mil.
Total Assets was ₩1,497,073 Mil.
Property, Plant and Equipment(Net PPE) was ₩112,744 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩35,220 Mil.
Selling, General, & Admin. Expense(SGA) was ₩17,024 Mil.
Total Current Liabilities was ₩539,145 Mil.
Long-Term Debt & Capital Lease Obligation was ₩47,687 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)
	=	(572838.816 / 1533019.95)	/	(511094.028 / 1380369.491)
	=	0.373667	/	0.370259
	=	1.0092

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)
	=	(239193.314 / 1380369.491)	/	(347460.176 / 1533019.95)
	=	0.173282	/	0.226651
	=	0.7645

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 - (1023319.659 + 88751.838) / 1611236.918)	/	(1 - (925928.504 + 112744.295) / 1497072.706)
	=	0.309803	/	0.306197
	=	1.0118

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
	=	1533019.95	/	1380369.491
	=	1.1106

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))
	=	(35220.377 / (35220.377 + 112744.295))	/	(18466.706 / (18466.706 + 88751.838))
	=	0.238032	/	0.172234
	=	1.382

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)
	=	(16379.385 / 1533019.95)	/	(17024.374 / 1380369.491)
	=	0.010684	/	0.012333
	=	0.8663

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)
	=	((28893.975 + 557500.691) / 1611236.918)	/	((47686.624 + 539145.026) / 1497072.706)
	=	0.363941	/	0.391986
	=	0.9285

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
	=	(164682.939 - 0	-	187005.04)	/	1611236.918
	=	-0.013854

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.

Seohee Construction Co has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Seohee Construction Co Beneish M-Score Related Terms

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Seohee Construction Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Seohee Construction Co Ltd (XKRX:035890) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

South Ring Road 2583, Seo-hee Towers 13 Stories, Seocho-gu, Seocho-dong, Seoul, KOR

Website

http://www.seohee.co.kr

Seohee Construction Co Ltd operates as a construction company primarily in South Korea. It primarily undertakes housing, enforcement, redevelopment, reconstruction, officetels, public apartment, civil engineering, and environment projects, as well as other private contracts. It also invests in environment conservation and environmental projects for the development of new and renewable energy.

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