Esval (XSGO:ESVAL-C) Beneish M-Score : -2.79 (As of Jun. 18, 2024)

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What is Esval 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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSGO:ESVAL-C' s Beneish M-Score Range Over the Past 10 Years
Min: -5.85 Med: -2.7 Max: -2.16
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Esval was -2.16. The lowest was -5.85. And the median was -2.70.

Esval Beneish M-Score Historical Data

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

Esval Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.72

-2.63

-2.61

-2.87

Esval 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															-2.68	-2.76	-2.79	-2.87	-2.79

Competitive Comparison of Esval's Beneish M-Score

For the Utilities - Regulated Water subindustry, Esval'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.

Esval's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Esval's Beneish M-Score distribution charts can be found below:

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

Esval 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 Esval 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 * 1.0157

0.528 * 1.0048

0.404 * 1.0273

0.892 * 1.0529

0.115 * 0.9553

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9175

4.679 * -0.081848

0.327 * 1.0378

-2.79

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was CLP84,076 Mil.
Revenue was 81517.298 + 72636.997 + 63636.676 + 65782.643 = CLP283,574 Mil.
Gross Profit was 66212.97 + 58566.602 + 49819.828 + 52233.053 = CLP226,832 Mil.
Total Current Assets was CLP132,107 Mil.
Total Assets was CLP1,322,506 Mil.
Property, Plant and Equipment(Net PPE) was CLP869,220 Mil.
Depreciation, Depletion and Amortization(DDA) was CLP50,449 Mil.
Selling, General, & Admin. Expense(SGA) was CLP6,933 Mil.
Total Current Liabilities was CLP219,800 Mil.
Long-Term Debt & Capital Lease Obligation was CLP561,872 Mil.
Net Income was 14507.041 + 5639.92 + 6493.452 + 2730.023 = CLP29,370 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = CLP0 Mil.
Cash Flow from Operations was 43024.591 + 28031.645 + 30612.167 + 35946.109 = CLP137,615 Mil.

Total Receivables was CLP78,616 Mil.
Revenue was 80167.553 + 72442.08 + 59973.839 + 56736.9 = CLP269,320 Mil.
Gross Profit was 65261.648 + 60242.975 + 46776.176 + 44193.812 = CLP216,475 Mil.
Total Current Assets was CLP139,607 Mil.
Total Assets was CLP1,256,835 Mil.
Property, Plant and Equipment(Net PPE) was CLP820,124 Mil.
Depreciation, Depletion and Amortization(DDA) was CLP45,355 Mil.
Selling, General, & Admin. Expense(SGA) was CLP7,177 Mil.
Total Current Liabilities was CLP94,833 Mil.
Long-Term Debt & Capital Lease Obligation was CLP620,960 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)
	=	(84076.362 / 283573.614)	/	(78615.715 / 269320.372)
	=	0.296489	/	0.291904
	=	1.0157

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)
	=	(216474.611 / 269320.372)	/	(226832.453 / 283573.614)
	=	0.803781	/	0.799907
	=	1.0048

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 - (132107.473 + 869219.661) / 1322506.333)	/	(1 - (139606.692 + 820123.672) / 1256834.673)
	=	0.242856	/	0.236391
	=	1.0273

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
	=	283573.614	/	269320.372
	=	1.0529

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))
	=	(45354.903 / (45354.903 + 820123.672))	/	(50448.612 / (50448.612 + 869219.661))
	=	0.052404	/	0.054855
	=	0.9553

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)
	=	(6933.299 / 283573.614)	/	(7176.758 / 269320.372)
	=	0.02445	/	0.026648
	=	0.9175

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)
	=	((561871.992 + 219799.828) / 1322506.333)	/	((620960.05 + 94833.432) / 1256834.673)
	=	0.591053	/	0.569521
	=	1.0378

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
	=	(29370.436 - 0	-	137614.512)	/	1322506.333
	=	-0.081848

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.

Esval has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.

Esval Beneish M-Score Related Terms

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Esval (XSGO:ESVAL-C) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Esval SA (XSGO:ESVAL-C) » Definitions » Beneish M-Score

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ESVAL-A:Chile

Address

Cochrane No. 751, Valparaiso, CHL

Website

http://www.esval.cl

Esval SA is a Chile based company engaged in the business of distribution and supply of drinking water in the provinces of Valparaiso, Petorca, San Antonio, San Felipe and Los Andes. It is also engaged in collection, treatment, and disposal of wastewater.

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