Castro Model (XTAE:CAST) Beneish M-Score : -2.51 (As of Jun. 25, 2024)

View and export this data going back to 1992. Start your Free Trial

What is Castro Model 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XTAE:CAST' s Beneish M-Score Range Over the Past 10 Years
Min: -7.71 Med: -2.65 Max: -0.65
Current: -2.51

During the past 10 years, the highest Beneish M-Score of Castro Model was -0.65. The lowest was -7.71. And the median was -2.65.

Castro Model Beneish M-Score Historical Data

The historical data trend for Castro Model'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.

Castro Model Beneish M-Score Chart

Castro Model Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.32

-2.35

-2.23

-2.63

-2.33

Castro Model 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															-2.62	-2.77	-2.65	-2.33	-2.51

Competitive Comparison of Castro Model's Beneish M-Score

For the Apparel Retail subindustry, Castro Model'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.

Castro Model's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Castro Model's Beneish M-Score distribution charts can be found below:

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

Castro Model 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 Castro Model 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 * 0.9873

0.528 * 0.9561

0.404 * 0.9795

0.892 * 1.0392

0.115 * 1.0876

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5427

4.679 * -0.025521

0.327 * 0.9599

-2.51

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₪120 Mil.
Revenue was 434.627 + 471.62 + 453.668 + 459.055 = ₪1,819 Mil.
Gross Profit was 231.654 + 264.84 + 262.422 + 277.255 = ₪1,036 Mil.
Total Current Assets was ₪730 Mil.
Total Assets was ₪2,094 Mil.
Property, Plant and Equipment(Net PPE) was ₪1,161 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪95 Mil.
Selling, General, & Admin. Expense(SGA) was ₪82 Mil.
Total Current Liabilities was ₪455 Mil.
Long-Term Debt & Capital Lease Obligation was ₪1,017 Mil.
Net Income was 3.909 + 28.152 + 12.775 + 33.502 = ₪78 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₪0 Mil.
Cash Flow from Operations was 60.392 + -33.976 + 0.169 + 105.205 = ₪132 Mil.

Total Receivables was ₪117 Mil.
Revenue was 380.186 + 470.307 + 429.928 + 469.859 = ₪1,750 Mil.
Gross Profit was 183.01 + 239.281 + 250.501 + 280.461 = ₪953 Mil.
Total Current Assets was ₪722 Mil.
Total Assets was ₪2,023 Mil.
Property, Plant and Equipment(Net PPE) was ₪1,100 Mil.
Depreciation, Depletion and Amortization(DDA) was ₪99 Mil.
Selling, General, & Admin. Expense(SGA) was ₪145 Mil.
Total Current Liabilities was ₪522 Mil.
Long-Term Debt & Capital Lease Obligation was ₪959 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)
	=	(119.595 / 1818.97)	/	(116.56 / 1750.28)
	=	0.065749	/	0.066595
	=	0.9873

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)
	=	(953.253 / 1750.28)	/	(1036.171 / 1818.97)
	=	0.544629	/	0.569647
	=	0.9561

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 - (729.528 + 1161.113) / 2094.442)	/	(1 - (721.884 + 1100.041) / 2022.892)
	=	0.097306	/	0.099346
	=	0.9795

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
	=	1818.97	/	1750.28
	=	1.0392

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))
	=	(98.66 / (98.66 + 1100.041))	/	(95.065 / (95.065 + 1161.113))
	=	0.082306	/	0.075678
	=	1.0876

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)
	=	(81.732 / 1818.97)	/	(144.916 / 1750.28)
	=	0.044933	/	0.082796
	=	0.5427

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)
	=	((1016.565 + 454.951) / 2094.442)	/	((958.925 + 521.686) / 2022.892)
	=	0.702581	/	0.731928
	=	0.9599

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
	=	(78.338 - 0	-	131.79)	/	2094.442
	=	-0.025521

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.

Castro Model has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.

Castro Model Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Castro Model's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Castro Model (XTAE:CAST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Castro Model Ltd (XTAE:CAST) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

35 Ben Zvi Road, Tel Aviv, ISR, 68103

Website

https://www.castro.com

Castro Model Ltd designs, manufactures, and distributes fashion wear for men, women, girls, boys and baby in Israel. The company has three segments which include: the Red line for casual fashion, the Black line, a smart, sophisticated and elegant line and the Blue line, a line of jeans. It also offers complementary collections such as shoes and bags, glasses, lingerie, jewelry and even bicycles and other accessories. The company involves in the retail marketing of fashion products through branded stores operated by subsidiaries in Israel.