MRV Engenharia e Participacoes (BSP:MRVE3) Beneish M-Score : -2.36 (As of May. 21, 2024)

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What is MRV Engenharia e Participacoes 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:MRVE3' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21 Med: -2.31 Max: -1.67
Current: -2.36

During the past 13 years, the highest Beneish M-Score of MRV Engenharia e Participacoes was -1.67. The lowest was -3.21. And the median was -2.31.

MRV Engenharia e Participacoes Beneish M-Score Historical Data

The historical data trend for MRV Engenharia e Participacoes'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.

MRV Engenharia e Participacoes Beneish M-Score Chart

MRV Engenharia e Participacoes Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.05

-2.26

-1.92

-2.20

-2.34

MRV Engenharia e Participacoes 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															-2.26	-2.26	-2.42	-2.34	-2.36

Competitive Comparison of MRV Engenharia e Participacoes's Beneish M-Score

For the Residential Construction subindustry, MRV Engenharia e Participacoes'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.

MRV Engenharia e Participacoes's Beneish M-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, MRV Engenharia e Participacoes's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where MRV Engenharia e Participacoes's Beneish M-Score falls into.

MRV Engenharia e Participacoes 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 MRV Engenharia e Participacoes 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 * 0.9747

0.528 * 0.8416

0.404 * 1.0571

0.892 * 1.148

0.115 * 1.871

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1865

4.679 * -0.001634

0.327 * 0.9502

-2.36

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$2,994 Mil.
Revenue was 1905.425 + 1940.76 + 1973.612 + 1825.658 = R$7,645 Mil.
Gross Profit was 493.239 + 467.94 + 460.583 + 405.202 = R$1,827 Mil.
Total Current Assets was R$12,420 Mil.
Total Assets was R$25,923 Mil.
Property, Plant and Equipment(Net PPE) was R$1,010 Mil.
Depreciation, Depletion and Amortization(DDA) was R$108 Mil.
Selling, General, & Admin. Expense(SGA) was R$440 Mil.
Total Current Liabilities was R$6,479 Mil.
Long-Term Debt & Capital Lease Obligation was R$6,167 Mil.
Net Income was -169.299 + -104.963 + -136.527 + 181.098 = R$-230 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -352.29 + 371.798 + 0 + -206.85 = R$-187 Mil.

Total Receivables was R$2,676 Mil.
Revenue was 1689.885 + 1673.685 + 1694.859 + 1601.64 = R$6,660 Mil.
Gross Profit was 353.453 + 347.142 + 327.711 + 311.025 = R$1,339 Mil.
Total Current Assets was R$11,569 Mil.
Total Assets was R$22,740 Mil.
Property, Plant and Equipment(Net PPE) was R$804 Mil.
Depreciation, Depletion and Amortization(DDA) was R$177 Mil.
Selling, General, & Admin. Expense(SGA) was R$323 Mil.
Total Current Liabilities was R$5,916 Mil.
Long-Term Debt & Capital Lease Obligation was R$5,758 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)
	=	(2993.718 / 7645.455)	/	(2675.555 / 6660.069)
	=	0.391568	/	0.401731
	=	0.9747

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)
	=	(1339.331 / 6660.069)	/	(1826.964 / 7645.455)
	=	0.201099	/	0.238961
	=	0.8416

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 - (12420.266 + 1009.871) / 25922.629)	/	(1 - (11568.622 + 803.989) / 22739.681)
	=	0.481915	/	0.455902
	=	1.0571

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
	=	7645.455	/	6660.069
	=	1.148

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))
	=	(176.916 / (176.916 + 803.989))	/	(107.736 / (107.736 + 1009.871))
	=	0.18036	/	0.096399
	=	1.871

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)
	=	(440.094 / 7645.455)	/	(323.127 / 6660.069)
	=	0.057563	/	0.048517
	=	1.1865

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)
	=	((6166.617 + 6478.901) / 25922.629)	/	((5757.74 + 5916.303) / 22739.681)
	=	0.487818	/	0.513378
	=	0.9502

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
	=	(-229.691 - 0	-	-187.342)	/	25922.629
	=	-0.001634

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.

MRV Engenharia e Participacoes has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

MRV Engenharia e Participacoes Beneish M-Score Related Terms

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MRV Engenharia e Participacoes (BSP:MRVE3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » MRV Engenharia e Participacoes SA (BSP:MRVE3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Professor Mario Werneck Avenida, 621, Estoril, 1st Floor, Belo Horizonte, MG, BRA, 30455-610

Website

https://www.mrv.com.br

MRV Engenharia e Participacoes SA is engaged in the management of own and third-party assets, development, construction and sale of Company-owned or third-party real estate, the provision of technical engineering services related to the functions of the technicians in charge, real estate consultancy services, dealing service of goods and services supply in residential real estate segment and holding equity interests in other companies as a shareholder. Real estate development and the construction of real estate are performed directly by the Company or other business partners. The operating segments of the company are Real estate development, Rental of residential properties and Urban land subdivisions. The rental of residential properties segment is split in United States (USA) and Brazil.

MRV Engenharia e Participacoes (BSP:MRVE3) Headlines

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