Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Beneish M-Score : -3.25 (As of May. 04, 2024)

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What is Bezeq The Israeli Telecommunication 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 -3.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BZQIY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.42 Med: -3.33 Max: -2.93
Current: -3.25

During the past 13 years, the highest Beneish M-Score of Bezeq The Israeli Telecommunication was -2.93. The lowest was -4.42. And the median was -3.33.

Bezeq The Israeli Telecommunication Beneish M-Score Historical Data

The historical data trend for Bezeq The Israeli Telecommunication'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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Bezeq The Israeli Telecommunication Beneish M-Score Chart

Bezeq The Israeli Telecommunication Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.15

-3.40

-2.93

-3.48

-3.25

Bezeq The Israeli Telecommunication Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-3.48	-3.31	-3.16	-3.22	-3.25

Competitive Comparison of Bezeq The Israeli Telecommunication's Beneish M-Score

For the Telecom Services subindustry, Bezeq The Israeli Telecommunication'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.

Bezeq The Israeli Telecommunication's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Bezeq The Israeli Telecommunication's Beneish M-Score distribution charts can be found below:

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

Bezeq The Israeli Telecommunication 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 Bezeq The Israeli Telecommunication 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 * 0.9254

0.528 * 1.0056

0.404 * 0.9845

0.892 * 1.013

0.115 * 1.0408

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8016

4.679 * -0.16328

0.327 * 0.9527

-3.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $420 Mil.
Revenue was 600.21 + 609.357 + 618.504 + 620.926 = $2,449 Mil.
Gross Profit was 491.79 + 506.318 + 516.81 + 507.125 = $2,022 Mil.
Total Current Assets was $939 Mil.
Total Assets was $3,734 Mil.
Property, Plant and Equipment(Net PPE) was $2,340 Mil.
Depreciation, Depletion and Amortization(DDA) was $502 Mil.
Selling, General, & Admin. Expense(SGA) was $116 Mil.
Total Current Liabilities was $990 Mil.
Long-Term Debt & Capital Lease Obligation was $2,017 Mil.
Net Income was 64.03 + 79.902 + 92.278 + 83.669 = $320 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 244.281 + 247.24 + 208.5 + 229.484 = $930 Mil.

Total Receivables was $448 Mil.
Revenue was 603.707 + 608.55 + 598.596 + 606.667 = $2,418 Mil.
Gross Profit was 497.44 + 507.932 + 499.054 + 502.821 = $2,007 Mil.
Total Current Assets was $932 Mil.
Total Assets was $3,608 Mil.
Property, Plant and Equipment(Net PPE) was $2,230 Mil.
Depreciation, Depletion and Amortization(DDA) was $503 Mil.
Selling, General, & Admin. Expense(SGA) was $143 Mil.
Total Current Liabilities was $951 Mil.
Long-Term Debt & Capital Lease Obligation was $2,100 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)
	=	(419.69 / 2448.997)	/	(447.669 / 2417.52)
	=	0.171372	/	0.185177
	=	0.9254

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)
	=	(2007.247 / 2417.52)	/	(2022.043 / 2448.997)
	=	0.830292	/	0.825662
	=	1.0056

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 - (938.652 + 2340.039) / 3733.624)	/	(1 - (931.926 + 2229.736) / 3608.255)
	=	0.121848	/	0.12377
	=	0.9845

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
	=	2448.997	/	2417.52
	=	1.013

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))
	=	(502.552 / (502.552 + 2229.736))	/	(502.283 / (502.283 + 2340.039))
	=	0.183931	/	0.176716
	=	1.0408

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)
	=	(116.221 / 2448.997)	/	(143.125 / 2417.52)
	=	0.047457	/	0.059203
	=	0.8016

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)
	=	((2016.932 + 990.037) / 3733.624)	/	((2099.525 + 950.759) / 3608.255)
	=	0.805375	/	0.845363
	=	0.9527

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
	=	(319.879 - 0	-	929.505)	/	3733.624
	=	-0.16328

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.

Bezeq The Israeli Telecommunication has a M-score of -3.25 suggests that the company is unlikely to be a manipulator.

Bezeq The Israeli Telecommunication Beneish M-Score Related Terms

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Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Bezeq The Israeli Telecommunication Corp Ltd (OTCPK:BZQIY) » Definitions » Beneish M-Score

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BEZQ:Israel

Address

132 Menachem Begin Avenue, Azrieli Center, (Triangle Tower), 27th Floor, Tel Aviv, ISR, 61620

Website

https://www.bezeq.co.il

Bezeq The Israeli Telecommunication Corp Ltd is a triple-play telecommunications company. The company generates revenue through the provision of mobile, broadband, and data. It operates through four business segments: Bezeq, Pelephone, Bezeq International, and DBS Satellite Services. The Bezeq segment generates revenue from fixed-line communications and contributes the majority of overall company revenue. Pelephone derives revenue from the provision of mobile services. Bezeq International and DBS Satellite Services produce revenue from the provision of Internet services and satellite TV services, respectively. The company owns telecommunications infrastructure, such as fibre networks. It generates the vast majority of its revenue in Israel.