EFG HoldingE (CAI:HRHO) Beneish M-Score : 2.67 (As of May. 22, 2024)

View and export this data going back to 1999. Start your Free Trial

What is EFG HoldingE 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.

Warning Sign:

Beneish M-Score 2.67 higher than -1.78, which implies that the company might have manipulated its financial results.

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

CAI:HRHO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -0.76 Max: 2.67
Current: 2.67

During the past 13 years, the highest Beneish M-Score of EFG HoldingE was 2.67. The lowest was -2.74. And the median was -0.76.

EFG HoldingE Beneish M-Score Historical Data

The historical data trend for EFG HoldingE'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.

EFG HoldingE Beneish M-Score Chart

EFG HoldingE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.74

-1.72

-0.76

1.82

EFG HoldingE Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-0.50	1.82	5.59	2.67	-

Competitive Comparison of EFG HoldingE's Beneish M-Score

For the Capital Markets subindustry, EFG HoldingE'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.

EFG HoldingE's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, EFG HoldingE's Beneish M-Score distribution charts can be found below:

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

EFG HoldingE 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 EFG HoldingE 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 * 0.3433

0.528 * 8.6469

0.404 * 3.6741

0.892 * 1.705

0.115 * 1.1197

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1198

4.679 * -0.003597

0.327 * 0.8898

2.67

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was E£21,463 Mil.
Revenue was 4778.031 + 1860.897 + 4216.915 + 3591.382 = E£14,447 Mil.
Gross Profit was 1398.29 + -2238.362 + 361.288 + 1069.417 = E£591 Mil.
Total Current Assets was E£50,633 Mil.
Total Assets was E£114,218 Mil.
Property, Plant and Equipment(Net PPE) was E£1,993 Mil.
Depreciation, Depletion and Amortization(DDA) was E£417 Mil.
Selling, General, & Admin. Expense(SGA) was E£2,240 Mil.
Total Current Liabilities was E£30,317 Mil.
Long-Term Debt & Capital Lease Obligation was E£7,880 Mil.
Net Income was 404.651 + 884.567 + 776.459 + 337.258 = E£2,403 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = E£0 Mil.
Cash Flow from Operations was -6236.742 + 790.998 + 3750.631 + 4508.888 = E£2,814 Mil.

Total Receivables was E£36,669 Mil.
Revenue was 3426.858 + 307.668 + 2982.769 + 1755.994 = E£8,473 Mil.
Gross Profit was 1142.072 + -1810.947 + 2850.113 + 814.08 = E£2,995 Mil.
Total Current Assets was E£83,561 Mil.
Total Assets was E£99,177 Mil.
Property, Plant and Equipment(Net PPE) was E£1,060 Mil.
Depreciation, Depletion and Amortization(DDA) was E£254 Mil.
Selling, General, & Admin. Expense(SGA) was E£1,173 Mil.
Total Current Liabilities was E£29,127 Mil.
Long-Term Debt & Capital Lease Obligation was E£8,148 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)
	=	(21462.568 / 14447.225)	/	(36669.075 / 8473.289)
	=	1.485584	/	4.327608
	=	0.3433

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)
	=	(2995.318 / 8473.289)	/	(590.633 / 14447.225)
	=	0.353501	/	0.040882
	=	8.6469

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 - (50633.252 + 1993.427) / 114217.628)	/	(1 - (83561.014 + 1059.564) / 99176.802)
	=	0.539242	/	0.14677
	=	3.6741

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
	=	14447.225	/	8473.289
	=	1.705

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))
	=	(254.49 / (254.49 + 1059.564))	/	(416.916 / (416.916 + 1993.427))
	=	0.193668	/	0.17297
	=	1.1197

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)
	=	(2239.591 / 14447.225)	/	(1172.979 / 8473.289)
	=	0.155019	/	0.138433
	=	1.1198

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)
	=	((7879.907 + 30316.821) / 114217.628)	/	((8147.643 + 29127.284) / 99176.802)
	=	0.334421	/	0.375843
	=	0.8898

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
	=	(2402.935 - 0	-	2813.775)	/	114217.628
	=	-0.003597

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.

EFG HoldingE has a M-score of 2.67 signals that the company is likely to be a manipulator.

EFG HoldingE Beneish M-Score Related Terms

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

EFG HoldingE (CAI:HRHO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » EFG Holding SAE (CAI:HRHO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

EFGZF:USA EFGD:UK

Address

Alexandria Desert Road, 6 October, Smart Village building No. B129, Phase 3, KM 28, Cairo, EGY, 12577

Website

https://www.efghermes.com

Egyptian Financial Group-Hermes Holding Co is a provider of investment banking products and services in the Middle East. The company is headquartered in Egypt and conducts the majority of its business domestically. The bank also has operations in Gulf countries and Lebanon. The company generates the majority of its revenue through brokerage services. In addition, the bank generates revenue through asset-management products, such as traditional and alternative investments, fixed-income, money market, equity, and Shariah-compliant mandates. The bank also engages in equity research, strategy and macroeconomic forecasts, industrial research, and private equity services for its clients.

EFG HoldingE (CAI:HRHO) Headlines

No Headlines