Service International (FRA:SVC) Beneish M-Score : -1.83 (As of May. 03, 2024)

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What is Service International 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 -1.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:SVC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83 Med: -2.56 Max: -1.18
Current: -1.83

During the past 13 years, the highest Beneish M-Score of Service International was -1.18. The lowest was -2.83. And the median was -2.56.

Service International Beneish M-Score Historical Data

The historical data trend for Service International'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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Service International Beneish M-Score Chart

Service International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.45

-2.56

-2.37

-2.76

-1.45

Service International 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															-2.60	-2.62	-1.18	-1.45	-1.83

Competitive Comparison of Service International's Beneish M-Score

For the Personal Services subindustry, Service International'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.

Service International's Beneish M-Score Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Service International's Beneish M-Score distribution charts can be found below:

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

Service International 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 Service International 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 * 1.7473

0.528 * 1.0113

0.404 * 1.0076

0.892 * 0.9866

0.115 * 0.97

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6325

4.679 * -0.021677

0.327 * 0.9631

-1.83

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €162 Mil.
Revenue was 961.751 + 968.165 + 938.742 + 935.381 = €3,804 Mil.
Gross Profit was 252.276 + 263.694 + 237.701 + 241.335 = €995 Mil.
Total Current Assets was €413 Mil.
Total Assets was €15,359 Mil.
Property, Plant and Equipment(Net PPE) was €4,158 Mil.
Depreciation, Depletion and Amortization(DDA) was €292 Mil.
Selling, General, & Admin. Expense(SGA) was €143 Mil.
Total Current Liabilities was €668 Mil.
Long-Term Debt & Capital Lease Obligation was €4,244 Mil.
Net Income was 120.797 + 126.908 + 114.287 + 122.01 = €484 Mil.
Non Operating Income was 1.636 + 1.737 + 2.502 + 7.578 = €13 Mil.
Cash Flow from Operations was 202.513 + 254.545 + 213.463 + 132.978 = €803 Mil.

Total Receivables was €94 Mil.
Revenue was 960.814 + 970.133 + 987.497 + 937.349 = €3,856 Mil.
Gross Profit was 270.014 + 264.403 + 233.266 + 252.246 = €1,020 Mil.
Total Current Assets was €305 Mil.
Total Assets was €14,331 Mil.
Property, Plant and Equipment(Net PPE) was €4,036 Mil.
Depreciation, Depletion and Amortization(DDA) was €275 Mil.
Selling, General, & Admin. Expense(SGA) was €229 Mil.
Total Current Liabilities was €717 Mil.
Long-Term Debt & Capital Lease Obligation was €4,042 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)
	=	(162.406 / 3804.039)	/	(94.207 / 3855.793)
	=	0.042693	/	0.024433
	=	1.7473

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)
	=	(1019.929 / 3855.793)	/	(995.006 / 3804.039)
	=	0.264519	/	0.261566
	=	1.0113

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 - (413.395 + 4157.934) / 15359.486)	/	(1 - (304.59 + 4036.161) / 14331.214)
	=	0.702377	/	0.697112
	=	1.0076

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
	=	3804.039	/	3855.793
	=	0.9866

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))
	=	(274.665 / (274.665 + 4036.161))	/	(292.304 / (292.304 + 4157.934))
	=	0.063715	/	0.065683
	=	0.97

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)
	=	(142.705 / 3804.039)	/	(228.696 / 3855.793)
	=	0.037514	/	0.059312
	=	0.6325

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)
	=	((4244.144 + 668.056) / 15359.486)	/	((4042.153 + 716.751) / 14331.214)
	=	0.319815	/	0.332066
	=	0.9631

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
	=	(484.002 - 13.453	-	803.499)	/	15359.486
	=	-0.021677

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.

Service International has a M-score of -1.83 suggests that the company is unlikely to be a manipulator.

Service International Beneish M-Score Related Terms

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Service International (FRA:SVC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Service Corp International (FRA:SVC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SCI:USA SVC:Germany

Address

1929 Allen Parkway, Houston, TX, USA, 77019

Website

https://www.sci-corp.com

Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada. The company segments its operations into funeral service and cemetery business functions. At its funeral service locations, Service Corp. provides all professional services, facilities, vehicles, and merchandise related to funerals and cremations. Cemetery locations provide cemetery property, memorial markers, and graveyard services to customers. Service Corp. derives the majority of its revenue from its funeral locations, while the cemetery division also generates a significant amount of the company's total income. Geographically, the company gets a major share of revenue from the United States.