Chapel Down Group (LSE:CDGP) Beneish M-Score : -1.91 (As of May. 08, 2024)

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What is Chapel Down Group 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 -1.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:CDGP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95 Med: -2.6 Max: -1.34
Current: -1.91

During the past 9 years, the highest Beneish M-Score of Chapel Down Group was -1.34. The lowest was -2.95. And the median was -2.60.

Chapel Down Group Beneish M-Score Historical Data

The historical data trend for Chapel Down Group'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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Chapel Down Group Beneish M-Score Chart

Chapel Down Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.60

-2.95

-2.68

-1.34

-1.91

Chapel Down Group Quarterly Data
	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
Beneish M-Score	Get a 7-Day Free Trial				-2.60	-2.95	-2.68	-1.34	-1.91

Competitive Comparison of Chapel Down Group's Beneish M-Score

For the Beverages - Wineries & Distilleries subindustry, Chapel Down Group'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.

Chapel Down Group's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Chapel Down Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Chapel Down Group's Beneish M-Score falls into.

Chapel Down Group 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 Chapel Down Group 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 * 0.7

0.528 * 0.837

0.404 * 0.0054

0.892 * 1.524

0.115 * 1.0456

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8728

4.679 * 0.068937

0.327 * 1.0774

-2.45

This Year (Dec23) TTM:

Last Year (Dec19) TTM:

Total Receivables was £3.59 Mil.
Revenue was 17.201 + 17.746 + 16.64 + 13.294 = £64.88 Mil.
Gross Profit was 8.911 + 8.535 + 7.048 + 5.149 = £29.64 Mil.
Total Current Assets was £27.18 Mil.
Total Assets was £51.12 Mil.
Property, Plant and Equipment(Net PPE) was £23.90 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.20 Mil.
Selling, General, & Admin. Expense(SGA) was £23.87 Mil.
Total Current Liabilities was £8.42 Mil.
Long-Term Debt & Capital Lease Obligation was £7.46 Mil.
Net Income was 1.527 + 1.053 + 1.234 + -2.8 = £1.01 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = £0.00 Mil.
Cash Flow from Operations was -1.911 + -1.115 + 1.439 + -0.923 = £-2.51 Mil.

Total Receivables was £3.37 Mil.
Revenue was 14.801 + 12.863 + 8.119 + 6.791 = £42.57 Mil.
Gross Profit was 5.351 + 4.798 + 3.244 + 2.888 = £16.28 Mil.
Total Current Assets was £16.56 Mil.
Total Assets was £44.25 Mil.
Property, Plant and Equipment(Net PPE) was £20.99 Mil.
Depreciation, Depletion and Amortization(DDA) was £2.96 Mil.
Selling, General, & Admin. Expense(SGA) was £17.95 Mil.
Total Current Liabilities was £12.76 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 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)
	=	(3.593 / 64.881)	/	(3.368 / 42.574)
	=	0.055378	/	0.079109
	=	0.7

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)
	=	(16.281 / 42.574)	/	(29.643 / 64.881)
	=	0.382416	/	0.456883
	=	0.837

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 - (27.179 + 23.898) / 51.119)	/	(1 - (16.561 + 20.985) / 44.248)
	=	0.000822	/	0.151464
	=	0.0054

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
	=	64.881	/	42.574
	=	1.524

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))
	=	(2.957 / (2.957 + 20.985))	/	(3.201 / (3.201 + 23.898))
	=	0.123507	/	0.118122
	=	1.0456

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)
	=	(23.869 / 64.881)	/	(17.946 / 42.574)
	=	0.367889	/	0.421525
	=	0.8728

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)
	=	((7.457 + 8.42) / 51.119)	/	((0 + 12.756) / 44.248)
	=	0.310589	/	0.288284
	=	1.0774

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
	=	(1.014 - 0	-	-2.51)	/	51.119
	=	0.068937

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.

Chapel Down Group has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

Chapel Down Group Beneish M-Score Related Terms

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Chapel Down Group (LSE:CDGP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Chapel Down Group PLC (LSE:CDGP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

1U6:Germany

Address

Small Hythe Road, Chapel Down Winery, Tenterden, Kent, GBR, TN30 7NG

Website

https://www.chapeldown.com

Chapel Down Group PLC operates in the beverage industry in the United Kingdom. The company is engaged as a producer and supplier of sparkling wine and still wine. Its product categories are wines, vodka, and brandy and the product portfolio of the company include Chapel Down Bacchus Gin, Brandy and Glasses Gift sets, and Chapel Down Chardonnay Vodka. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in Rest of Europe and Rest of the world.

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