MTI Wireless Edge (LSE:MWE) Beneish M-Score : -2.69 (As of May. 12, 2024)

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What is MTI Wireless Edge 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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:MWE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.44 Max: -1.73
Current: -2.69

During the past 13 years, the highest Beneish M-Score of MTI Wireless Edge was -1.73. The lowest was -2.88. And the median was -2.44.

MTI Wireless Edge Beneish M-Score Historical Data

The historical data trend for MTI Wireless Edge'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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MTI Wireless Edge Beneish M-Score Chart

MTI Wireless Edge Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.88

-2.55

-2.83

-1.73

MTI Wireless Edge 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															-1.47	-1.73	-2.39	-2.69	-

Competitive Comparison of MTI Wireless Edge's Beneish M-Score

For the Communication Equipment subindustry, MTI Wireless Edge'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.

MTI Wireless Edge's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, MTI Wireless Edge's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where MTI Wireless Edge's Beneish M-Score falls into.

MTI Wireless Edge 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 MTI Wireless Edge 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 * 0.8162

0.528 * 0.9693

0.404 * 0.9638

0.892 * 1.1226

0.115 * 0.7514

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0428

4.679 * -0.023394

0.327 * 0.9209

-2.69

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was £11.18 Mil.
Revenue was 8.767 + 9.299 + 9.431 + 10.675 = £38.17 Mil.
Gross Profit was 2.835 + 2.982 + 3.066 + 3.368 = £12.25 Mil.
Total Current Assets was £22.50 Mil.
Total Assets was £30.52 Mil.
Property, Plant and Equipment(Net PPE) was £4.07 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.15 Mil.
Selling, General, & Admin. Expense(SGA) was £7.53 Mil.
Total Current Liabilities was £7.35 Mil.
Long-Term Debt & Capital Lease Obligation was £0.16 Mil.
Net Income was 0.687 + 0.737 + 0.885 + 0.906 = £3.22 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = £0.00 Mil.
Cash Flow from Operations was 0.549 + 0.443 + 2.653 + 0.284 = £3.93 Mil.

Total Receivables was £12.21 Mil.
Revenue was 9.352 + 8.483 + 8.364 + 7.803 = £34.00 Mil.
Gross Profit was 2.883 + 2.65 + 2.666 + 2.379 = £10.58 Mil.
Total Current Assets was £22.18 Mil.
Total Assets was £31.25 Mil.
Property, Plant and Equipment(Net PPE) was £4.86 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.97 Mil.
Selling, General, & Admin. Expense(SGA) was £6.43 Mil.
Total Current Liabilities was £7.93 Mil.
Long-Term Debt & Capital Lease Obligation was £0.42 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)
	=	(11.184 / 38.172)	/	(12.206 / 34.002)
	=	0.29299	/	0.358979
	=	0.8162

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)
	=	(10.578 / 34.002)	/	(12.251 / 38.172)
	=	0.311099	/	0.320942
	=	0.9693

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 - (22.501 + 4.065) / 30.521)	/	(1 - (22.183 + 4.863) / 31.247)
	=	0.129583	/	0.134445
	=	0.9638

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
	=	38.172	/	34.002
	=	1.1226

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))
	=	(0.965 / (0.965 + 4.863))	/	(1.149 / (1.149 + 4.065))
	=	0.16558	/	0.220368
	=	0.7514

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)
	=	(7.532 / 38.172)	/	(6.434 / 34.002)
	=	0.197317	/	0.189224
	=	1.0428

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)
	=	((0.162 + 7.35) / 30.521)	/	((0.422 + 7.929) / 31.247)
	=	0.246126	/	0.267258
	=	0.9209

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
	=	(3.215 - 0	-	3.929)	/	30.521
	=	-0.023394

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.

MTI Wireless Edge has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.

MTI Wireless Edge Beneish M-Score Related Terms

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MTI Wireless Edge (LSE:MWE) Business Description

Industry

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M7O:Germany

Address

11 Hamelacha Street, Afek Industrial Park, Rosh-Ha'Ayin, ISR, 4809121

Website

https://www.mtiwirelessedge.com

MTI Wireless Edge Ltd is an Israel-based company engaged in three segments; the antennas segment includes the development, design, manufacture, and marketing of antennas for the military and civilian sectors, Water solutions segment is a provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies, and Distribution and Consultation segment provides consulting representation, and marketing services to foreign companies in the field of RF (radio frequency) and Microwave, including engineering services in the field of aerostat systems and system engineering services, and development, manufacture, and integration of communication systems and monitoring and control systems.