Cadiz (CDZI) Beneish M-Score

: -2.08 (As of Today)

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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 -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CDZI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.49 Med: -3.27 Max: 3.41
Current: -2.08

During the past 13 years, the highest Beneish M-Score of Cadiz was 3.41. The lowest was -4.49. And the median was -3.27.

Cadiz Beneish M-Score Historical Data

The historical data trend for Cadiz'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.

Cadiz Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-3.16

-2.90

0.43

-3.55

-2.08

Cadiz 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																-3.55	-3.37	-1.92	-2.93	-2.08

Competitive Comparison

For the Utilities - Regulated Water subindustry, Cadiz'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.

Cadiz Beneish M-Score Distribution

For the Utilities - Regulated industry and Utilities sector, Cadiz's Beneish M-Score distribution charts can be found below:

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

Cadiz 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 Cadiz 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 * 1.5001

0.528 * 0.8611

0.404 * 0.8841

0.892 * 1.3273

0.115 * 0.5119

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9241

4.679 * -0.046296

0.327 * 0.9087

-2.08

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.90 Mil.
Revenue was 0.684 + 0.368 + 0.809 + 0.13 = $1.99 Mil.
Gross Profit was -0.721 + -0.324 + 0.041 + 0.13 = $-0.87 Mil.
Total Current Assets was $8.02 Mil.
Total Assets was $107.37 Mil.
Property, Plant and Equipment(Net PPE) was $87.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.37 Mil.
Selling, General, & Admin. Expense(SGA) was $18.82 Mil.
Total Current Liabilities was $5.84 Mil.
Long-Term Debt & Capital Lease Obligation was $60.91 Mil.
Net Income was -6.755 + -6.936 + -7.064 + -10.691 = $-31.45 Mil.
Non Operating Income was 0 + 0 + -0.35 + -5.201 = $-5.55 Mil.
Cash Flow from Operations was -5.522 + -5.531 + -5.802 + -4.069 = $-20.92 Mil.

Total Receivables was $0.45 Mil.
Revenue was 0.574 + 0.599 + 0.185 + 0.142 = $1.50 Mil.
Gross Profit was -0.33 + -0.564 + 0.185 + 0.142 = $-0.57 Mil.
Total Current Assets was $12.44 Mil.
Total Assets was $110.79 Mil.
Property, Plant and Equipment(Net PPE) was $84.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.67 Mil.
Selling, General, & Admin. Expense(SGA) was $15.34 Mil.
Total Current Liabilities was $5.64 Mil.
Long-Term Debt & Capital Lease Obligation was $70.14 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)
	=	(0.904 / 1.991)	/	(0.454 / 1.5)
	=	0.454043	/	0.302667
	=	1.5001

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)
	=	(-0.567 / 1.5)	/	(-0.874 / 1.991)
	=	-0.378	/	-0.438975
	=	0.8611

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 - (8.02 + 87.648) / 107.374)	/	(1 - (12.435 + 84.691) / 110.787)
	=	0.109021	/	0.123309
	=	0.8841

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
	=	1.991	/	1.5
	=	1.3273

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))
	=	(0.672 / (0.672 + 84.691))	/	(1.369 / (1.369 + 87.648))
	=	0.007872	/	0.015379
	=	0.5119

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)
	=	(18.819 / 1.991)	/	(15.342 / 1.5)
	=	9.452034	/	10.228
	=	0.9241

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)
	=	((60.906 + 5.835) / 107.374)	/	((70.139 + 5.639) / 110.787)
	=	0.621575	/	0.683997
	=	0.9087

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
	=	(-31.446 - -5.551	-	-20.924)	/	107.374
	=	-0.046296

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.

Cadiz has a M-score of -2.08 suggests that the company is unlikely to be a manipulator.

Cadiz Beneish M-Score Related Terms

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Cadiz (CDZI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Cadiz Inc (NAS:CDZI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2ZC:Germany

Address

550 South Hope Street, Suite 2850, Los Angeles, CA, USA, 90071

Website

https://www.cadizinc.com

Cadiz Inc is a land and water resource development company in California. Its primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage, and agriculture. The company focuses on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project which will capture and conserve native groundwater currently being lost to evaporation from the aquifer system beneath the property of Cadiz and Fenner valleys of eastern San Bernardino County, and deliver it to water providers throughout Southern California. The company operates in two segment- Land and Water Resources and ATEC Water Systems LLC.

Executives

Susan P Kennedy	director	550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071
Winston H Hickox	director	C/O THOMAS PROPERTIES GROUP, INC., 515 SOUTH FLOWER STREET, 6TH FLOOR, LOS ANGELES CA 90071
Maria S. Dreyfus	director	125 WEST 55TH STREET, 15TH FLOOR, NEW YORK NY 10019
Scott S Slater	director, officer: Chief Executive Officer	550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071
Heerema International Group Services Sa	10 percent owner	ROUTE DE FLORISSANT 81, GENEVE V8 1206
Kenneth T Lombard	director	550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071
Richard Garcia Polanco	director	550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071
Stephen E Courter	director	C/O CADIZ INC., 550 SOUTH HOPE STREET, 2850, LOS ANGELES X1 90071
Webb De Macias Carolyn D	director	304 NORTH ALMANSOR STREET, ALHAMBRA CA 91801
Maria Echaveste	director	1511 ARCH STREET, BERKELEY CA 94708
Odey Asset Management Llp	10 percent owner	18 UPPER BROOK STREET, LONDON, UNITED KINGDOM X0 W1K 7PU
Odey Holdings Ltd	10 percent owner	18 UPPER BROOK STREET, LONDON X0 W1K 7PU
Odey Robin Crispin William	10 percent owner	18 UPPER BROOK STREET, LONDON, UNITED KINGDOM X0 W1K 7PU
Odey Asset Management Group Ltd	10 percent owner	18 UPPER BROOK STREET, LONDON X0 W1K 7PU
Keith Brackpool	director, officer: Chief Executive Officer	550 SOUTH HOPE STREET, SUITE 2850, LOS ANGELES CA 90071