Kingstone (Kingstone) Beneish M-Score : -2.14 (As of Apr. 25, 2024)

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What is Kingstone Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KINS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77 Med: -2.72 Max: -2.13
Current: -2.14

During the past 13 years, the highest Beneish M-Score of Kingstone was -2.13. The lowest was -3.77. And the median was -2.72.

Kingstone 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 Kingstone 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 * 1.0021

0.528 * 1

0.404 * 0.9823

0.892 * 1.1078

0.115 * 0.9916

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * 0.014318

0.327 * 0.9536

-2.14

* 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.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $89.2 Mil.
Revenue was 36.606 + 34.237 + 36.72 + 36.628 = $144.2 Mil.
Gross Profit was 36.606 + 34.237 + 36.72 + 36.628 = $144.2 Mil.
Total Current Assets was $247.1 Mil.
Total Assets was $317.6 Mil.
Property, Plant and Equipment(Net PPE) was $9.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.0 Mil.
Selling, General, & Admin. Expense(SGA) was $0.0 Mil.
Total Current Liabilities was $17.2 Mil.
Long-Term Debt & Capital Lease Obligation was $25.2 Mil.
Net Income was 2.946 + -3.538 + -0.522 + -5.055 = $-6.2 Mil.
Non Operating Income was 0.156 + 0.142 + 0.151 + 0.161 = $0.6 Mil.
Cash Flow from Operations was 4.427 + 1.256 + -13.643 + -3.367 = $-11.3 Mil.

Total Receivables was $80.3 Mil.
Revenue was 37.091 + 35.538 + 28.979 + 28.551 = $130.2 Mil.
Gross Profit was 37.091 + 35.538 + 28.979 + 28.551 = $130.2 Mil.
Total Current Assets was $247.0 Mil.
Total Assets was $320.3 Mil.
Property, Plant and Equipment(Net PPE) was $10.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.3 Mil.
Selling, General, & Admin. Expense(SGA) was $1.5 Mil.
Total Current Liabilities was $19.7 Mil.
Long-Term Debt & Capital Lease Obligation was $25.2 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)
	=	(89.199 / 144.191)	/	(80.346 / 130.159)
	=	0.618617	/	0.617291
	=	1.0021

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)
	=	(130.159 / 130.159)	/	(144.191 / 144.191)
	=	1	/	1
	=	1

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 - (247.097 + 9.396) / 317.633)	/	(1 - (247.019 + 10.542) / 320.333)
	=	0.192486	/	0.195959
	=	0.9823

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
	=	144.191	/	130.159
	=	1.1078

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))
	=	(3.3 / (3.3 + 10.542))	/	(2.974 / (2.974 + 9.396))
	=	0.238405	/	0.24042
	=	0.9916

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)
	=	(0 / 144.191)	/	(1.548 / 130.159)
	=	0	/	0.011893
	=	0

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)
	=	((25.244 + 17.188) / 317.633)	/	((25.159 + 19.714) / 320.333)
	=	0.133588	/	0.140082
	=	0.9536

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
	=	(-6.169 - 0.61	-	-11.327)	/	317.633
	=	0.014318

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.

Kingstone has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.

Kingstone Beneish M-Score Related Terms

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Kingstone (Kingstone) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Kingstone Companies Inc (NAS:KINS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Joys Lane, Kingston, NY, USA, 12401

Website

https://www.kingstonecompanies.com

Kingstone Companies Inc is a multi-line regional property and casualty insurance holding company. It offers insurance policies to small and mid-sized businesses as well as to individuals.

Executives

Meryl S. Golden	director, officer: Chief Operating Officer	15 JOYS LANE, KINGSTON NY 12401
Timothy P Mcfadden	director	310 8TH AVENUE NORTH, ST. PETERSBURG FL 33701
Michelle A. Gage	officer: Chief Accounting Officer	C/O KINGSTONE COMPANIES, INC., 15 JOYS LANE, KINGSTON NY 12401
Minlei Chen	officer: Chief Actuary and Senior VP	KINGSTONE INSURANCE COMPANY, 15 JOYS LANE, KINGSTON NY 12401
Jennifer Gravelle	officer: Chief Financial Officer	C/O KINGSTONE COMPANIES, INC., 15 JOYS LANE, KINGSTON NY 12401
Pelt Scott Van	officer: Chief Financial Officer, Treas	C/O KINGSTONE COMPANIES, INC., 15 JOYS LANE, KINGSTON NY 12401
William L Yankus	director	10 PHEASANT HILL, FARMINGTON CT 06032
Richard Jason Swartz	officer: Chief Accounting Officer	70 EAST SUNRISE HIGHWAY, VALLEY STREAM NY 11581
Floyd R Tupper	director	C/O KINGSTONE COMPANIES, INC., 15 JOYS LANE, KINGSTON NY 12401
Barry Goldstein	director, 10 percent owner, officer: President, COB, CEO, CFO, Trea	15 JOYS LANE, KINGSTON NY 12401
Jay M Haft	director, 10 percent owner	C/O NEUROTROPE, INC., 50 PARK PLACE, SUITE 1401, NEWARK NJ 07102
Dale A Thatcher	director	40 WANTAGE AVE, BRANCHVILLE NJ 07890
Carla D'andre	director	3540 LOQUAT AVENUE, MIAMI FL 33133
Jack D Siebald	director	1336 BOXWOOD DRIVE WEST, HEWLETT HARBOR NY 11557
Benjamin Walden	officer: VP+Chief Actuary-Kingstone Ins	11 MILL POND LANE, CENTERPORT NY 11721