Stepan Co Beneish M-Score Historical Data
The historical data trend for Stepan Co'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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Stepan Co Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.84 |
-2.71 |
-1.54 |
-2.41 |
-2.59 |
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Stepan Co Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.41 |
-2.41 |
-2.63 |
-2.61 |
-2.59 |
Competitive Comparison
For the Specialty Chemicals subindustry, Stepan Co'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.
Stepan Co Beneish M-Score Distribution
For the Chemicals industry and Basic Materials sector, Stepan Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Stepan Co's Beneish M-Score falls into.
Stepan Co 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 Stepan Co for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 1.1518 | + | 0.528 * 1.2902 | + | 0.404 * 0.9546 | + | 0.892 * 0.8386 | + | 0.115 * 1.0096 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1463 | + | 4.679 * -0.051691 | - | 0.327 * 0.9341 |
| = | -2.59 |
* 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 $422 Mil.
Revenue was 532.131 + 562.226 + 579.975 + 651.436 = $2,326 Mil.
Gross Profit was 66.405 + 71.236 + 66.397 + 73.56 = $278 Mil.
Total Current Assets was $852 Mil.
Total Assets was $2,363 Mil.
Property, Plant and Equipment(Net PPE) was $1,277 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General, & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $608 Mil.
Long-Term Debt & Capital Lease Obligation was $459 Mil.
Net Income was -1.193 + 12.571 + 12.684 + 16.142 = $40 Mil.
Non Operating Income was -10.029 + -6.318 + 2.328 + 1.511 = $-13 Mil.
Cash Flow from Operations was 68.977 + 70.097 + 107.86 + -72.058 = $175 Mil.
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Total Receivables was $437 Mil.
Revenue was 627.176 + 719.185 + 751.633 + 675.276 = $2,773 Mil.
Gross Profit was 67.76 + 118.476 + 131.614 + 109.219 = $427 Mil.
Total Current Assets was $1,045 Mil.
Total Assets was $2,433 Mil.
Property, Plant and Equipment(Net PPE) was $1,136 Mil.
Depreciation, Depletion and Amortization(DDA) was $95 Mil.
Selling, General, & Admin. Expense(SGA) was $152 Mil.
Total Current Liabilities was $671 Mil.
Long-Term Debt & Capital Lease Obligation was $506 Mil.
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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) |
| = | (422.05 / 2325.768) | / | (436.914 / 2773.27) |
| = | 0.181467 | / | 0.157545 |
| | = | 1.1518 |
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) |
| = | (427.069 / 2773.27) | / | (277.598 / 2325.768) |
| = | 0.153995 | / | 0.119358 |
| | = | 1.2902 |
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 - (851.883 + 1277.311) / 2363.354) | / | (1 - (1044.802 + 1135.837) / 2433.172) |
| = | 0.09908 | / | 0.103788 |
| | = | 0.9546 |
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 |
| = | 2325.768 | / | 2773.27 |
| | = | 0.8386 |
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)) |
| = | (94.65 / (94.65 + 1135.837)) | / | (105.338 / (105.338 + 1277.311)) |
| = | 0.076921 | / | 0.076186 |
| | = | 1.0096 |
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) |
| = | (145.94 / 2325.768) | / | (151.814 / 2773.27) |
| = | 0.062749 | / | 0.054742 |
| | = | 1.1463 |
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) |
| = | ((459.274 + 607.87) / 2363.354) | / | ((505.588 + 670.649) / 2433.172) |
| = | 0.451538 | / | 0.483417 |
| | = | 0.9341 |
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 |
| = | (40.204 - -12.508 | - | 174.876) | / | 2363.354 |
| | = | -0.051691 |
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.
Stepan Co has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.
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