Hosen Group (SGX:5EV) Beneish M-Score : -2.99 (As of May. 13, 2024)

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What is Hosen 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 -2.99 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SGX:5EV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.55 Max: 0.5
Current: -2.99

During the past 13 years, the highest Beneish M-Score of Hosen Group was 0.50. The lowest was -3.02. And the median was -2.55.

Hosen Group Beneish M-Score Historical Data

The historical data trend for Hosen 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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Hosen Group Beneish M-Score Chart

Hosen Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.02

-2.17

-2.53

-1.66

-2.99

Hosen Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-	-1.66	-	-2.99

Competitive Comparison of Hosen Group's Beneish M-Score

For the Food Distribution subindustry, Hosen 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.

Hosen Group's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Hosen Group's Beneish M-Score distribution charts can be found below:

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

Hosen 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 Hosen 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 * 0.8689

0.528 * 0.9929

0.404 * 1.5129

0.892 * 0.9087

0.115 * 1.0136

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0359

4.679 * -0.120856

0.327 * 0.8349

-2.99

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was S$12.76 Mil.
Revenue was S$67.30 Mil.
Gross Profit was S$14.97 Mil.
Total Current Assets was S$34.88 Mil.
Total Assets was S$52.52 Mil.
Property, Plant and Equipment(Net PPE) was S$17.36 Mil.
Depreciation, Depletion and Amortization(DDA) was S$1.16 Mil.
Selling, General, & Admin. Expense(SGA) was S$3.29 Mil.
Total Current Liabilities was S$15.27 Mil.
Long-Term Debt & Capital Lease Obligation was S$3.10 Mil.
Net Income was S$0.99 Mil.
Gross Profit was S$0.00 Mil.
Cash Flow from Operations was S$7.33 Mil.

Total Receivables was S$16.16 Mil.
Revenue was S$74.06 Mil.
Gross Profit was S$16.35 Mil.
Total Current Assets was S$40.43 Mil.
Total Assets was S$58.80 Mil.
Property, Plant and Equipment(Net PPE) was S$18.17 Mil.
Depreciation, Depletion and Amortization(DDA) was S$1.23 Mil.
Selling, General, & Admin. Expense(SGA) was S$3.50 Mil.
Total Current Liabilities was S$21.52 Mil.
Long-Term Debt & Capital Lease Obligation was S$3.12 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)
	=	(12.763 / 67.297)	/	(16.164 / 74.058)
	=	0.189652	/	0.218261
	=	0.8689

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)
	=	(16.354 / 74.058)	/	(14.967 / 67.297)
	=	0.220827	/	0.222402
	=	0.9929

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 - (34.881 + 17.359) / 52.517)	/	(1 - (40.425 + 18.172) / 58.802)
	=	0.005274	/	0.003486
	=	1.5129

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
	=	67.297	/	74.058
	=	0.9087

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))
	=	(1.232 / (1.232 + 18.172))	/	(1.16 / (1.16 + 17.359))
	=	0.063492	/	0.062638
	=	1.0136

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)
	=	(3.291 / 67.297)	/	(3.496 / 74.058)
	=	0.048903	/	0.047206
	=	1.0359

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)
	=	((3.101 + 15.273) / 52.517)	/	((3.118 + 21.522) / 58.802)
	=	0.349868	/	0.419033
	=	0.8349

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
	=	(0.986 - 0	-	7.333)	/	52.517
	=	-0.120856

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.

Hosen Group has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.

Hosen Group Beneish M-Score Related Terms

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Hosen Group (SGX:5EV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Hosen Group Ltd (SGX:5EV) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

267 Pandan Loop, Singapore, SGP, 128439

Website

https://www.hosengroup.com

Hosen Group Ltd engages in the import, export, and distribution of fast moving consumer goods, specializing in packaged foods. It operates through the following segment: House brands segment which engages in the development, trading, and distribution of canned seafood, canned fruits and vegetables and canned meat products; Non-house brands segment which engages in the distribution, wholesaling and retailing of canned food and household consumable goods. The company generates maximum revenue from House brands segment.

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