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SentinelOne (STU:7B0) Beneish M-Score : -2.83 (As of May. 21, 2024)


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What is SentinelOne 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:7B0' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83   Med: -1.24   Max: -0.16
Current: -2.83

During the past 5 years, the highest Beneish M-Score of SentinelOne was -0.16. The lowest was -2.83. And the median was -1.24.


SentinelOne Beneish M-Score Historical Data

The historical data trend for SentinelOne'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.

SentinelOne Beneish M-Score Chart

SentinelOne Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
- - -1.24 -0.16 -2.83

SentinelOne Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.16 -0.60 -2.72 -2.98 -2.83

Competitive Comparison of SentinelOne's Beneish M-Score

For the Software - Infrastructure subindustry, SentinelOne'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.


SentinelOne's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, SentinelOne's Beneish M-Score distribution charts can be found below:

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



SentinelOne 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 SentinelOne 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 * 0.9964+0.528 * 0.9246+0.404 * 0.7263+0.892 * 1.4046+0.115 * 0.9072
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.854+4.679 * -0.113902-0.327 * 1.1925
=-2.85

* 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 (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was €196.7 Mil.
Revenue was 159.893 + 155.464 + 135.077 + 121.654 = €572.1 Mil.
Gross Profit was 115.584 + 114.019 + 94.698 + 82.819 = €407.1 Mil.
Total Current Assets was €1,191.0 Mil.
Total Assets was €2,131.1 Mil.
Property, Plant and Equipment(Net PPE) was €61.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €35.8 Mil.
Selling, General, & Admin. Expense(SGA) was €548.0 Mil.
Total Current Liabilities was €541.7 Mil.
Long-Term Debt & Capital Lease Obligation was €16.7 Mil.
Net Income was -66.079 + -66.578 + -80.942 + -97.465 = €-311.1 Mil.
Non Operating Income was -2.859 + 0.503 + -2.573 + -0.327 = €-5.3 Mil.
Cash Flow from Operations was -5.675 + -21.052 + -10.76 + -25.59 = €-63.1 Mil.
Total Receivables was €140.6 Mil.
Revenue was 117.017 + 117.053 + 100.762 + 72.464 = €407.3 Mil.
Gross Profit was 80.11 + 75.432 + 65.118 + 47.333 = €268.0 Mil.
Total Current Assets was €848.9 Mil.
Total Assets was €2,096.3 Mil.
Property, Plant and Equipment(Net PPE) was €57.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €28.9 Mil.
Selling, General, & Admin. Expense(SGA) was €456.8 Mil.
Total Current Liabilities was €439.2 Mil.
Long-Term Debt & Capital Lease Obligation was €21.4 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)
=(196.748 / 572.088) / (140.585 / 407.296)
=0.343912 / 0.345167
=0.9964

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)
=(267.993 / 407.296) / (407.12 / 572.088)
=0.657981 / 0.711639
=0.9246

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 - (1190.95 + 61.773) / 2131.052) / (1 - (848.872 + 57.819) / 2096.271)
=0.412157 / 0.567474
=0.7263

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
=572.088 / 407.296
=1.4046

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))
=(28.864 / (28.864 + 57.819)) / (35.821 / (35.821 + 61.773))
=0.332983 / 0.367041
=0.9072

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)
=(547.959 / 572.088) / (456.826 / 407.296)
=0.957823 / 1.121607
=0.854

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)
=((16.743 + 541.682) / 2131.052) / ((21.417 + 439.203) / 2096.271)
=0.262042 / 0.219733
=1.1925

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
=(-311.064 - -5.256 - -63.077) / 2131.052
=-0.113902

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.

SentinelOne has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.


SentinelOne Beneish M-Score Related Terms

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SentinelOne (STU:7B0) Business Description

Comparable Companies
Traded in Other Exchanges
Address
444 Castro Street, Suite 400, Mountain View, CA, USA, 94041
SentinelOne is a cloud-based cybersecurity company specializing in endpoint protection. SentinelOne's primary offering is its Singularity platform that offers a single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The California-based firm was founded in 2013 and went public in 2021.

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