Chung-Hsin Electric & Machinery Mfg (TPE:1513) Beneish M-Score : -2.78 (As of May. 11, 2024)

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What is Chung-Hsin Electric & Machinery Mfg 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Chung-Hsin Electric & Machinery Mfg's Beneish M-Score or its related term are showing as below:

TPE:1513' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -2.55 Max: -1.94
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Chung-Hsin Electric & Machinery Mfg was -1.94. The lowest was -3.31. And the median was -2.55.

Chung-Hsin Electric & Machinery Mfg Beneish M-Score Historical Data

The historical data trend for Chung-Hsin Electric & Machinery Mfg'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.

Chung-Hsin Electric & Machinery Mfg Beneish M-Score Chart

Chung-Hsin Electric & Machinery Mfg Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.78

-2.49

-2.51

-2.71

-3.06

Chung-Hsin Electric & Machinery Mfg Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.64	-2.58	-2.75	-3.06	-2.78

Competitive Comparison of Chung-Hsin Electric & Machinery Mfg's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Chung-Hsin Electric & Machinery Mfg'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.

Chung-Hsin Electric & Machinery Mfg's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Chung-Hsin Electric & Machinery Mfg's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Chung-Hsin Electric & Machinery Mfg's Beneish M-Score falls into.

Chung-Hsin Electric & Machinery Mfg 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 Chung-Hsin Electric & Machinery Mfg 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 * 0.8971

0.528 * 0.8659

0.404 * 1.3666

0.892 * 1.1422

0.115 * 0.8479

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9565

4.679 * -0.093216

0.327 * 0.8916

-2.78

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was NT$6,444 Mil.
Revenue was 6138.65 + 5846.654 + 5527.053 + 4929.885 = NT$22,442 Mil.
Gross Profit was 1812.421 + 1365.833 + 1684.317 + 1789.424 = NT$6,652 Mil.
Total Current Assets was NT$20,097 Mil.
Total Assets was NT$46,625 Mil.
Property, Plant and Equipment(Net PPE) was NT$18,805 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,930 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,698 Mil.
Total Current Liabilities was NT$13,805 Mil.
Long-Term Debt & Capital Lease Obligation was NT$11,566 Mil.
Net Income was 953.24 + 791.208 + 735.647 + -685.657 = NT$1,794 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 612.438 + 3389.409 + 1574.085 + 564.651 = NT$6,141 Mil.

Total Receivables was NT$6,289 Mil.
Revenue was 5841.28 + 4799.063 + 4633.717 + 4373.885 = NT$19,648 Mil.
Gross Profit was 1579.345 + 1069.839 + 1229.482 + 1163.966 = NT$5,043 Mil.
Total Current Assets was NT$17,133 Mil.
Total Assets was NT$42,666 Mil.
Property, Plant and Equipment(Net PPE) was NT$20,362 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,628 Mil.
Selling, General, & Admin. Expense(SGA) was NT$1,554 Mil.
Total Current Liabilities was NT$12,920 Mil.
Long-Term Debt & Capital Lease Obligation was NT$13,119 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)
	=	(6443.975 / 22442.242)	/	(6288.543 / 19647.945)
	=	0.287136	/	0.320061
	=	0.8971

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)
	=	(5042.632 / 19647.945)	/	(6651.995 / 22442.242)
	=	0.256649	/	0.296405
	=	0.8659

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 - (20096.555 + 18805.258) / 46624.594)	/	(1 - (17132.799 + 20362.2) / 42666.448)
	=	0.165637	/	0.121206
	=	1.3666

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
	=	22442.242	/	19647.945
	=	1.1422

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))
	=	(2627.654 / (2627.654 + 20362.2))	/	(2929.809 / (2929.809 + 18805.258))
	=	0.114296	/	0.134796
	=	0.8479

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)
	=	(1697.819 / 22442.242)	/	(1554.095 / 19647.945)
	=	0.075653	/	0.079097
	=	0.9565

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)
	=	((11565.831 + 13804.877) / 46624.594)	/	((13118.786 + 12920.083) / 42666.448)
	=	0.544149	/	0.610289
	=	0.8916

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
	=	(1794.438 - 0	-	6140.583)	/	46624.594
	=	-0.093216

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.

Chung-Hsin Electric & Machinery Mfg has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Chung-Hsin Electric & Machinery Mfg Beneish M-Score Related Terms

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Chung-Hsin Electric & Machinery Mfg (TPE:1513) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Chung-Hsin Electric & Machinery Mfg Corp (TPE:1513) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 25, Wen-Te Road, Lo Shan Tsun, Guishan District, Taoyuan, TWN, 33383

Website

https://www.chem.com.tw

Chung-Hsin Electric & Machinery Mfg Corp is a manufacturer of power generation machinery and equipment and its related parts, air-conditioners, dehumidifiers, and meters. The company's products include chillers, generator sets, high voltage circuit breakers, smart grid electric power automation equipment, customized fuel cell systems, methanol reformers, handheld document terminals, industrial computers and parking facilities, among others. Its operating segments include Electricity Power; Service and Engineering and other. The company generates maximum revenue from the Electricity Power segment.

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