PAL Group Holdings Co (TSE:2726) Beneish M-Score : -2.32 (As of May. 12, 2024)

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What is PAL Group Holdings Co 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 -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2726' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.65 Max: -2.19
Current: -2.32

During the past 13 years, the highest Beneish M-Score of PAL Group Holdings Co was -2.19. The lowest was -2.81. And the median was -2.65.

PAL Group Holdings Co Beneish M-Score Historical Data

The historical data trend for PAL Group Holdings 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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PAL Group Holdings Co Beneish M-Score Chart

PAL Group Holdings Co Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-2.71

-2.50

-2.69

-2.47

-2.32

PAL Group Holdings Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-2.47	-	-	-	-2.32

Competitive Comparison of PAL Group Holdings Co's Beneish M-Score

For the Apparel Retail subindustry, PAL Group Holdings 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.

PAL Group Holdings Co's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PAL Group Holdings Co's Beneish M-Score distribution charts can be found below:

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

PAL Group Holdings 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 PAL Group Holdings Co 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 * 1.0361

0.528 * 0.9937

0.404 * 0.9573

0.892 * 1.1706

0.115 * 1.0606

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0089

4.679 * -0.004845

0.327 * 0.9658

-2.32

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was 円10,374 Mil.
Revenue was 円192,544 Mil.
Gross Profit was 円106,283 Mil.
Total Current Assets was 円96,692 Mil.
Total Assets was 円126,922 Mil.
Property, Plant and Equipment(Net PPE) was 円10,905 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,262 Mil.
Selling, General, & Admin. Expense(SGA) was 円11,273 Mil.
Total Current Liabilities was 円45,023 Mil.
Long-Term Debt & Capital Lease Obligation was 円12,060 Mil.
Net Income was 円12,845 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円13,460 Mil.

Total Receivables was 円8,553 Mil.
Revenue was 円164,482 Mil.
Gross Profit was 円90,221 Mil.
Total Current Assets was 円85,496 Mil.
Total Assets was 円112,510 Mil.
Property, Plant and Equipment(Net PPE) was 円9,120 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,032 Mil.
Selling, General, & Admin. Expense(SGA) was 円9,545 Mil.
Total Current Liabilities was 円43,237 Mil.
Long-Term Debt & Capital Lease Obligation was 円9,157 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)
	=	(10374 / 192544)	/	(8553 / 164482)
	=	0.053879	/	0.052
	=	1.0361

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)
	=	(90221 / 164482)	/	(106283 / 192544)
	=	0.548516	/	0.551993
	=	0.9937

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 - (96692 + 10905) / 126922)	/	(1 - (85496 + 9120) / 112510)
	=	0.152259	/	0.159044
	=	0.9573

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
	=	192544	/	164482
	=	1.1706

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))
	=	(2032 / (2032 + 9120))	/	(2262 / (2262 + 10905))
	=	0.182209	/	0.171793
	=	1.0606

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)
	=	(11273 / 192544)	/	(9545 / 164482)
	=	0.058548	/	0.058031
	=	1.0089

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)
	=	((12060 + 45023) / 126922)	/	((9157 + 43237) / 112510)
	=	0.449749	/	0.465683
	=	0.9658

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
	=	(12845 - 0	-	13460)	/	126922
	=	-0.004845

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.

PAL Group Holdings Co has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.

PAL Group Holdings Co Beneish M-Score Related Terms

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PAL Group Holdings Co (TSE:2726) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PAL Group Holdings Co Ltd (TSE:2726) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

3-6-1, Doshumachi, 10th floor, Keihanshin Midosuji Building, Chuo-ku, Osaka, JPN, 541-0041

Website

http://www.palgroup.co.jp

PAL Group Holdings Co Ltd is a holding company with subsidiaries that are manufacturers and retailers of women's clothing, men's clothing, and miscellaneous goods. The company's stores operate under dozens of brands, including Asoko, Beardsley, Capricieux Lemage, Chez toi, Ciaopanic, Colle, Discoat, Daily Russet, Dou Dou, CPCM, Lattice, Kastane, Mystic, 3 Coins, Who's Who, Goocy, Live Tart, Prose Verse, Loungedress, Omekashi, and Recette. PAL Group's brands have stores located in Japan and offer on-line ordering.

PAL Group Holdings Co (TSE:2726) Headlines

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