Stack Capital Group (TSX:STCK) Beneish M-Score : -0.85 (As of May. 26, 2024)

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What is Stack Capital 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.

Warning Sign:

Beneish M-Score -0.85 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSX:STCK' s Beneish M-Score Range Over the Past 10 Years
Min: -0.85 Med: 3.65 Max: 4.04
Current: -0.85

During the past 3 years, the highest Beneish M-Score of Stack Capital Group was 4.04. The lowest was -0.85. And the median was 3.65.

Stack Capital Group Beneish M-Score Historical Data

The historical data trend for Stack Capital 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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Stack Capital Group Beneish M-Score Chart

Stack Capital Group Annual Data

Trend

Dec21

Dec22

Dec23

Beneish M-Score

0.41

Stack Capital Group Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial								4.04	4.00	3.65	0.41	-0.85

Competitive Comparison of Stack Capital Group's Beneish M-Score

For the Asset Management subindustry, Stack Capital 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.

Stack Capital Group's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Stack Capital Group's Beneish M-Score distribution charts can be found below:

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

Stack Capital 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 Stack Capital 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 * 1

0.528 * 2.6031

0.404 * 1.2359

0.892 * 1.2482

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.788

4.679 * 0.131588

0.327 * 1.5802

-0.85

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$0.00 Mil.
Revenue was 0.321 + 0.335 + 0.353 + 0.344 = C$1.35 Mil.
Gross Profit was -0.095 + -0.092 + -0.071 + -0.081 = C$-0.34 Mil.
Total Current Assets was C$14.21 Mil.
Total Assets was C$101.31 Mil.
Property, Plant and Equipment(Net PPE) was C$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.38 Mil.
Total Current Liabilities was C$0.50 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.
Net Income was 1.563 + -3.635 + 1.023 + -0.636 = C$-1.69 Mil.
Non Operating Income was 1.975 + -1.65 + 0.967 + -0.896 = C$0.40 Mil.
Cash Flow from Operations was -11.05 + -0.266 + -2.225 + -1.871 = C$-15.41 Mil.

Total Receivables was C$0.00 Mil.
Revenue was 0.338 + 0.358 + 0.253 + 0.135 = C$1.08 Mil.
Gross Profit was -0.092 + -0.089 + -0.204 + -0.322 = C$-0.71 Mil.
Total Current Assets was C$30.72 Mil.
Total Assets was C$100.91 Mil.
Property, Plant and Equipment(Net PPE) was C$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.40 Mil.
Total Current Liabilities was C$0.31 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 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)
	=	(0 / 1.353)	/	(0 / 1.084)
	=	0	/	0
	=	1

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)
	=	(-0.707 / 1.084)	/	(-0.339 / 1.353)
	=	-0.652214	/	-0.250554
	=	2.6031

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 - (14.211 + 0) / 101.309)	/	(1 - (30.717 + 0) / 100.91)
	=	0.859726	/	0.6956
	=	1.2359

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
	=	1.353	/	1.084
	=	1.2482

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(1.379 / 1.353)	/	(1.402 / 1.084)
	=	1.019217	/	1.293358
	=	0.788

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)
	=	((0 + 0.495) / 101.309)	/	((0 + 0.312) / 100.91)
	=	0.004886	/	0.003092
	=	1.5802

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
	=	(-1.685 - 0.396	-	-15.412)	/	101.309
	=	0.131588

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.

Stack Capital Group has a M-score of -0.85 signals that the company is likely to be a manipulator.

Stack Capital Group Beneish M-Score Related Terms

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Stack Capital Group (TSX:STCK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Stack Capital Group Inc (TSX:STCK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

STCGF:USA

Address

155 Wellington Street West, Suite 3140, Toronto, ON, CAN, M5V 3H1

Website

https://www.stackcapitalgroup.com

Stack Capital Group Inc is a newly formed investment holding company. It is focused on investing in growth to late-stage private issuers with operating businesses, with long-term growth potential, located in, or with customers, suppliers or business primarily conducted in or dependent on, Canada or the United States. Its business objective is to maximize its long-term capital appreciation by seeking to achieve superior risk-adjusted investment performance.

Executives

Jeffrey Parks	Director, Senior Officer
Jason Meiers	Senior Officer

Stack Capital Group (TSX:STCK) Headlines

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