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UVSP (Univest Financial) Beneish M-Score : -2.44 (As of Oct. 31, 2024)


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What is Univest Financial Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

UVSP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.43   Max: -2.2
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Univest Financial was -2.20. The lowest was -3.50. And the median was -2.43.


Univest Financial 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 Univest Financial 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 * 1.0851+0.528 * 1+0.404 * 1.0012+0.892 * 0.9545+0.115 * 0.4416
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0652+4.679 * -0.000206-0.327 * 0.7713
=-2.44

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $246.5 Mil.
Revenue was 73.354 + 72.007 + 77.062 + 71.38 = $293.8 Mil.
Gross Profit was 73.354 + 72.007 + 77.062 + 71.38 = $293.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $8,205.7 Mil.
Property, Plant and Equipment(Net PPE) was $76.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.6 Mil.
Selling, General, & Admin. Expense(SGA) was $128.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $406.4 Mil.
Net Income was 18.578 + 18.107 + 20.305 + 16.254 = $73.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 38.905 + -3.411 + 11.568 + 27.874 = $74.9 Mil.
Total Receivables was $238.0 Mil.
Revenue was 72.281 + 74.163 + 78.997 + 82.374 = $307.8 Mil.
Gross Profit was 72.281 + 74.163 + 78.997 + 82.374 = $307.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,828.1 Mil.
Property, Plant and Equipment(Net PPE) was $82.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.9 Mil.
Selling, General, & Admin. Expense(SGA) was $126.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $502.7 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)
=(246.463 / 293.803) / (237.96 / 307.815)
=0.838872 / 0.773062
=1.0851

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)
=(307.815 / 307.815) / (293.803 / 293.803)
=1 / 1
=1

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 - (0 + 76.671) / 8205.737) / (1 - (0 + 82.34) / 7828.066)
=0.990656 / 0.989481
=1.0012

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
=293.803 / 307.815
=0.9545

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))
=(3.851 / (3.851 + 82.34)) / (8.63 / (8.63 + 76.671))
=0.04468 / 0.101171
=0.4416

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)
=(128.481 / 293.803) / (126.365 / 307.815)
=0.437303 / 0.410523
=1.0652

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)
=((406.382 + 0) / 8205.737) / ((502.653 + 0) / 7828.066)
=0.049524 / 0.064212
=0.7713

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
=(73.244 - 0 - 74.936) / 8205.737
=-0.000206

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.

Univest Financial has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


Univest Financial Beneish M-Score Related Terms

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Univest Financial Business Description

Traded in Other Exchanges
N/A
Address
14 North Main Street, Souderton, PA, USA, 18964
Univest Financial Corp is engaged in domestic banking services for individuals, businesses, municipalities and non-profit organizations. The bank has three operating segments; Banking segment provides financial services including a full range of banking services such as deposit taking, loan origination, and servicing, mortgage banking, other general banking services, and equipment lease financing, Wealth Management segment offers investment advisory, financial planning, trust and brokerage services, and The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefits solutions, personal insurance lines and human resources consulting. It generates majority of its revenue from the banking segment.
Executives
Jeffrey M Schweitzer officer: EVP & CFO 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Michael S Keim officer: EVP & CFO 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Natalye Paquin director 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Brian Jason Richardson officer: EVP & CFO 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Martin P. Connor director 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Todd S Benning director 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Thomas M Petro director 14 NORTH MAIN STREET, PO BOX197, SOUDERTON PA 18964
Robert C Wonderling director 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
William S Aichele director, officer: Director and President & CEO 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Roger H Ballou director C/O CDI CORP, 1717 ARCH ST 35TH FL, PHILADELPHIA PA 19103
Patrick C Mccormick officer: EVP & Chief Credit Officer 14 NORTH MAIN ST, PO BOX 197, SOUDERTON PA 18964
Duane J Brobst officer: Executive VP 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
K Leon Moyer officer: Senior Executive Vice Presiden 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Joseph P Beebe director 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964
Glenn E Moyer director 14 NORTH MAIN STREET, PO BOX 197, SOUDERTON PA 18964