Valens Semiconductor (Valens Semiconductor) Beneish M-Score : -3.05 (As of May. 17, 2024)

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What is Valens Semiconductor 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 -3.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

VLN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06 Med: -2.26 Max: -1.83
Current: -3.05

During the past 5 years, the highest Beneish M-Score of Valens Semiconductor was -1.83. The lowest was -3.06. And the median was -2.26.

Valens Semiconductor Beneish M-Score Historical Data

The historical data trend for Valens Semiconductor'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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Valens Semiconductor Beneish M-Score Chart

Valens Semiconductor Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.26

-2.22

Valens Semiconductor Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial											-2.35	-1.94	-3.06	-2.22	-3.05

Competitive Comparison of Valens Semiconductor's Beneish M-Score

For the Semiconductors subindustry, Valens Semiconductor'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.

Valens Semiconductor's Beneish M-Score Distribution in the Semiconductors Industry

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

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

Valens Semiconductor 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 Valens Semiconductor 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 * 0.9968

0.528 * 1.1293

0.404 * 1.4005

0.892 * 0.7727

0.115 * 0.6435

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1596

4.679 * -0.136492

0.327 * 0.6673

-3.05

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $9.91 Mil.
Revenue was 11.559 + 21.94 + 14.166 + 24.175 = $71.84 Mil.
Gross Profit was 6.815 + 13.527 + 8.338 + 14.934 = $43.61 Mil.
Total Current Assets was $166.17 Mil.
Total Assets was $171.28 Mil.
Property, Plant and Equipment(Net PPE) was $4.49 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.71 Mil.
Selling, General, & Admin. Expense(SGA) was $30.41 Mil.
Total Current Liabilities was $12.89 Mil.
Long-Term Debt & Capital Lease Obligation was $0.14 Mil.
Net Income was -10.042 + 2.79 + -12.492 + -4.582 = $-24.33 Mil.
Non Operating Income was 0.025 + -0.983 + 0.089 + -0.999 = $-1.87 Mil.
Cash Flow from Operations was -1.39 + -4.136 + 6.088 + 0.358 = $0.92 Mil.

Total Receivables was $12.86 Mil.
Revenue was 23.88 + 23.473 + 23.141 + 22.481 = $92.98 Mil.
Gross Profit was 15.793 + 16.03 + 16.136 + 15.784 = $63.74 Mil.
Total Current Assets was $181.55 Mil.
Total Assets was $188.70 Mil.
Property, Plant and Equipment(Net PPE) was $6.66 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.44 Mil.
Selling, General, & Admin. Expense(SGA) was $33.93 Mil.
Total Current Liabilities was $20.18 Mil.
Long-Term Debt & Capital Lease Obligation was $1.34 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)
	=	(9.907 / 71.84)	/	(12.863 / 92.975)
	=	0.137904	/	0.138349
	=	0.9968

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)
	=	(63.743 / 92.975)	/	(43.614 / 71.84)
	=	0.685593	/	0.607099
	=	1.1293

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 - (166.165 + 4.489) / 171.277)	/	(1 - (181.551 + 6.657) / 188.698)
	=	0.003637	/	0.002597
	=	1.4005

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
	=	71.84	/	92.975
	=	0.7727

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))
	=	(1.436 / (1.436 + 6.657))	/	(1.709 / (1.709 + 4.489))
	=	0.177437	/	0.275734
	=	0.6435

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)
	=	(30.405 / 71.84)	/	(33.934 / 92.975)
	=	0.423232	/	0.36498
	=	1.1596

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)
	=	((0.14 + 12.893) / 171.277)	/	((1.339 + 20.18) / 188.698)
	=	0.076093	/	0.114039
	=	0.6673

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
	=	(-24.326 - -1.868	-	0.92)	/	171.277
	=	-0.136492

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.

Valens Semiconductor has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.

Valens Semiconductor Beneish M-Score Related Terms

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Valens Semiconductor (Valens Semiconductor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Valens Semiconductor Ltd (NYSE:VLN) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

8 Hanagar Street, PO Box 7152, Hod Hasharon, ISR, 4501309

Website

https://www.valens.com

Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Audio-Video, which includes the company's HDBaseT solutions for the Audio-Video market deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical segments include Israel, China, Hong Kong, the United States, Mexico, Japan, and Others.