Allegro.EU (WAR:ALE) Beneish M-Score : -3.16 (As of May. 09, 2024)

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What is Allegro.EU 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 -3.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAR:ALE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.16 Med: -2.89 Max: -1.98
Current: -3.16

During the past 7 years, the highest Beneish M-Score of Allegro.EU was -1.98. The lowest was -3.16. And the median was -2.89.

Allegro.EU Beneish M-Score Historical Data

The historical data trend for Allegro.EU'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.

Allegro.EU Beneish M-Score Chart

Allegro.EU Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.98

-2.89

-3.16

Allegro.EU Quarterly Data
	Dec17	Dec18	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.89	-2.70	-3.27	-2.62	-3.16

Competitive Comparison of Allegro.EU's Beneish M-Score

For the Internet Retail subindustry, Allegro.EU'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.

Allegro.EU's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Allegro.EU's Beneish M-Score distribution charts can be found below:

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

Allegro.EU 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 Allegro.EU 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 * 0.7955

0.528 * 0.9489

0.404 * 0.9369

0.892 * 1.1311

0.115 * 1.221

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1215

4.679 * -0.121737

0.327 * 0.9777

-3.16

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was zł1,434 Mil.
Revenue was 3034.817 + 2431.8 + 2397.708 + 2321 = zł10,185 Mil.
Gross Profit was 2298.284 + 1964.3 + 1872.061 + 1728.6 = zł7,863 Mil.
Total Current Assets was zł4,014 Mil.
Total Assets was zł18,539 Mil.
Property, Plant and Equipment(Net PPE) was zł1,087 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1,624 Mil.
Selling, General, & Admin. Expense(SGA) was zł1,232 Mil.
Total Current Liabilities was zł2,268 Mil.
Long-Term Debt & Capital Lease Obligation was zł6,539 Mil.
Net Income was -233.642 + 241.7 + 118.954 + 157 = zł284 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0 Mil.
Cash Flow from Operations was 896.157 + 814.6 + 572.621 + 257.5 = zł2,541 Mil.

Total Receivables was zł1,594 Mil.
Revenue was 3082.916 + 2319.4 + 2210.056 + 1392.7 = zł9,005 Mil.
Gross Profit was 2045.284 + 1636 + 1607.406 + 1308.4 = zł6,597 Mil.
Total Current Assets was zł3,179 Mil.
Total Assets was zł19,206 Mil.
Property, Plant and Equipment(Net PPE) was zł1,169 Mil.
Depreciation, Depletion and Amortization(DDA) was zł3,183 Mil.
Selling, General, & Admin. Expense(SGA) was zł971 Mil.
Total Current Liabilities was zł2,313 Mil.
Long-Term Debt & Capital Lease Obligation was zł7,020 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)
	=	(1434.459 / 10185.325)	/	(1594.227 / 9005.072)
	=	0.140836	/	0.177037
	=	0.7955

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)
	=	(6597.09 / 9005.072)	/	(7863.245 / 10185.325)
	=	0.732597	/	0.772017
	=	0.9489

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 - (4013.966 + 1087.159) / 18538.803)	/	(1 - (3178.887 + 1168.876) / 19205.795)
	=	0.724841	/	0.773622
	=	0.9369

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
	=	10185.325	/	9005.072
	=	1.1311

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))
	=	(3182.724 / (3182.724 + 1168.876))	/	(1623.965 / (1623.965 + 1087.159))
	=	0.731392	/	0.599001
	=	1.221

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)
	=	(1231.811 / 10185.325)	/	(971.119 / 9005.072)
	=	0.12094	/	0.107841
	=	1.1215

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)
	=	((6539.281 + 2268.089) / 18538.803)	/	((7019.52 + 2312.601) / 19205.795)
	=	0.475078	/	0.485901
	=	0.9777

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
	=	(284.012 - 0	-	2540.878)	/	18538.803
	=	-0.121737

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.

Allegro.EU has a M-score of -3.16 suggests that the company is unlikely to be a manipulator.

Allegro.EU Beneish M-Score Related Terms

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Allegro.EU (WAR:ALE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Allegro.EU SA (WAR:ALE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ALEGF:USA 0A5O:UK AL0:Germany

Address

1, Rue Hildegard von Bingen, Luxembourg, LUX, L-1282

Website

https://www.allegro.eu

Allegro is a large Polish holding company with a suite of complementary online retail properties including Ceneo (price comparisons), EBilet (live events tickets), WeDo (courier services), and the Mall Group (online and offline retail in adjacent central European markets). The firm is best known for its eponymous e-commerce marketplace, which generates predominantly third-party product sales across the home and garden, electronics, health and beauty, automotive, and supermarket categories. The operator boasts nearly 50% share of the Polish e-commerce market by GMV, per our calculations and PWC data, and has built out a suite of ecosystem functionality that includes financial services, logistics, and advertising products.