COMSovereign Holding Corp.
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COMSovereign Holding Corp. (COMS) Beneish M-score
COMSovereign Holding Corp.'s Beneish M-score for fiscal 2022 is −15.62; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2022 | −15.62 | (7.54) |
| FY2021 | −8.07 | (0.89) |
| FY2018 | −7.19 | 7.44 |
| FY2017 | −14.63 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.18 | — | 1.09 | |
| Gross margin index | 2.14 | — | 1.13 | |
| Asset quality index | 0.77 | — | 0.31 | |
| Sales growth index | 1.09 | — | 0.97 | |
| Depreciation index | 0.67 | — | 0.08 | |
| SG&A index | 0.64 | — | −0.11 | |
| Total accruals to total assets | (2.85) | — | −13.32 | |
| Leverage index | 2.82 | — | −0.92 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −15.62 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| COMS COMSovereign Holding Corp. | −15.6× |
| PCLA PicoCELA Inc. compare | −3.8× |
| CABO Cable One, Inc. compare | −3.3× |
| IQST iQSTEL Inc. compare | −3.1× |
| UCL uCloudlink Group Inc. Sponsored ADR compare | −2.8× |
| IOTR iOThree Limited compare | −1.9× |
| FNGR FingerMotion, Inc. compare | −1.2× |
| ELWT Elauwit Connection, Inc. compare | −1.1× |
| SURG SurgePays, Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI