DermTech, Inc.
DMTKQ Healthcare Diagnostics & Research
DermTech, Inc.’s revenue for fiscal 2023 (year ended December 2023) was $15.3 million, up 5.36% from fiscal 2022. Revenue growth for five consecutive years, operating cash flow growth for three.
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DermTech, Inc. (DMTKQ) Beneish M-score
DermTech, Inc.'s Beneish M-score for fiscal 2023 is −2.88; 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) |
|---|---|---|
| FY2023 | −2.88 | (2.82) |
| FY2022 | −0.06 | (4.96) |
| FY2021 | 4.90 | 10.57 |
| FY2019 | −5.67 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.59 | — | 0.54 | |
| Gross margin index | 2.47 | — | 1.30 | |
| Asset quality index | 1.53 | — | 0.62 | |
| Sales growth index | 1.05 | — | 0.94 | |
| Depreciation index | 0.84 | — | 0.10 | |
| SG&A index | 0.89 | — | −0.15 | |
| Total accruals to total assets | (0.20) | — | −0.92 | |
| Leverage index | 1.42 | — | −0.47 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.88 | ||
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 |
|---|---|
| AWHL Aspira Women's Health Inc. compare | −7.1× |
| XWEL XWELL, Inc. compare | −6.4× |
| BIAF bioAffinity Technologies, Inc. compare | −5.5× |
| DMTKQ DermTech, Inc. | −2.9× |
| NOTVQ Inotiv, Inc. compare | −2.8× |
| ISPC iSpecimen Inc. compare | 10.1× |
| ADVB Advanced Biomed Inc. compare | — |
| TTOO T2 Biosystems, Inc. compare | — |
| NDRA ENDRA Life Sciences 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