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JBT Marel earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score31 / 100 · grade E · rank 1007 of 1027

JBT Marel (JBTM) scores 31 of 100 for earnings quality, grade E: rank 1007 of 1027 companies and 277 of 287 in industrials. It loses the most points on Dechow F-score 4.09 (high), Montier C-score 4 of 5 checks failed, adjusted earnings 51% below GAAP. It earns full or near-full marks for profit about as variable as cash flow (smoothness 1.99).

What earned and lost points

ComponentWhat the filings showPointsOf
Dechow F-scoreDechow F-score 4.09 (high)027
Montier C-scoreMontier C-score 4 of 5 checks failed627
Discretionary accrualsdiscretionary accruals of +0.6% of assets (modified Jones), smaller than most1618
Non-GAAP gapadjusted earnings 51% below GAAP018
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.99)99
JBTM: share of the available points, by componentJBTM: share of the available points, by componentDiscretionary accruals89%Montier C-score20%Earnings smoothness100%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

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Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.