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Altus Group (Altus Group) Beneish M-Score : -2.70 (As of Apr. 29, 2024)


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What is Altus Group 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASGTF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83   Med: -2.66   Max: -2.34
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Altus Group was -2.34. The lowest was -2.83. And the median was -2.66.


Altus Group Beneish M-Score Historical Data

The historical data trend for Altus Group'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.

Altus Group Beneish M-Score Chart

Altus Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.61 -2.66 -2.34 -2.53 -2.70

Altus Group Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.53 -2.33 -2.32 -2.50 -2.70

Competitive Comparison of Altus Group's Beneish M-Score

For the Real Estate Services subindustry, Altus Group'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.


Altus Group's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Altus Group's Beneish M-Score distribution charts can be found below:

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



Altus Group 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 Altus Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9812+0.528 * 1+0.404 * 1.0211+0.892 * 1.0205+0.115 * 0.9007
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9886+4.679 * -0.047096-0.327 * 0.9652
=-2.69

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $193.8 Mil.
Revenue was 142.795 + 136.895 + 154.458 + 139.461 = $573.6 Mil.
Gross Profit was 142.795 + 136.895 + 154.458 + 139.461 = $573.6 Mil.
Total Current Assets was $225.5 Mil.
Total Assets was $905.4 Mil.
Property, Plant and Equipment(Net PPE) was $33.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.0 Mil.
Selling, General, & Admin. Expense(SGA) was $363.3 Mil.
Total Current Liabilities was $162.7 Mil.
Long-Term Debt & Capital Lease Obligation was $254.3 Mil.
Net Income was -0.104 + 0.687 + 8.924 + -1.764 = $7.7 Mil.
Non Operating Income was -5.725 + -0.815 + 4.237 + -0.935 = $-3.2 Mil.
Cash Flow from Operations was 33.313 + 26.62 + 16.332 + -22.643 = $53.6 Mil.
Total Receivables was $193.5 Mil.
Revenue was 135.268 + 133.212 + 161.211 + 132.373 = $562.1 Mil.
Gross Profit was 135.268 + 133.212 + 161.211 + 132.373 = $562.1 Mil.
Total Current Assets was $235.5 Mil.
Total Assets was $930.4 Mil.
Property, Plant and Equipment(Net PPE) was $44.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.5 Mil.
Selling, General, & Admin. Expense(SGA) was $360.1 Mil.
Total Current Liabilities was $176.6 Mil.
Long-Term Debt & Capital Lease Obligation was $267.4 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)
=(193.794 / 573.609) / (193.535 / 562.064)
=0.33785 / 0.344329
=0.9812

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)
=(562.064 / 562.064) / (573.609 / 573.609)
=1 / 1
=1

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 - (225.524 + 33.579) / 905.406) / (1 - (235.464 + 44.501) / 930.354)
=0.713827 / 0.699077
=1.0211

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
=573.609 / 562.064
=1.0205

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))
=(45.528 / (45.528 + 44.501)) / (42.988 / (42.988 + 33.579))
=0.505704 / 0.561443
=0.9007

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)
=(363.262 / 573.609) / (360.058 / 562.064)
=0.633292 / 0.6406
=0.9886

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)
=((254.328 + 162.698) / 905.406) / ((267.418 + 176.562) / 930.354)
=0.460596 / 0.477216
=0.9652

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
=(7.743 - -3.238 - 53.622) / 905.406
=-0.047096

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.

Altus Group has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.


Altus Group Beneish M-Score Related Terms

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Altus Group (Altus Group) Business Description

Traded in Other Exchanges
Address
33 Yonge Street, Suite 500, Toronto, ON, CAN, M5E 1G4
Altus Group Ltd operates in the Canadian real estate sector. Its services can be summed up as advisory services, software and data solutions to the property and real estate industry. The company has three reportable segments namely Property Tax, Analytics; and under CRE Consulting services, and Appraisals and Development Advisory. It generates maximum revenue from the Analytics; and under CRE Consulting services segment. A part of its revenue is also derived from the United States, Europe, and the Asia Pacific.

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