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GuruFocus has detected 5 Warning Signs with Kimco Realty Corp $KIM.
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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.61 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Kimco Realty Corp has a M-score of -2.61 suggests that the company is not a manipulator.

KIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27   Max: -1.58
Current: -2.61

-3.27
-1.58

During the past 13 years, the highest Beneish M-Score of Kimco Realty Corp was -1.58. The lowest was -3.27. And the median was -2.51.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Kimco Realty Corp 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 * 1.0263+0.528 * 0.992+0.404 * 0.7507+0.892 * 1.0034+0.115 * 0.998
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9524+4.679 * -0.0152-0.327 * 0.9555
=-2.61

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $205 Mil.
Revenue was 297.026 + 285.076 + 291.488 + 297.202 = $1,171 Mil.
Gross Profit was 215.114 + 212.055 + 219.746 + 225.359 = $872 Mil.
Total Current Assets was $503 Mil.
Total Assets was $11,231 Mil.
Property, Plant and Equipment(Net PPE) was $9,730 Mil.
Depreciation, Depletion and Amortization(DDA) was $355 Mil.
Selling, General & Admin. Expense(SGA) was $117 Mil.
Total Current Liabilities was $270 Mil.
Long-Term Debt was $5,066 Mil.
Net Income was 78.273 + -43.545 + 203.409 + 140.713 = $379 Mil.
Non Operating Income was 1.598 + -41.793 + -1.656 + -0.17 = $-42 Mil.
Cash Flow from Operations was 147.57 + 228.679 + 78.891 + 136.956 = $592 Mil.
Accounts Receivable was $199 Mil.
Revenue was 300.87 + 288.382 + 294.061 + 283.456 = $1,167 Mil.
Gross Profit was 220.141 + 213.983 + 218.24 + 209.928 = $862 Mil.
Total Current Assets was $549 Mil.
Total Assets was $11,344 Mil.
Property, Plant and Equipment(Net PPE) was $9,453 Mil.
Depreciation, Depletion and Amortization(DDA) was $345 Mil.
Selling, General & Admin. Expense(SGA) was $123 Mil.
Total Current Liabilities was $265 Mil.
Long-Term Debt was $5,376 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(205.02 / 1170.792) / (199.076 / 1166.769)
=0.17511223 / 0.17062161
=1.0263

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)
=(862.292 / 1166.769) / (872.274 / 1170.792)
=0.7390426 / 0.74502901
=0.992

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (503.301 + 9729.783) / 11230.6) / (1 - (548.524 + 9453.489) / 11344.171)
=0.08882126 / 0.11831257
=0.7507

4. SGI = Sales Growth Index

Ratio of sales 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
=1170.792 / 1166.769
=1.0034

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(344.527 / (344.527 + 9453.489)) / (355.32 / (355.32 + 9729.783))
=0.03516294 / 0.03523216
=0.998

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(117.302 / 1170.792) / (122.735 / 1166.769)
=0.1001903 / 0.1051922
=0.9524

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5066.368 + 270.268) / 11230.6) / ((5376.31 + 265.241) / 11344.171)
=0.47518708 / 0.49730835
=0.9555

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
=(378.85 - -42.021 - 592.096) / 11230.6
=-0.0152

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Kimco Realty Corp has a M-score of -2.61 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Kimco Realty Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.31150.8711.20311.15462.07660.93130.73971.09770.68821.0263
GMI 00.98591.02530.99290.99460.98610.99491.00421.0010.992
AQI 0.65190.91720.98461.09960.93230.97850.94710.77730.80070.7507
SGI 1.14811.22261.00740.99520.98510.97411.08591.15361.17391.0034
DEPI 0.92690.97251.02570.86340.99120.97351.02411.04910.93170.998
SGAI 1.17020.91480.9231.01411.10381.06960.95030.8310.85560.9524
LVGI 1.49651.03360.8460.95741.02831.00381.01971.02351.05510.9555
TATA -0.031-0.031-0.0324-0.0343-0.0311-0.0219-0.0351-0.01950.0348-0.0153
M-score -4.00-2.59-2.36-2.47-1.71-2.70-2.83-2.41-2.53-2.61

Kimco Realty Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.76911.12211.16280.88780.89450.68820.69890.91180.94321.0263
GMI 1.00321.0031.0021.00180.99971.0010.99450.99050.98970.992
AQI 0.89310.77730.72240.7790.75710.80070.9260.83540.72880.7507
SGI 1.16151.12861.18971.21821.20971.17391.12521.07351.03911.0034
DEPI 1.0641.04911.14811.04710.95120.93170.79970.84360.97390.998
SGAI 0.870.84930.75810.75850.76850.85560.92020.9651.01380.9524
LVGI 1.03671.02351.08991.03831.05351.05510.94410.94540.92920.9555
TATA -0.0112-0.01950.00350.0086-0.00120.03480.02240.0330.0219-0.0152
M-score -2.62-2.41-2.23-2.40-2.48-2.53-2.56-2.41-2.49-2.61
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