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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

KIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.98   Max: -1.15
Current: -2.5

-3.98
-1.15

During the past 13 years, the highest Beneish M-Score of Kimco Realty Corp was -1.15. The lowest was -3.98. And the median was -2.64.


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 * 0.8945+0.528 * 0.9997+0.404 * 0.7571+0.892 * 1.2097+0.115 * 0.9512
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7685+4.679 * -0.0059-0.327 * 1.0535
=-2.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $199 Mil.
Revenue was 288.382 + 294.061 + 283.456 + 264.513 = $1,130 Mil.
Gross Profit was 213.983 + 218.24 + 209.928 + 193.418 = $836 Mil.
Total Current Assets was $392 Mil.
Total Assets was $11,414 Mil.
Property, Plant and Equipment(Net PPE) was $9,414 Mil.
Depreciation, Depletion and Amortization(DDA) was $332 Mil.
Selling, General & Admin. Expense(SGA) was $117 Mil.
Total Current Liabilities was $111 Mil.
Long-Term Debt was $5,499 Mil.
Net Income was 77.572 + 127 + 310.342 + 52.781 = $568 Mil.
Non Operating Income was 1.06 + 1.386 + 0.151 + -3.652 = $-1 Mil.
Cash Flow from Operations was 177.839 + 122.905 + 216.54 + 119.338 = $637 Mil.
Accounts Receivable was $184 Mil.
Revenue was 255.234 + 245.958 + 228.193 + 205.084 = $934 Mil.
Gross Profit was 189.644 + 182.757 + 169.462 + 148.664 = $691 Mil.
Total Current Assets was $415 Mil.
Total Assets was $10,293 Mil.
Property, Plant and Equipment(Net PPE) was $7,963 Mil.
Depreciation, Depletion and Amortization(DDA) was $266 Mil.
Selling, General & Admin. Expense(SGA) was $126 Mil.
Total Current Liabilities was $105 Mil.
Long-Term Debt was $4,697 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)
=(198.965 / 1130.412) / (183.882 / 934.469)
=0.17601105 / 0.19677699
=0.8945

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)
=(218.24 / 934.469) / (213.983 / 1130.412)
=0.73895121 / 0.73917209
=0.9997

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 - (392.067 + 9414.247) / 11413.984) / (1 - (415.195 + 7963.001) / 10293.211)
=0.14085091 / 0.18604641
=0.7571

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
=1130.412 / 934.469
=1.2097

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))
=(266.349 / (266.349 + 7963.001)) / (331.611 / (331.611 + 9414.247))
=0.03236574 / 0.03402584
=0.9512

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)
=(116.998 / 1130.412) / (125.848 / 934.469)
=0.10350032 / 0.13467327
=0.7685

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)
=((5498.586 + 111.48) / 11413.984) / ((4697.317 + 104.858) / 10293.211)
=0.49150814 / 0.46653809
=1.0535

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
=(567.695 - -1.055 - 636.622) / 11413.984
=-0.0059

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 -2.50 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 own currency.

Kimco Realty Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.31150.8711.20311.15462.07660.93130.73971.09770.6882
GMI 00.98591.02530.99290.99460.98610.99491.00420.8569
AQI 0.65190.91720.98461.09960.93230.97850.94710.77540.8937
SGI 1.14811.22261.00740.99520.98510.97411.08591.15361.1739
DEPI 0.92690.97251.02570.86340.99120.97351.02411.04910.9317
SGAI 1.17020.91480.9231.01411.10381.06960.95030.8310.8556
LVGI 1.49651.03360.8460.95741.02831.00381.01971.02620.7231
TATA -0.0234-0.031-0.0324-0.0343-0.0311-0.0219-0.0351-0.01940.0784
M-score -3.96-2.59-2.36-2.47-1.71-2.70-2.83-2.41-2.26

Kimco Realty Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.90840.73170.70170.70830.76911.12211.16280.88780.89450.6882
GMI 1.0050.99440.99790.99781.00321.0031.0021.00180.99970.9566
AQI 0.95630.94710.90740.87030.89310.77540.72240.7790.75710.8937
SGI 0.95711.09771.0951.11761.16151.12861.18971.21821.20971.1739
DEPI 1.01181.02411.01261.05311.0641.04911.14811.04710.95120.9317
SGAI 1.05290.93990.96820.92710.870.84930.75810.75850.76850.8556
LVGI 1.38041.01971.33541.22911.03671.02621.08991.03831.05350.7231
TATA -0.0345-0.0351-0.0359-0.0337-0.0112-0.0194-0.00110.0039-0.00590.0328
M-score -2.91-2.82-2.98-2.91-2.62-2.41-2.25-2.42-2.50-2.42
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