Salhia Real Estate Co KSCP (KUW:SRE) Beneish M-Score : -2.46 (As of May. 24, 2024)

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What is Salhia Real Estate Co KSCP 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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Salhia Real Estate Co KSCP's Beneish M-Score or its related term are showing as below:

KUW:SRE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66 Med: -2.53 Max: 9.96
Current: -2.46

During the past 13 years, the highest Beneish M-Score of Salhia Real Estate Co KSCP was 9.96. The lowest was -3.66. And the median was -2.53.

Salhia Real Estate Co KSCP Beneish M-Score Historical Data

The historical data trend for Salhia Real Estate Co KSCP'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.

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Salhia Real Estate Co KSCP Beneish M-Score Chart

Salhia Real Estate Co KSCP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.75

-2.79

-1.59

-2.70

9.96

Salhia Real Estate Co KSCP Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-2.73	-2.68	9.96	-2.46

Competitive Comparison of Salhia Real Estate Co KSCP's Beneish M-Score

For the Real Estate Services subindustry, Salhia Real Estate Co KSCP'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.

Salhia Real Estate Co KSCP's Beneish M-Score Distribution in the Real Estate Industry

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

* The bar in red indicates where Salhia Real Estate Co KSCP's Beneish M-Score falls into.

Salhia Real Estate Co KSCP 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 Salhia Real Estate Co KSCP for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2017

0.528 * 0.9515

0.404 * 0.9892

0.892 * 1.1105

0.115 * 1.0946

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0532

4.679 * -0.045116

0.327 * 1.0906

-2.46

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was KWD10.72 Mil.
Revenue was 11.156 + 10.251 + 10.282 + 10.25 = KWD41.94 Mil.
Gross Profit was 8.41 + 8.294 + 8.409 + 7.633 = KWD32.75 Mil.
Total Current Assets was KWD18.00 Mil.
Total Assets was KWD522.12 Mil.
Property, Plant and Equipment(Net PPE) was KWD52.24 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD6.66 Mil.
Selling, General, & Admin. Expense(SGA) was KWD5.20 Mil.
Total Current Liabilities was KWD44.98 Mil.
Long-Term Debt & Capital Lease Obligation was KWD302.67 Mil.
Net Income was 2.866 + 3.732 + 5.07 + 3.45 = KWD15.12 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 17.152 + 7.457 + 5.926 + 8.139 = KWD38.67 Mil.

Total Receivables was KWD8.03 Mil.
Revenue was 9.804 + 9.706 + 9.073 + 9.184 = KWD37.77 Mil.
Gross Profit was 6.92 + 7.583 + 7.056 + 6.499 = KWD28.06 Mil.
Total Current Assets was KWD12.92 Mil.
Total Assets was KWD427.18 Mil.
Property, Plant and Equipment(Net PPE) was KWD40.52 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD5.72 Mil.
Selling, General, & Admin. Expense(SGA) was KWD4.44 Mil.
Total Current Liabilities was KWD47.06 Mil.
Long-Term Debt & Capital Lease Obligation was KWD213.75 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)
	=	(10.717 / 41.939)	/	(8.031 / 37.767)
	=	0.255538	/	0.212646
	=	1.2017

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)
	=	(28.058 / 37.767)	/	(32.746 / 41.939)
	=	0.742924	/	0.780801
	=	0.9515

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 - (17.995 + 52.236) / 522.12)	/	(1 - (12.923 + 40.515) / 427.175)
	=	0.865489	/	0.874904
	=	0.9892

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
	=	41.939	/	37.767
	=	1.1105

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))
	=	(5.719 / (5.719 + 40.515))	/	(6.655 / (6.655 + 52.236))
	=	0.123697	/	0.113005
	=	1.0946

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)
	=	(5.195 / 41.939)	/	(4.442 / 37.767)
	=	0.12387	/	0.117616
	=	1.0532

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)
	=	((302.673 + 44.981) / 522.12)	/	((213.746 + 47.06) / 427.175)
	=	0.665851	/	0.610537
	=	1.0906

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
	=	(15.118 - 0	-	38.674)	/	522.12
	=	-0.045116

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.

Salhia Real Estate Co KSCP has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Salhia Real Estate Co KSCP Beneish M-Score Related Terms

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Salhia Real Estate Co KSCP (KUW:SRE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Salhia Real Estate Co KSCP (KUW:SRE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Mohammed Thunayan Al-Ghanim Street, P.O. Box 23413, Salhia Complex, Safat, Kuwait City, KWT, 13095

Website

https://www.salhia.com

Salhia Real Estate Co KSC is engaged in real estate leasing and development of commercial properties and hotel operations in Kuwait and the United Kingdom. The company operates its business through three segments: Real Estate Operations, Hotel Operations, and Care Home Operations. Real Estate Operations being the highest revenue generator is engaged in the development and leasing of properties. Hotel Operations consist of the hotel hospitality services provided through JW Marriott Hotel - Kuwait; Courtyard Marriott Hotel-Kuwait; and Arraya Ballroom - Kuwait. Care Home Operations consist of care home activities provided by subsidiary companies. Its primary geographic markets are Kuwait & GCC and Europe.