Novavest Real Estate AG (XSWX:NREN) Beneish M-Score : -2.49 (As of May. 13, 2024)

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What is Novavest Real Estate AG 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XSWX:NREN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.49 Med: -2.23 Max: -0.51
Current: -2.49

During the past 11 years, the highest Beneish M-Score of Novavest Real Estate AG was -0.51. The lowest was -2.49. And the median was -2.23.

Novavest Real Estate AG Beneish M-Score Historical Data

The historical data trend for Novavest Real Estate AG'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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Novavest Real Estate AG Beneish M-Score Chart

Novavest Real Estate AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.23

-2.02

-2.33

-2.42

-2.49

Novavest Real Estate AG Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial													-2.33	-	-2.42	-	-2.49

Competitive Comparison of Novavest Real Estate AG's Beneish M-Score

For the Real Estate - Diversified subindustry, Novavest Real Estate AG'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.

Novavest Real Estate AG's Beneish M-Score Distribution in the Real Estate Industry

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

* The bar in red indicates where Novavest Real Estate AG's Beneish M-Score falls into.

Novavest Real Estate AG 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 Novavest Real Estate AG 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 * 1.046

0.528 * 1.0081

0.404 * 1.0205

0.892 * 1.024

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8853

4.679 * -0.0224

0.327 * 1.0084

-2.49

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was CHF6.08 Mil.
Revenue was CHF29.86 Mil.
Gross Profit was CHF24.67 Mil.
Total Current Assets was CHF8.64 Mil.
Total Assets was CHF793.71 Mil.
Property, Plant and Equipment(Net PPE) was CHF0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF0.00 Mil.
Selling, General, & Admin. Expense(SGA) was CHF3.87 Mil.
Total Current Liabilities was CHF97.62 Mil.
Long-Term Debt & Capital Lease Obligation was CHF341.63 Mil.
Net Income was CHF-3.97 Mil.
Gross Profit was CHF0.00 Mil.
Cash Flow from Operations was CHF13.81 Mil.

Total Receivables was CHF5.68 Mil.
Revenue was CHF29.16 Mil.
Gross Profit was CHF24.29 Mil.
Total Current Assets was CHF25.29 Mil.
Total Assets was CHF823.24 Mil.
Property, Plant and Equipment(Net PPE) was CHF0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF0.00 Mil.
Selling, General, & Admin. Expense(SGA) was CHF4.27 Mil.
Total Current Liabilities was CHF145.46 Mil.
Long-Term Debt & Capital Lease Obligation was CHF306.34 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)
	=	(6.08 / 29.86)	/	(5.676 / 29.159)
	=	0.203617	/	0.194657
	=	1.046

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)
	=	(24.286 / 29.159)	/	(24.67 / 29.86)
	=	0.832882	/	0.826189
	=	1.0081

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 - (8.639 + 0) / 793.705)	/	(1 - (25.291 + 0) / 823.24)
	=	0.989116	/	0.969279
	=	1.0205

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
	=	29.86	/	29.159
	=	1.024

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(3.871 / 29.86)	/	(4.27 / 29.159)
	=	0.129638	/	0.146438
	=	0.8853

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)
	=	((341.627 + 97.616) / 793.705)	/	((306.343 + 145.462) / 823.24)
	=	0.553408	/	0.548813
	=	1.0084

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
	=	(-3.969 - 0	-	13.81)	/	793.705
	=	-0.0224

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.

Novavest Real Estate AG has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

Novavest Real Estate AG Beneish M-Score Related Terms

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Novavest Real Estate AG (XSWX:NREN) Business Description

Industry

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NRENz:UK

Address

Feldeggstrasse 26, Zurich, CHE, 8008

Website

https://www.novavest.ch

Novavest Real Estate AG is a Swiss real estate company. It is engaged in construction, acquisition, sale, holding, conversion and management of all types of real estate in theSwitzerland. The company manages and develops properties for residential use, office and commercial use as well as on new construction projects.

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