New England Realty Associates LP (New England Realty Associates LP) Beneish M-Score

: -2.42 (As of Today)

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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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for New England Realty Associates LP's Beneish M-Score or its related term are showing as below:

NEN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.61 Max: -1.76
Current: -2.42

During the past 13 years, the highest Beneish M-Score of New England Realty Associates LP was -1.76. The lowest was -3.20. And the median was -2.61.

New England Realty Associates LP Beneish M-Score Historical Data

The historical data trend for New England Realty Associates LP'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.

New England Realty Associates LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-3.00

-1.76

-2.85

-2.34

-2.42

New England Realty Associates LP 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																-2.34	-2.17	-2.52	-2.35	-2.42

Competitive Comparison

For the Real Estate Services subindustry, New England Realty Associates LP'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.

New England Realty Associates LP Beneish M-Score Distribution

For the Real Estate industry and Real Estate sector, New England Realty Associates LP's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where New England Realty Associates LP's Beneish M-Score falls into.

New England Realty Associates LP 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 New England Realty Associates LP 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 * 1.1229

0.528 * 1.0215

0.404 * 1.1426

0.892 * 1.0906

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0625

4.679 * -0.040775

0.327 * 1.0122

-2.42

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $3.18 Mil.
Revenue was 19.727 + 18.962 + 18.101 + 17.692 = $74.48 Mil.
Gross Profit was 12.949 + 11.97 + 11.533 + 11.76 = $48.21 Mil.
Total Current Assets was $112.94 Mil.
Total Assets was $385.73 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.77 Mil.
Selling, General, & Admin. Expense(SGA) was $3.91 Mil.
Total Current Liabilities was $32.43 Mil.
Long-Term Debt & Capital Lease Obligation was $408.66 Mil.
Net Income was 2.299 + 2.175 + 2.225 + 1.754 = $8.45 Mil.
Non Operating Income was -0.591 + 0.149 + 0.212 + 0.228 = $-0.00 Mil.
Cash Flow from Operations was 7.882 + 8.133 + 5.788 + 2.38 = $24.18 Mil.

Total Receivables was $2.60 Mil.
Revenue was 17.703 + 17.078 + 16.932 + 16.58 = $68.29 Mil.
Gross Profit was 11.856 + 10.965 + 10.985 + 11.351 = $45.16 Mil.
Total Current Assets was $149.31 Mil.
Total Assets was $391.82 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.37 Mil.
Selling, General, & Admin. Expense(SGA) was $3.37 Mil.
Total Current Liabilities was $31.69 Mil.
Long-Term Debt & Capital Lease Obligation was $410.97 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)
	=	(3.183 / 74.482)	/	(2.599 / 68.293)
	=	0.042735	/	0.038057
	=	1.1229

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)
	=	(45.157 / 68.293)	/	(48.212 / 74.482)
	=	0.661224	/	0.647297
	=	1.0215

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 - (112.935 + 0) / 385.731)	/	(1 - (149.306 + 0) / 391.82)
	=	0.707218	/	0.618942
	=	1.1426

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
	=	74.482	/	68.293
	=	1.0906

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))
	=	(16.374 / (16.374 + 0))	/	(16.773 / (16.773 + 0))
	=	1	/	1
	=	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)
	=	(3.905 / 74.482)	/	(3.37 / 68.293)
	=	0.052429	/	0.049346
	=	1.0625

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)
	=	((408.66 + 32.428) / 385.731)	/	((410.966 + 31.691) / 391.82)
	=	1.143512	/	1.129746
	=	1.0122

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
	=	(8.453 - -0.002	-	24.183)	/	385.731
	=	-0.040775

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.

New England Realty Associates LP has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.

New England Realty Associates LP Beneish M-Score Related Terms

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New England Realty Associates LP (New England Realty Associates LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » New England Realty Associates LP (AMEX:NEN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

39 Brighton Avenue, Allston, MA, USA, 02134

Website

https://www.thehamiltoncompany.com

New England Realty Associates LP is engaged in the business of acquiring, developing, holding for investment, operating and selling real estate. The Partnership owns and operates various residential apartments, condominium units and commercial properties located in Massachusetts and New Hampshire. The company generates revenue from rental income from residential and commercial properties recognized over the term of the related lease. The long-term goals of the Partnership are to manage, rent and improve its properties and to acquire additional properties with income and capital appreciation potential as suitable opportunities arise.

Executives

Jameson Pruitt Brown	director, officer: Treasurer	NEW ENGLAND REALTY ASSOCIATES LP, 39 BRIGHTON AVENUE, ALLSTON MA 02360
Ronald Brown	officer: President	NEW ENGLAND REALTY ASSOCIATES LP, 39 BRIGHTON AVENUE, ALLSTON MA 02134
Carl Anthony Valeri	other: 5% Owner, Asset Manager	50 UDINE STREET, ARLINGTON MA 02476
Harold Brown	director, 10 percent owner, officer: Treas. & Dir. of Gen. Ptnr NEN	39 BRIGHTON AVE, ALLSTON MA 02134
1999 Revocable Trust	10 percent owner	C/O NEW ENGLAND REALTY ASSOCIATES LP, 39 BRIGHTON AVENUE, ALLSTON MA 02025
Nera 1994 Irrevocable Trust	10 percent owner, officer: Treasurer	C/O LANE AITMAN & OWENS, 101 FEDERAL STREET, BOSTON MA 02110
David R Jarvis	10 percent owner	C/O MERCURY REAL ESTATE ADVISORS LLC, 100 FIELD POINT ROAD, GREENWICH CT 06830
Mercury Real Estate Securities Offshore Fund, Ltd.	10 percent owner	100 FIELD POINT ROAD, GREENWICH CT 06830
Silvercreek Sav Llc	10 percent owner	C/O MERCURY REAL ESTATE ADVISORS LLC, 100 FIELD POINT ROAD, GREENWICH CT 06830
Mercury Special Situations Offshore Fund Ltd	10 percent owner	P O BOX 3460 RD TOWN, TORTOLA BVI E9 00000
Maclean Malcolm F Iv	10 percent owner	C/O ASPEN GROUP, INC., 1660 SOUTH ALBION STREET, SUITE 525, DENVER CO 80222
Mercury Real Estate Securities Fund Lp	10 percent owner	100 FIELD POINT ROAD, GREENWICH CT 06830
Mercury Mayfair Llc	10 percent owner	100 FIELD POINT ROAD, FIRST FLOOR, GREENWICH CT 06830
Mercury Special Situations Fund L P	10 percent owner	100 FIELD POINT RD, GREENWICH CT 06830
Mercury Securities Ii Llc	10 percent owner	100 FIELD POINT ROAD, FIRST FLOOR, GREENWICH CT 06830