AMHPG.PFD (American Homes 4 Rent) Beneish M-Score : -2.81 (As of Dec. 14, 2024)

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What is American Homes 4 Rent 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for American Homes 4 Rent's Beneish M-Score or its related term are showing as below:

AMHpG.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12 Med: -2.5 Max: -1.49
Current: -2.81

During the past 13 years, the highest Beneish M-Score of American Homes 4 Rent was -1.49. The lowest was -3.12. And the median was -2.50.

American Homes 4 Rent Beneish M-Score Historical Data

The historical data trend for American Homes 4 Rent'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.

American Homes 4 Rent Beneish M-Score Chart

American Homes 4 Rent Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.56

-2.52

-2.74

-2.97

-2.78

American Homes 4 Rent Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.61	-2.78	-2.79	-2.81	-2.81

Competitive Comparison of American Homes 4 Rent's Beneish M-Score

For the REIT - Residential subindustry, American Homes 4 Rent'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.

American Homes 4 Rent's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Homes 4 Rent's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Beneish M-Score falls into.

American Homes 4 Rent 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 American Homes 4 Rent 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 * 0.8524

0.528 * 0.9853

0.404 * 0.9952

0.892 * 1.0657

0.115 * 0.9932

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0735

4.679 * -0.048773

0.327 * 1.0045

-2.81

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $50.41 Mil.
Revenue was 445.055 + 423.494 + 423.555 + 408.657 = $1,700.76 Mil.
Gross Profit was 241.051 + 241.642 + 236.226 + 234.748 = $953.67 Mil.
Total Current Assets was $368.26 Mil.
Total Assets was $12,844.29 Mil.
Property, Plant and Equipment(Net PPE) was $14.43 Mil.
Depreciation, Depletion and Amortization(DDA) was $468.79 Mil.
Selling, General, & Admin. Expense(SGA) was $81.31 Mil.
Total Current Liabilities was $488.99 Mil.
Long-Term Debt & Capital Lease Obligation was $4,534.84 Mil.
Net Income was 77.307 + 95.628 + 112.775 + 80.103 = $365.81 Mil.
Non Operating Income was 29.138 + 44.866 + 68.057 + 25.538 = $167.60 Mil.
Cash Flow from Operations was 233.568 + 274 + 201.78 + 115.315 = $824.66 Mil.

Total Receivables was $55.49 Mil.
Revenue was 421.697 + 395.548 + 397.703 + 380.926 = $1,595.87 Mil.
Gross Profit was 223.871 + 222.329 + 219.835 + 215.656 = $881.69 Mil.
Total Current Assets was $298.14 Mil.
Total Assets was $12,559.38 Mil.
Property, Plant and Equipment(Net PPE) was $17.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $453.62 Mil.
Selling, General, & Admin. Expense(SGA) was $71.07 Mil.
Total Current Liabilities was $496.68 Mil.
Long-Term Debt & Capital Lease Obligation was $4,393.86 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)
	=	(50.41 / 1700.761)	/	(55.493 / 1595.874)
	=	0.02964	/	0.034773
	=	0.8524

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)
	=	(881.691 / 1595.874)	/	(953.667 / 1700.761)
	=	0.552482	/	0.56073
	=	0.9853

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 - (368.259 + 14.428) / 12844.285)	/	(1 - (298.14 + 17.145) / 12559.377)
	=	0.970206	/	0.974896
	=	0.9952

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
	=	1700.761	/	1595.874
	=	1.0657

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))
	=	(453.622 / (453.622 + 17.145))	/	(468.791 / (468.791 + 14.428))
	=	0.963581	/	0.970142
	=	0.9932

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)
	=	(81.312 / 1700.761)	/	(71.07 / 1595.874)
	=	0.047809	/	0.044534
	=	1.0735

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)
	=	((4534.842 + 488.994) / 12844.285)	/	((4393.861 + 496.679) / 12559.377)
	=	0.391134	/	0.389394
	=	1.0045

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
	=	(365.813 - 167.599	-	824.663)	/	12844.285
	=	-0.048773

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.

American Homes 4 Rent has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.

American Homes 4 Rent Beneish M-Score Related Terms

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American Homes 4 Rent Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Homes 4 Rent (NYSE:AMHpG.PFD) » Definitions » Beneish M-Score

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AMHpH.PFD:USA AMH:USA 0HEJ:UK

Address

280 Pilot Road, Las Vegas, NV, USA, 89119

Website

https://www.amh.com

American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.