Host Hotels & Resorts (BSP:H1ST34) Beneish M-Score

: -3.38 (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 -3.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Host Hotels & Resorts's Beneish M-Score or its related term are showing as below:

BSP:H1ST34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38 Med: -2.75 Max: -0.28
Current: -3.38

During the past 13 years, the highest Beneish M-Score of Host Hotels & Resorts was -0.28. The lowest was -3.38. And the median was -2.75.

Host Hotels & Resorts Beneish M-Score Historical Data

The historical data trend for Host Hotels & Resorts'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.

Host Hotels & Resorts Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.84

-2.66

-0.28

-0.72

-3.38

Host Hotels & Resorts 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																-0.72	-0.37	-2.89	-3.11	-3.38

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Host Hotels & Resorts'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.

Host Hotels & Resorts Beneish M-Score Distribution

For the REITs industry and Real Estate sector, Host Hotels & Resorts's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Host Hotels & Resorts's Beneish M-Score falls into.

Host Hotels & Resorts 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 Host Hotels & Resorts 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 * 0.351

0.528 * 1.0216

0.404 * 0.8614

0.892 * 1.0499

0.115 * 0.9114

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0523

4.679 * -0.069334

0.327 * 1.0063

-3.42

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was R$980 Mil.
Revenue was 6482.435 + 5995.582 + 6761.204 + 7193.077 = R$26,432 Mil.
Gross Profit was 3743.447 + 3313.868 + 4057.693 + 4312.721 = R$15,428 Mil.
Total Current Assets was R$7,649 Mil.
Total Assets was R$59,988 Mil.
Property, Plant and Equipment(Net PPE) was R$49,851 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,466 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,811 Mil.
Total Current Liabilities was R$7,159 Mil.
Long-Term Debt & Capital Lease Obligation was R$18,536 Mil.
Net Income was 646.774 + 548.196 + 1019.277 + 1494.868 = R$3,709 Mil.
Non Operating Income was 107.796 + 237.058 + 14.561 + 364.602 = R$724 Mil.
Cash Flow from Operations was 1504.239 + 1550.752 + 2485.094 + 1604.249 = R$7,144 Mil.

Total Receivables was R$2,659 Mil.
Revenue was 6624.94 + 6234.64 + 6970.874 + 5344.654 = R$25,175 Mil.
Gross Profit was 3928.805 + 3560.404 + 4386.451 + 3135.132 = R$15,011 Mil.
Total Current Assets was R$7,207 Mil.
Total Assets was R$64,356 Mil.
Property, Plant and Equipment(Net PPE) was R$54,049 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,404 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,639 Mil.
Total Current Liabilities was R$7,517 Mil.
Long-Term Debt & Capital Lease Obligation was R$19,875 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)
	=	(979.96 / 26432.298)	/	(2659.418 / 25175.108)
	=	0.037074	/	0.105637
	=	0.351

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)
	=	(15010.792 / 25175.108)	/	(15427.729 / 26432.298)
	=	0.596255	/	0.58367
	=	1.0216

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 - (7648.588 + 49850.565) / 59988.251)	/	(1 - (7207.18 + 54048.602) / 64355.813)
	=	0.041493	/	0.04817
	=	0.8614

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
	=	26432.298	/	25175.108
	=	1.0499

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))
	=	(3404.354 / (3404.354 + 54048.602))	/	(3466.372 / (3466.372 + 49850.565))
	=	0.059255	/	0.065014
	=	0.9114

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)
	=	(1810.862 / 26432.298)	/	(1638.997 / 25175.108)
	=	0.068509	/	0.065104
	=	1.0523

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)
	=	((18535.943 + 7158.608) / 59988.251)	/	((19874.821 + 7516.658) / 64355.813)
	=	0.428326	/	0.425626
	=	1.0063

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
	=	(3709.115 - 724.017	-	7144.334)	/	59988.251
	=	-0.069334

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.

Host Hotels & Resorts has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.

Host Hotels & Resorts Beneish M-Score Related Terms

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Host Hotels & Resorts (BSP:H1ST34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Host Hotels & Resorts Inc (BSP:H1ST34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HST:USA HMT:Germany

Address

4747 Bethesda Avenue, Suite 1300, Bethesda, MD, USA, 20814

Website

https://www.hosthotels.com

Host Hotels & Resorts owns 77 predominantly urban and resort upper-upscale and luxury hotel properties representing nearly 42,000 rooms, mainly in the United States. Host recently sold off the company's interests in a joint venture owning a portfolio of hotels throughout Europe and also sold other joint ventures that owned properties in Asia and the United States. The majority of Host's portfolio operates under the Marriott and Starwood brands.

Host Hotels & Resorts (BSP:H1ST34) Headlines

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