Emaar Development PJSC (DFM:EMAARDEV) Beneish M-Score : -2.96 (As of May. 12, 2024)

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What is Emaar Development PJSC 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 -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Emaar Development PJSC's Beneish M-Score or its related term are showing as below:

DFM:EMAARDEV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09 Med: -2.28 Max: -0.56
Current: -2.96

During the past 10 years, the highest Beneish M-Score of Emaar Development PJSC was -0.56. The lowest was -3.09. And the median was -2.28.

Emaar Development PJSC Beneish M-Score Historical Data

The historical data trend for Emaar Development PJSC'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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Emaar Development PJSC Beneish M-Score Chart

Emaar Development PJSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.54

-2.12

-2.43

-3.09

-2.96

Emaar Development PJSC 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	Get a 7-Day Free Trial															-3.09	-3.16	-3.26	-3.59	-2.96

Competitive Comparison of Emaar Development PJSC's Beneish M-Score

For the Real Estate - Development subindustry, Emaar Development PJSC'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.

Emaar Development PJSC's Beneish M-Score Distribution in the Real Estate Industry

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

* The bar in red indicates where Emaar Development PJSC's Beneish M-Score falls into.

Emaar Development PJSC 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 Emaar Development PJSC 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 * 1.0294

0.528 * 0.6368

0.404 * 0.8113

0.892 * 1.033

0.115 * 0.75

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9048

4.679 * -0.064178

0.327 * 0.8645

-2.96

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was د.إ8,665 Mil.
Revenue was 4552.159 + 2914.067 + 2080.324 + 2374.829 = د.إ11,921 Mil.
Gross Profit was 3725.978 + 2379.94 + 973.543 + 1328.79 = د.إ8,408 Mil.
Total Current Assets was د.إ27,962 Mil.
Total Assets was د.إ48,868 Mil.
Property, Plant and Equipment(Net PPE) was د.إ17 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ13 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ1,012 Mil.
Total Current Liabilities was د.إ21,936 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ4 Mil.
Net Income was 2569.569 + 1882.346 + 1118.697 + 1058.385 = د.إ6,629 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 424.086 + 2429.77 + 3684.814 + 3226.558 = د.إ9,765 Mil.

Total Receivables was د.إ8,149 Mil.
Revenue was 2201.351 + 2057.033 + 3714.379 + 3568.141 = د.إ11,541 Mil.
Gross Profit was 1166.316 + 908.44 + 1592.262 + 1516.648 = د.إ5,184 Mil.
Total Current Assets was د.إ20,074 Mil.
Total Assets was د.إ42,474 Mil.
Property, Plant and Equipment(Net PPE) was د.إ20 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ10 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ1,083 Mil.
Total Current Liabilities was د.إ21,209 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ850 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)
	=	(8664.803 / 11921.379)	/	(8148.534 / 11540.904)
	=	0.726829	/	0.706057
	=	1.0294

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)
	=	(5183.666 / 11540.904)	/	(8408.251 / 11921.379)
	=	0.449156	/	0.705309
	=	0.6368

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 - (27962.284 + 16.524) / 48867.773)	/	(1 - (20074.122 + 20.156) / 42474.438)
	=	0.427459	/	0.526909
	=	0.8113

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
	=	11921.379	/	11540.904
	=	1.033

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))
	=	(9.627 / (9.627 + 20.156))	/	(12.515 / (12.515 + 16.524))
	=	0.323238	/	0.430972
	=	0.75

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)
	=	(1012.423 / 11921.379)	/	(1083.252 / 11540.904)
	=	0.084925	/	0.093862
	=	0.9048

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)
	=	((3.673 + 21935.645) / 48867.773)	/	((849.84 + 21208.979) / 42474.438)
	=	0.448953	/	0.519343
	=	0.8645

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
	=	(6628.997 - 0	-	9765.228)	/	48867.773
	=	-0.064178

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.

Emaar Development PJSC has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.

Emaar Development PJSC Beneish M-Score Related Terms

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Emaar Development PJSC (DFM:EMAARDEV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Emaar Development PJSC (DFM:EMAARDEV) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Emaar Business Park 1, Level 7, P.O. Box 9440, Dubai, ARE

Website

https://www.emaar.com

Emaar Development PJSC develops residential and commercial build-to-sell assets in the United Arab Emirates. Its business divisions include Malls, Entertainment, Hospitality, and Burj Khalifa. Malls include Gold and Diamond Park, The Dubai Mall, Souk Al Bahar, and others. The entertainment section comprises of KidZania, Dubai Opera, Dubai Ice Rink, and Dubai Aquarium and Underwater Zoo. Hospitality consists of Rove Hotels, Emaar Leisure Group, Vida Hotels and Resorts, and others.

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