Lamar Advertising Co (FRA:6LA) Beneish M-Score : -2.59 (As of Dec. 15, 2024)

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What is Lamar Advertising Co 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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Lamar Advertising Co's Beneish M-Score or its related term are showing as below:

FRA:6LA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.64 Max: -2.52
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Lamar Advertising Co was -2.52. The lowest was -2.88. And the median was -2.64.

Lamar Advertising Co Beneish M-Score Historical Data

The historical data trend for Lamar Advertising Co'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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Lamar Advertising Co Beneish M-Score Chart

Lamar Advertising Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.66

-2.76

-2.61

-2.70

-2.60

Lamar Advertising Co 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															-2.75	-2.60	-2.53	-2.71	-2.59

Competitive Comparison of Lamar Advertising Co's Beneish M-Score

For the REIT - Specialty subindustry, Lamar Advertising Co'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.

Lamar Advertising Co's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Lamar Advertising Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lamar Advertising Co's Beneish M-Score falls into.

Lamar Advertising Co 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 Lamar Advertising Co 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 * 1.0629

0.528 * 1.0021

0.404 * 0.9784

0.892 * 1.0245

0.115 * 1.1988

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9843

4.679 * -0.054078

0.327 * 0.9895

-2.63

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €316 Mil.
Revenue was 508.286 + 525.118 + 458.298 + 509.769 = €2,001 Mil.
Gross Profit was 343.777 + 354.865 + 296.705 + 343.428 = €1,339 Mil.
Total Current Assets was €372 Mil.
Total Assets was €5,875 Mil.
Property, Plant and Equipment(Net PPE) was €2,603 Mil.
Depreciation, Depletion and Amortization(DDA) was €273 Mil.
Selling, General, & Admin. Expense(SGA) was €327 Mil.
Total Current Liabilities was €666 Mil.
Long-Term Debt & Capital Lease Obligation was €3,702 Mil.
Net Income was 132.876 + 127.613 + 71.966 + 136.711 = €469 Mil.
Non Operating Income was 4.366 + 0.769 + 1.499 + 2.385 = €9 Mil.
Cash Flow from Operations was 204.881 + 238.142 + 101.717 + 233.095 = €778 Mil.

Total Receivables was €291 Mil.
Revenue was 508.425 + 499.469 + 440.224 + 505.521 = €1,954 Mil.
Gross Profit was 344.273 + 340.914 + 282.909 + 341.431 = €1,310 Mil.
Total Current Assets was €354 Mil.
Total Assets was €6,158 Mil.
Property, Plant and Equipment(Net PPE) was €2,697 Mil.
Depreciation, Depletion and Amortization(DDA) was €347 Mil.
Selling, General, & Admin. Expense(SGA) was €324 Mil.
Total Current Liabilities was €647 Mil.
Long-Term Debt & Capital Lease Obligation was €3,981 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)
	=	(316.458 / 2001.471)	/	(290.629 / 1953.639)
	=	0.158113	/	0.148763
	=	1.0629

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)
	=	(1309.527 / 1953.639)	/	(1338.775 / 2001.471)
	=	0.670301	/	0.668896
	=	1.0021

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 - (371.5 + 2603.015) / 5874.581)	/	(1 - (354.342 + 2696.799) / 6158.266)
	=	0.493663	/	0.504545
	=	0.9784

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
	=	2001.471	/	1953.639
	=	1.0245

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))
	=	(346.598 / (346.598 + 2696.799))	/	(273.248 / (273.248 + 2603.015))
	=	0.113885	/	0.095001
	=	1.1988

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)
	=	(326.64 / 2001.471)	/	(323.91 / 1953.639)
	=	0.1632	/	0.165798
	=	0.9843

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)
	=	((3702.247 + 665.596) / 5874.581)	/	((3980.511 + 646.755) / 6158.266)
	=	0.743516	/	0.751391
	=	0.9895

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
	=	(469.166 - 9.019	-	777.835)	/	5874.581
	=	-0.054078

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.

Lamar Advertising Co has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Lamar Advertising Co Beneish M-Score Related Terms

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Lamar Advertising Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Lamar Advertising Co (FRA:6LA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LAMR:USA 6LA:Germany

Address

5321 Corporate Boulevard, Baton Rouge, LA, USA, 70808

Website

https://www.lamar.com

Lamar Advertising Co is an outdoor advertising company organized as a real estate investment trust for U.S. federal income tax purposes. Lamar's core revenue-generating activity is leasing space for advertising on billboards, buses, shelters, benches, logo plates, and airport terminals through short-term agreements. The company is involved in this process from ad copy production to the placement and maintenance of physical advertisements. The vast majority of Lamar's revenue comes from renting ad space on its portfolio of static and digital roadside billboard displays in the U.S. The states of Pennsylvania and Texas house a proportion of these. The company's customers are restaurant, service, healthcare, and retail firms in terms of total revenue.

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