Omega Healthcare Investors (FRA:WX4) Beneish M-Score : -2.42 (As of Dec. 11, 2024)

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

The historical rank and industry rank for Omega Healthcare Investors's Beneish M-Score or its related term are showing as below:

FRA:WX4' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.56 Max: -2.09
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Omega Healthcare Investors was -2.09. The lowest was -2.90. And the median was -2.56.

Omega Healthcare Investors Beneish M-Score Historical Data

The historical data trend for Omega Healthcare Investors'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.

Omega Healthcare Investors Beneish M-Score Chart

Omega Healthcare Investors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.54

-2.79

-2.35

-2.82

-2.56

Omega Healthcare Investors 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															-2.10	-2.56	-2.53	-2.48	-2.42

Competitive Comparison of Omega Healthcare Investors's Beneish M-Score

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.

Omega Healthcare Investors's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Omega Healthcare Investors's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Omega Healthcare Investors's Beneish M-Score falls into.

Omega Healthcare Investors 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 Omega Healthcare Investors 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 * 1.0038

0.528 * 0.9956

0.404 * 0.9847

0.892 * 1.161

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8993

4.679 * -0.035547

0.327 * 0.9146

-2.46

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €1,730.3 Mil.
Revenue was 248.701 + 234.8 + 223.835 + 219.456 = €926.8 Mil.
Gross Profit was 245.486 + 231.316 + 220.341 + 216.511 = €913.7 Mil.
Total Current Assets was €2,123.3 Mil.
Total Assets was €8,624.3 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €276.5 Mil.
Selling, General, & Admin. Expense(SGA) was €77.0 Mil.
Total Current Liabilities was €282.3 Mil.
Long-Term Debt & Capital Lease Obligation was €4,377.2 Mil.
Net Income was 100.698 + 105.778 + 61.972 + 50.436 = €318.9 Mil.
Non Operating Income was -14.845 + 5.666 + -4.87 + 11.245 = €-2.8 Mil.
Cash Flow from Operations was 166.581 + 171.032 + 139.356 + 151.287 = €628.3 Mil.

Total Receivables was €1,484.7 Mil.
Revenue was 226.784 + 230.923 + 203.801 + 136.738 = €798.2 Mil.
Gross Profit was 223.137 + 227.3 + 200.067 + 132.958 = €783.5 Mil.
Total Current Assets was €2,070.7 Mil.
Total Assets was €8,831.5 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €306.3 Mil.
Selling, General, & Admin. Expense(SGA) was €73.7 Mil.
Total Current Liabilities was €277.6 Mil.
Long-Term Debt & Capital Lease Obligation was €4,939.6 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)
	=	(1730.255 / 926.792)	/	(1484.663 / 798.246)
	=	1.866929	/	1.859907
	=	1.0038

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)
	=	(783.462 / 798.246)	/	(913.654 / 926.792)
	=	0.981479	/	0.985824
	=	0.9956

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 - (2123.346 + 0) / 8624.256)	/	(1 - (2070.707 + 0) / 8831.518)
	=	0.753794	/	0.765532
	=	0.9847

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
	=	926.792	/	798.246
	=	1.161

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))
	=	(306.294 / (306.294 + 0))	/	(276.546 / (276.546 + 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)
	=	(76.983 / 926.792)	/	(73.731 / 798.246)
	=	0.083064	/	0.092366
	=	0.8993

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)
	=	((4377.24 + 282.346) / 8624.256)	/	((4939.622 + 277.578) / 8831.518)
	=	0.540288	/	0.590748
	=	0.9146

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
	=	(318.884 - -2.804	-	628.256)	/	8624.256
	=	-0.035547

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.

Omega Healthcare Investors has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Omega Healthcare Investors Beneish M-Score Related Terms

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Omega Healthcare Investors Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Omega Healthcare Investors Inc (FRA:WX4) » Definitions » Beneish M-Score

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OHI:USA 0KBL:UK WX4:Germany

Address

303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030

Website

https://www.omegahealthcare.com

Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. Omega has one reportable segment consisting of investments in healthcare-related real estate properties located in the United States and the United Kingdom. Its core business is to provide financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities (SNFs), assisted living facilities (ALFs), and to a lesser extent, independent living facilities (ILFs), rehabilitation and acute care facilities (specialty facilities) and medical office buildings (MOBs).

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