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Redefine Properties (JSE:RDF) Beneish M-Score : -2.65 (As of Dec. 15, 2024)


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What is Redefine Properties 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:RDF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Med: -2.51   Max: -1.08
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Redefine Properties was -1.08. The lowest was -3.72. And the median was -2.51.


Redefine Properties Beneish M-Score Historical Data

The historical data trend for Redefine Properties'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.

Redefine Properties Beneish M-Score Chart

Redefine Properties Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.72 -2.36 -1.32 -2.68 -2.65

Redefine Properties Semi-Annual Data
Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.32 - -2.68 - -2.65

Competitive Comparison of Redefine Properties's Beneish M-Score

For the REIT - Diversified subindustry, Redefine Properties'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.


Redefine Properties's Beneish M-Score Distribution in the REITs Industry

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

* The bar in red indicates where Redefine Properties's Beneish M-Score falls into.



Redefine Properties 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 Redefine Properties for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.7787+0.528 * 0.9994+0.404 * 1.004+0.892 * 1.0754+0.115 * 0.9397
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.355+4.679 * 0.010205-0.327 * 1.0324
=-2.65

* 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.

This Year (Aug24) TTM:Last Year (Aug23) TTM:
Total Receivables was R751 Mil.
Revenue was R10,656 Mil.
Gross Profit was R6,355 Mil.
Total Current Assets was R2,086 Mil.
Total Assets was R101,914 Mil.
Property, Plant and Equipment(Net PPE) was R205 Mil.
Depreciation, Depletion and Amortization(DDA) was R26 Mil.
Selling, General, & Admin. Expense(SGA) was R422 Mil.
Total Current Liabilities was R4,958 Mil.
Long-Term Debt & Capital Lease Obligation was R41,520 Mil.
Net Income was R3,969 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R2,929 Mil.
Total Receivables was R897 Mil.
Revenue was R9,909 Mil.
Gross Profit was R5,906 Mil.
Total Current Assets was R2,434 Mil.
Total Assets was R99,448 Mil.
Property, Plant and Equipment(Net PPE) was R191 Mil.
Depreciation, Depletion and Amortization(DDA) was R23 Mil.
Selling, General, & Admin. Expense(SGA) was R290 Mil.
Total Current Liabilities was R9,062 Mil.
Long-Term Debt & Capital Lease Obligation was R34,868 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)
=(751.13 / 10655.771) / (896.976 / 9908.932)
=0.07049 / 0.090522
=0.7787

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)
=(5905.63 / 9908.932) / (6354.524 / 10655.771)
=0.595991 / 0.596346
=0.9994

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 - (2086.068 + 204.834) / 101914.154) / (1 - (2433.555 + 190.679) / 99448.195)
=0.977521 / 0.973612
=1.004

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
=10655.771 / 9908.932
=1.0754

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))
=(22.978 / (22.978 + 190.679)) / (26.471 / (26.471 + 204.834))
=0.107546 / 0.114442
=0.9397

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)
=(421.852 / 10655.771) / (289.502 / 9908.932)
=0.039589 / 0.029216
=1.355

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)
=((41520.285 + 4957.565) / 101914.154) / ((34868.286 + 9061.785) / 99448.195)
=0.456049 / 0.441738
=1.0324

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
=(3969.413 - 0 - 2929.419) / 101914.154
=0.010205

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.

Redefine Properties has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.


Redefine Properties Beneish M-Score Related Terms

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Redefine Properties Business Description

Traded in Other Exchanges
N/A
Address
155 West Street, 4th floor, Sandown, Sandton, Johannesburg, GT, ZAF, 2196
Redefine Properties Ltd is a South African real estate investment trust involved in the ownership of office, retail, and industrial properties. The vast majority of Redefine's real estate portfolio is located in South Africa and Poland .Within South Africa, over half of the company's properties are in the province of Gauteng in terms of total value. The group comprises of segments in the local portfolio, being office, retail, industrial, specialised and head office, and the international portfolio being EPP, Redefine Europe and other. Majority of revenue is generated from EPP, international portfolio.

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