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GuruFocus has detected 4 Warning Signs with Kimco Realty Corp $KIM.
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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.70 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Kimco Realty Corp has a M-score of -2.70 suggests that the company is not a manipulator.

KIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: 1.02
Current: -2.7

-3.39
1.02

During the past 13 years, the highest Beneish M-Score of Kimco Realty Corp was 1.02. The lowest was -3.39. And the median was -2.49.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Kimco Realty Corp 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 * 1.0147+0.528 * 1.003+0.404 * 0.7702+0.892 * 0.9887+0.115 * 1.0189
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9616+4.679 * -0.0228-0.327 * 1.0972
=-2.70

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $199 Mil.
Revenue was 293.588 + 297.026 + 285.076 + 291.488 = $1,167 Mil.
Gross Profit was 218.306 + 215.114 + 212.055 + 219.746 = $865 Mil.
Total Current Assets was $374 Mil.
Total Assets was $11,248 Mil.
Property, Plant and Equipment(Net PPE) was $9,737 Mil.
Depreciation, Depletion and Amortization(DDA) was $363 Mil.
Selling, General & Admin. Expense(SGA) was $116 Mil.
Total Current Liabilities was $667 Mil.
Long-Term Debt was $5,125 Mil.
Net Income was 76.733 + 78.273 + -43.545 + 203.409 = $315 Mil.
Non Operating Income was 1.273 + 1.598 + -41.793 + -1.656 = $-41 Mil.
Cash Flow from Operations was 157.052 + 147.57 + 228.679 + 78.891 = $612 Mil.
Accounts Receivable was $198 Mil.
Revenue was 297.202 + 300.87 + 288.382 + 294.061 = $1,181 Mil.
Gross Profit was 225.359 + 220.141 + 213.983 + 218.24 = $878 Mil.
Total Current Assets was $426 Mil.
Total Assets was $11,249 Mil.
Property, Plant and Equipment(Net PPE) was $9,346 Mil.
Depreciation, Depletion and Amortization(DDA) was $355 Mil.
Selling, General & Admin. Expense(SGA) was $122 Mil.
Total Current Liabilities was $117 Mil.
Long-Term Debt was $5,162 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(198.639 / 1167.178) / (198.005 / 1180.515)
=0.17018741 / 0.16772764
=1.0147

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)
=(877.723 / 1180.515) / (865.221 / 1167.178)
=0.74350855 / 0.7412931
=1.003

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (373.795 + 9736.901) / 11248.419) / (1 - (425.721 + 9346.355) / 11249.361)
=0.10114515 / 0.13132168
=0.7702

4. SGI = Sales Growth Index

Ratio of sales 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
=1167.178 / 1180.515
=0.9887

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(354.814 / (354.814 + 9346.355)) / (362.538 / (362.538 + 9736.901))
=0.03657436 / 0.03589685
=1.0189

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(115.947 / 1167.178) / (121.959 / 1180.515)
=0.0993396 / 0.10331
=0.9616

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5124.883 + 666.959) / 11248.419) / ((5162.462 + 116.631) / 11249.361)
=0.51490276 / 0.46927937
=1.0972

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
=(314.87 - -40.578 - 612.192) / 11248.419
=-0.0228

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Kimco Realty Corp has a M-score of -2.70 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Kimco Realty Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.31150.8711.20311.15462.07660.93130.73971.09770.68821.0263
GMI 00.98591.02530.99290.99460.98610.99491.00421.0010.992
AQI 0.65190.91720.98461.09960.93230.97850.94710.77730.80070.7507
SGI 1.14811.22261.00740.99520.98510.97411.08591.15361.17391.0034
DEPI 0.92690.97251.02570.86340.99120.97351.02411.04910.93170.998
SGAI 1.17020.91480.9231.01411.10381.06960.95030.8310.85560.9524
LVGI 1.49651.03360.8460.95741.02831.00381.01971.02351.05510.9555
TATA -0.031-0.031-0.0324-0.0343-0.0311-0.0219-0.0351-0.01950.0348-0.0153
M-score -4.00-2.59-2.36-2.47-1.71-2.70-2.83-2.41-2.53-2.61

Kimco Realty Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.12211.16280.88780.89450.68820.69890.91180.94321.02631.0147
GMI 1.0031.0021.00180.99971.0010.99450.99050.98970.9921.003
AQI 0.77730.72240.7790.75710.80070.9260.83540.72880.75070.7702
SGI 1.12861.18971.21821.20971.17391.12521.07351.03911.00340.9887
DEPI 1.04911.14811.04710.95120.93170.79970.84360.97390.9981.0189
SGAI 0.84930.75810.75850.76850.85560.92020.9651.01380.95240.9616
LVGI 1.02351.08991.03831.05351.05510.94410.94540.92920.95551.0972
TATA -0.01950.00350.0086-0.00120.03480.02240.0330.0219-0.0152-0.0228
M-score -2.41-2.23-2.40-2.48-2.53-2.56-2.41-2.49-2.61-2.70
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