United Real Estate Co (K S C) (KUW:URC) Beneish M-Score : -2.68 (As of Sep. 25, 2024)

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What is United Real Estate Co (K S C) 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for United Real Estate Co (K S C)'s Beneish M-Score or its related term are showing as below:

KUW:URC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01 Med: -2.59 Max: -1.75
Current: -2.68

During the past 13 years, the highest Beneish M-Score of United Real Estate Co (K S C) was -1.75. The lowest was -3.01. And the median was -2.59.

United Real Estate Co (K S C) Beneish M-Score Historical Data

The historical data trend for United Real Estate Co (K S C)'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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United Real Estate Co (K S C) Beneish M-Score Chart

United Real Estate Co (K S C) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.57

-2.81

-2.83

-2.57

United Real Estate Co (K S C) Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-2.69	-2.71	-2.57	-2.47	-2.68

Competitive Comparison of United Real Estate Co (K S C)'s Beneish M-Score

For the Real Estate - Development subindustry, United Real Estate Co (K S C)'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.

United Real Estate Co (K S C)'s Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, United Real Estate Co (K S C)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where United Real Estate Co (K S C)'s Beneish M-Score falls into.

United Real Estate Co (K S C) 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 United Real Estate Co (K S C) 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 * 0.9602

0.528 * 0.804

0.404 * 1.0032

0.892 * 0.9704

0.115 * 0.8822

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6055

4.679 * -0.02122

0.327 * 0.9719

-2.68

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was KWD44.42 Mil.
Revenue was 20.197 + 20.017 + 25.138 + 19.058 = KWD84.41 Mil.
Gross Profit was 7.568 + 7.096 + 7.71 + 5.61 = KWD27.98 Mil.
Total Current Assets was KWD81.12 Mil.
Total Assets was KWD650.62 Mil.
Property, Plant and Equipment(Net PPE) was KWD134.03 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD4.47 Mil.
Selling, General, & Admin. Expense(SGA) was KWD3.43 Mil.
Total Current Liabilities was KWD72.79 Mil.
Long-Term Debt & Capital Lease Obligation was KWD349.08 Mil.
Net Income was 1.957 + 2.049 + -0.545 + 0.698 = KWD4.16 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 4.587 + 1.471 + -1.221 + 13.128 = KWD17.97 Mil.

Total Receivables was KWD47.67 Mil.
Revenue was 19.655 + 23.435 + 23.568 + 20.326 = KWD86.98 Mil.
Gross Profit was 5.702 + 8.132 + 3.744 + 5.607 = KWD23.19 Mil.
Total Current Assets was KWD85.93 Mil.
Total Assets was KWD667.78 Mil.
Property, Plant and Equipment(Net PPE) was KWD136.34 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD3.99 Mil.
Selling, General, & Admin. Expense(SGA) was KWD5.84 Mil.
Total Current Liabilities was KWD98.29 Mil.
Long-Term Debt & Capital Lease Obligation was KWD347.24 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)
	=	(44.415 / 84.41)	/	(47.669 / 86.984)
	=	0.526182	/	0.54802
	=	0.9602

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)
	=	(23.185 / 86.984)	/	(27.984 / 84.41)
	=	0.266543	/	0.331525
	=	0.804

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 - (81.115 + 134.03) / 650.616)	/	(1 - (85.928 + 136.337) / 667.776)
	=	0.669321	/	0.667156
	=	1.0032

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
	=	84.41	/	86.984
	=	0.9704

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))
	=	(3.992 / (3.992 + 136.337))	/	(4.466 / (4.466 + 134.03))
	=	0.028447	/	0.032246
	=	0.8822

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)
	=	(3.432 / 84.41)	/	(5.841 / 86.984)
	=	0.040659	/	0.06715
	=	0.6055

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)
	=	((349.078 + 72.791) / 650.616)	/	((347.243 + 98.286) / 667.776)
	=	0.648415	/	0.667183
	=	0.9719

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
	=	(4.159 - 0	-	17.965)	/	650.616
	=	-0.02122

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.

United Real Estate Co (K S C) has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

United Real Estate Co (K S C) Beneish M-Score Related Terms

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United Real Estate Co (K S C) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » United Real Estate Co (K S C) (KUW:URC) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

Khalid Bin Al-Waleed Street, P.O. Box 2232, Al Shaheed Tower, Floors 7-8-9-10, Sharq, Safat, Kuwait, KWT, 13023

Website

https://www.urc.com.kw

United Real Estate Co (K S C) is a diversified real estate company. The firm primarily operates through a number of operating subsidiaries and investment arms across the Middle East and North Africa region. The company's core business is real estate development and operations. It has a diversified portfolio of assets that comprise residential, office, hospitality, and retail properties. In addition, the firm's operations extend to construction and contracting, facility management, and project management through its several subsidiaries. Its primary geographic markets are Kuwait, Jordan, Egypt and Oman out of which Kuwait generates maximum revenue for the company.

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