American Homes 4 Rent (American Homes 4 Rent) Beneish M-Score : -2.78 (As of Apr. 26, 2024)

View and export this data going back to 2013. Start your Free Trial

What is American Homes 4 Rent 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for American Homes 4 Rent's Beneish M-Score or its related term are showing as below:

AMHPRA.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97 Med: -2.44 Max: -1.56
Current: -2.78

During the past 13 years, the highest Beneish M-Score of American Homes 4 Rent was -1.56. The lowest was -2.97. And the median was -2.44.

American Homes 4 Rent Beneish M-Score Historical Data

The historical data trend for American Homes 4 Rent'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.

American Homes 4 Rent Beneish M-Score Chart

American Homes 4 Rent Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.56

-2.52

-2.74

-2.97

-2.78

American Homes 4 Rent Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.97	-2.98	-2.53	-2.61	-2.78

Competitive Comparison of American Homes 4 Rent's Beneish M-Score

For the REIT - Residential subindustry, American Homes 4 Rent'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.

American Homes 4 Rent's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Homes 4 Rent's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Beneish M-Score falls into.

American Homes 4 Rent 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 American Homes 4 Rent 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 * 0.8034

0.528 * 0.9985

0.404 * 1.0014

0.892 * 1.0893

0.115 * 0.9919

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0065

4.679 * -0.044233

0.327 * 0.958

-2.78

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $43.88 Mil.
Revenue was 408.657 + 421.697 + 395.548 + 397.703 = $1,623.61 Mil.
Gross Profit was 234.748 + 223.871 + 222.329 + 219.835 = $900.78 Mil.
Total Current Assets was $265.74 Mil.
Total Assets was $12,688.19 Mil.
Property, Plant and Equipment(Net PPE) was $16.62 Mil.
Depreciation, Depletion and Amortization(DDA) was $456.55 Mil.
Selling, General, & Admin. Expense(SGA) was $74.62 Mil.
Total Current Liabilities was $506.36 Mil.
Long-Term Debt & Capital Lease Obligation was $4,389.94 Mil.
Net Income was 80.103 + 77.599 + 101.515 + 120.951 = $380.17 Mil.
Non Operating Income was 25.538 + 31.801 + 61.065 + 84.318 = $202.72 Mil.
Cash Flow from Operations was 115.315 + 207.698 + 215.209 + 200.467 = $738.69 Mil.

Total Receivables was $50.14 Mil.
Revenue was 380.926 + 391.627 + 361.876 + 356.105 = $1,490.53 Mil.
Gross Profit was 215.656 + 209.823 + 203.838 + 196.428 = $825.75 Mil.
Total Current Assets was $268.10 Mil.
Total Assets was $12,175.06 Mil.
Property, Plant and Equipment(Net PPE) was $19.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $426.53 Mil.
Selling, General, & Admin. Expense(SGA) was $68.06 Mil.
Total Current Liabilities was $497.29 Mil.
Long-Term Debt & Capital Lease Obligation was $4,406.75 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)
	=	(43.876 / 1623.605)	/	(50.135 / 1490.534)
	=	0.027024	/	0.033636
	=	0.8034

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)
	=	(825.745 / 1490.534)	/	(900.783 / 1623.605)
	=	0.553993	/	0.554804
	=	0.9985

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 - (265.737 + 16.623) / 12688.19)	/	(1 - (268.095 + 19.129) / 12175.059)
	=	0.977746	/	0.976409
	=	1.0014

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
	=	1623.605	/	1490.534
	=	1.0893

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))
	=	(426.531 / (426.531 + 19.129))	/	(456.55 / (456.55 + 16.623))
	=	0.957077	/	0.964869
	=	0.9919

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)
	=	(74.615 / 1623.605)	/	(68.057 / 1490.534)
	=	0.045956	/	0.045659
	=	1.0065

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)
	=	((4389.935 + 506.364) / 12688.19)	/	((4406.753 + 497.292) / 12175.059)
	=	0.385894	/	0.402794
	=	0.958

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
	=	(380.168 - 202.722	-	738.689)	/	12688.19
	=	-0.044233

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.

American Homes 4 Rent has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

American Homes 4 Rent Beneish M-Score Related Terms

Thank you for viewing the detailed overview of American Homes 4 Rent's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

American Homes 4 Rent (American Homes 4 Rent) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Homes 4 Rent (NYSE:AMHPRA.PFD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AMHpH.PFD:USA AMHpG.PFD:USA AMH:USA A4XA:Germany

Address

280 Pilot Road, Las Vegas, NV, USA, 89119

Website

https://www.amh.com

American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.