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CubeSmart Beneish M-Score

: -2.58 (As of Today)
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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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CUBE' s Beneish M-Score Range Over the Past 10 Years
Min: -14.27   Med: -2.54   Max: 14.11
Current: -2.58

During the past 13 years, the highest Beneish M-Score of CubeSmart was 14.11. The lowest was -14.27. And the median was -2.54.


CubeSmart Beneish M-Score Historical Data

The historical data trend for CubeSmart'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.

CubeSmart Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.13 -2.45 -2.63 -2.54 -2.46

CubeSmart Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.54 -2.53 -2.46 -2.60 -2.58

Competitive Comparison

For the REIT - Industrial subindustry, CubeSmart'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.

   

CubeSmart Beneish M-Score Distribution

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

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



CubeSmart 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 CubeSmart 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 * 0.9221+0.528 * 0.9617+0.404 * 1.0045+0.892 * 1.2466+0.115 * 0.9055
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9771+4.679 * -0.0472-0.327 * 1.0183
=-2.58

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $26.5 Mil.
Revenue was 248.664 + 238.565 + 221.912 + 212.564 = $921.7 Mil.
Gross Profit was 175.192 + 167.998 + 158.852 + 148.499 = $650.5 Mil.
Total Current Assets was $49.5 Mil.
Total Assets was $6,428.8 Mil.
Property, Plant and Equipment(Net PPE) was $50.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $293.7 Mil.
Selling, General, & Admin. Expense(SGA) was $53.6 Mil.
Total Current Liabilities was $483.8 Mil.
Long-Term Debt & Capital Lease Obligation was $3,001.4 Mil.
Net Income was 58.358 + 38.155 + 45.348 + 87.65 = $229.5 Mil.
Non Operating Income was 0.187 + -8.869 + -4.733 + 30.17 = $16.8 Mil.
Cash Flow from Operations was 153.569 + 130.735 + 106.245 + 125.582 = $516.1 Mil.
Total Receivables was $23.0 Mil.
Revenue was 199.247 + 188.841 + 178.787 + 172.511 = $739.4 Mil.
Gross Profit was 135.496 + 127.613 + 123.339 + 115.41 = $501.9 Mil.
Total Current Assets was $40.3 Mil.
Total Assets was $4,771.2 Mil.
Property, Plant and Equipment(Net PPE) was $54.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $187.0 Mil.
Selling, General, & Admin. Expense(SGA) was $44.0 Mil.
Total Current Liabilities was $272.7 Mil.
Long-Term Debt & Capital Lease Obligation was $2,267.4 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)
=(26.457 / 921.705) / (23.017 / 739.386)
=0.02870441 / 0.03112988
=0.9221

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)
=(501.858 / 739.386) / (650.541 / 921.705)
=0.67874967 / 0.70580175
=0.9617

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 - (49.463 + 50.029) / 6428.799) / (1 - (40.344 + 54.683) / 4771.232)
=0.98452401 / 0.98008334
=1.0045

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
=921.705 / 739.386
=1.2466

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))
=(187.005 / (187.005 + 54.683)) / (293.74 / (293.74 + 50.029))
=0.77374549 / 0.85446913
=0.9055

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)
=(53.583 / 921.705) / (43.991 / 739.386)
=0.05813465 / 0.05949666
=0.9771

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)
=((3001.356 + 483.774) / 6428.799) / ((2267.449 + 272.731) / 4771.232)
=0.54211214 / 0.53239499
=1.0183

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
=(229.511 - 16.755 - 516.131) / 6428.799
=-0.0472

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.

CubeSmart has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.


CubeSmart Beneish M-Score Related Terms

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CubeSmart Business Description

CubeSmart logo
Traded in Other Exchanges
Address
5 Old Lancaster Road, Malvern, PA, USA, 19355
CubeSmart is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United States. The company's real estate portfolio is composed of buildings with numerous enclosed storage areas for both residential and commercial customers to rent mainly on a month-by-month basis. Most of CubeSmart's facilities are located in Florida, Texas, California, New York, and Illinois. Cumulatively, these states account for both the majority of the square footage in the company's real estate portfolio and the majority of its revenue. CubeSmart derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.
Executives
Lynch Jair K director 5 OLD LANCASTER RD MALVERN PA 19355
Keaton Joel D officer: Sr VP of Operations 5 OLD LANCASTER ROAD MALVERN PA 19355
Dowling Dororthy director 5 OLD LANCASTER ROAD MALVERN PA 19355
Perry Jonathan L officer: SVP and CIO 5 OLD LANCASTER ROAD MALVERN PA 19355
Ratnersalzberg Deborah director 301 WATER ST SE SUITE 201 WASHINGTON DC 20003
Fain John W director 1000 SEMMES AVE RICHMOND VA 23224
Rogatz Jeffrey F director
Blatz Robert G officer: SR VP of Operations 29399 US HWY STE 320 CLEARWATER FL 33761
Bussani Piero director 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Remondi John F director 300 CONTINENTAL DRIVE NEWARK DE 19713
Foster Jeffrey P officer: Sr. VP - Chief Legal Officer 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Amsdell & Amsdell other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Holdings I Inc. other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Real Estate Trust Dated 10/3/89 other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Andrews Charles Elliott director C/O H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

CubeSmart Headlines

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