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Essential Properties Realty Trust Beneish M-Score

: -2.16 (As of Today)
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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.

Essential Properties Realty Trust has a M-score of -2.16 signals that the company is a manipulator.

NYSE:EPRT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.16   Med: -2.12   Max: -1.96
Current: -2.16

-2.16
-1.96

During the past 4 years, the highest Beneish M-Score of Essential Properties Realty Trust was -1.96. The lowest was -2.16. And the median was -2.12.


Essential Properties Realty Trust Beneish M-Score Historical Data

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

* Premium members only.

Essential Properties Realty Trust Annual Data
Dec16 Dec17 Dec18 Dec19
Beneish M-Score 0.00 0.00 0.00 -1.96

Essential Properties Realty Trust Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 0.00 0.00 -1.96 -2.12 -2.16

Competitive Comparison
* 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.


Essential Properties Realty Trust Beneish M-Score Distribution

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



Essential Properties Realty Trust 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 Essential Properties Realty Trust 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 * 1.2134+0.528 * 0.9869+0.404 * 0.9556+0.892 * 1.3148+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2382+4.679 * -0.0188-0.327 * 1.0053
=-2.16

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

This Year (Jun20) TTM:Last Year (Jun19) TTM:
Accounts Receivable was $31.3 Mil.
Revenue was 38.503 + 41.487 + 39.205 + 36.291 = $155.5 Mil.
Gross Profit was 37.931 + 41.114 + 38.469 + 35.849 = $153.4 Mil.
Total Current Assets was $167.9 Mil.
Total Assets was $2,247.2 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $51.9 Mil.
Selling, General, & Admin. Expense(SGA) was $26.6 Mil.
Total Current Liabilities was $34.7 Mil.
Long-Term Debt & Capital Lease Obligation was $807.7 Mil.
Net Income was 10.381 + 13.959 + 14.521 + 13.245 = $52.1 Mil.
Non Operating Income was -0.393 + 0.578 + 0.811 + 4.087 = $5.1 Mil.
Cash Flow from Operations was 10.105 + 26.349 + 27.657 + 25.074 = $89.2 Mil.
Accounts Receivable was $19.6 Mil.
Revenue was 32.755 + 31.107 + 28.65 + 25.742 = $118.3 Mil.
Gross Profit was 32.11 + 29.86 + 27.891 + 25.248 = $115.1 Mil.
Total Current Assets was $52.1 Mil.
Total Assets was $1,643.3 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
(DDA) was $37.2 Mil.
Selling, General, & Admin. Expense(SGA) was $16.3 Mil.
Total Current Liabilities was $30.4 Mil.
Long-Term Debt & Capital Lease Obligation was $582.4 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(31.287 / 155.486) / (19.61 / 118.254)
=0.20122069 / 0.16582949
=1.2134

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)
=(115.109 / 118.254) / (153.363 / 155.486)
=0.97340471 / 0.98634604
=0.9869

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 - (167.863 + 0) / 2247.242) / (1 - (52.078 + 0) / 1643.303)
=0.92530266 / 0.96830895
=0.9556

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
=155.486 / 118.254
=1.3148

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))
=(37.227 / (37.227 + 0)) / (51.937 / (51.937 + 0))
=1 / 1
=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)
=(26.609 / 155.486) / (16.344 / 118.254)
=0.17113438 / 0.13821097
=1.2382

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)
=((807.732 + 34.684) / 2247.242) / ((582.428 + 30.359) / 1643.303)
=0.37486661 / 0.37289958
=1.0053

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
=(52.106 - 5.083 - 89.185) / 2247.242
=-0.0188

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.

Essential Properties Realty Trust has a M-score of -2.16 signals that the company is likely to be a manipulator.


Essential Properties Realty Trust Beneish M-Score Headlines

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