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Realtyome (Realtyome) Beneish M-Score

: -2.05 (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 -2.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

O' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77   Med: -2.31   Max: -1.82
Current: -2.05

During the past 13 years, the highest Beneish M-Score of Realtyome was -1.82. The lowest was -2.77. And the median was -2.31.


Realtyome Beneish M-Score Historical Data

The historical data trend for Realtyome'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.

Realtyome Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.83 -2.19 -1.82 -1.89 -2.05

Realtyome 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 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 -1.89 -2.06 -1.77 -1.89 -2.05

Competitive Comparison

For the REIT - Retail subindustry, Realtyome'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.


Realtyome Beneish M-Score Distribution

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

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



Realtyome 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 Realtyome 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 * 1.4164+0.528 * 1.0109+0.404 * 0.9836+0.892 * 1.2199+0.115 * 1.0278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8557+4.679 * -0.035146-0.327 * 1.026
=-2.05

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $2,594 Mil.
Revenue was 1076.285 + 1039.104 + 1019.205 + 944.399 = $4,079 Mil.
Gross Profit was 994.402 + 968.123 + 924.502 + 875.002 = $3,762 Mil.
Total Current Assets was $2,898 Mil.
Total Assets was $57,779 Mil.
Property, Plant and Equipment(Net PPE) was $1,302 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,895 Mil.
Selling, General, & Admin. Expense(SGA) was $145 Mil.
Total Current Liabilities was $1,891 Mil.
Long-Term Debt & Capital Lease Obligation was $21,225 Mil.
Net Income was 218.405 + 233.473 + 195.415 + 225.016 = $872 Mil.
Non Operating Income was -34.854 + -5.908 + -19.654 + 4.647 = $-56 Mil.
Cash Flow from Operations was 760.658 + 731.998 + 734.879 + 731.234 = $2,959 Mil.
Total Receivables was $1,501 Mil.
Revenue was 888.65 + 837.269 + 810.419 + 807.343 = $3,344 Mil.
Gross Profit was 819.561 + 784.55 + 758.239 + 755.001 = $3,117 Mil.
Total Current Assets was $1,773 Mil.
Total Assets was $49,673 Mil.
Property, Plant and Equipment(Net PPE) was $1,071 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,670 Mil.
Selling, General, & Admin. Expense(SGA) was $138 Mil.
Total Current Liabilities was $3,499 Mil.
Long-Term Debt & Capital Lease Obligation was $15,871 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)
=(2593.629 / 4078.993) / (1501.079 / 3343.681)
=0.63585 / 0.44893
=1.4164

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)
=(3117.351 / 3343.681) / (3762.029 / 4078.993)
=0.932311 / 0.922294
=1.0109

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 - (2897.717 + 1301.549) / 57779.357) / (1 - (1773.138 + 1071.017) / 49673.092)
=0.927322 / 0.942743
=0.9836

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
=4078.993 / 3343.681
=1.2199

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))
=(1670.389 / (1670.389 + 1071.017)) / (1895.177 / (1895.177 + 1301.549))
=0.609318 / 0.592849
=1.0278

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)
=(144.536 / 4078.993) / (138.459 / 3343.681)
=0.035434 / 0.041409
=0.8557

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)
=((21225.305 + 1890.713) / 57779.357) / ((15871.258 + 3498.808) / 49673.092)
=0.400074 / 0.389951
=1.026

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
=(872.309 - -55.769 - 2958.769) / 57779.357
=-0.035146

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.

Realtyome has a M-score of -2.05 suggests that the company is unlikely to be a manipulator.


Realtyome Beneish M-Score Related Terms

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Realtyome (Realtyome) Business Description

Address
11995 El Camino Real, San Diego, CA, USA, 92130
Realty Income owns roughly 13,100 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states and Puerto Rico and are leased to 250 tenants from 47 industries. Recent acquisitions have added industrial, gaming, office, manufacturing, and distribution properties, which make up roughly 17% of revenue.
Executives
A. Larry Chapman director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Neil Abraham officer: EVP, CIO 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Gregory J. Whyte officer: EVP, Chief Operating Officer C/O TIER REIT, INC., 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Mary Hogan Preusse director C/O KIMCO REALTY CORP., 3333 NEW HYDE PARK ROAD, NEW HYDE PARK NY 11042
Priscilla Almodovar director 45 WEST 10TH STREET, NEW YORK NY 10011
Shannon Kehle officer: EVP, Chief People Officer 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Ronald Merriman director 6175 NANCY RIDGE, SAN DIEGO CA 92121
Gregory Mclaughlin director 220 WEST CREST STREET, ESCONDIDO CA 92025
Jacqueline Valerie Brady director 53 CREEKVIEW LANE, YARDLEY PA 19067
Michelle Bushore officer: EVP, CLO, GC & Secretary 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Priya Cherian Huskins director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Christie B. Kelly director 600 E. 96TH ST., #100, INDIANAPOLIS IN 46240
Paul M Meurer officer: EVP CFO & Treasure
Michael R Pfeiffer officer: EVP Gen. Counsel & Sec.
Benjamin N Fox officer: SVP, Asset & Port. Mgmt. 11995 EL CAMINO REAL, SAN DIEGO CA 92130

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