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Sunstone Hotel Investors Beneish M-Score

: -1.45 (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.

Warning Sign:

Beneish M-Score -1.45 higher than -1.78, which implies that the company might have manipulated its financial results.

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

SHO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Med: -2.59   Max: 27.93
Current: -1.45

During the past 13 years, the highest Beneish M-Score of Sunstone Hotel Investors was 27.93. The lowest was -3.81. And the median was -2.59.


Sunstone Hotel Investors Beneish M-Score Historical Data

The historical data trend for Sunstone Hotel Investors'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.

Sunstone Hotel Investors 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 -2.83 -2.69 -2.58 0.51 -1.56

Sunstone Hotel Investors 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 13.50 3.77 -1.56 -0.40 -1.45

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors'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.

   

Sunstone Hotel Investors Beneish M-Score Distribution

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

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



Sunstone Hotel Investors 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 Sunstone Hotel Investors 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 * 0.5151+0.528 * 0.3155+0.404 * 1.0339+0.892 * 3.2672+0.115 * 0.7474
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6466+4.679 * -0.0456-0.327 * 1.0591
=-1.45

* 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 $42.2 Mil.
Revenue was 251.28 + 172.315 + 173.886 + 167.421 = $764.9 Mil.
Gross Profit was 135.662 + 78.394 + 79.133 + 75.703 = $368.9 Mil.
Total Current Assets was $209.2 Mil.
Total Assets was $3,086.6 Mil.
Property, Plant and Equipment(Net PPE) was $24.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $127.4 Mil.
Selling, General, & Admin. Expense(SGA) was $183.6 Mil.
Total Current Liabilities was $151.9 Mil.
Long-Term Debt & Capital Lease Obligation was $822.2 Mil.
Net Income was 35.349 + 13.989 + 137.989 + -23.057 = $164.3 Mil.
Non Operating Income was 0.021 + 22.733 + 150.425 + -0.953 = $172.2 Mil.
Cash Flow from Operations was 77.505 + 13.148 + 19.966 + 22.327 = $132.9 Mil.
Total Receivables was $25.0 Mil.
Revenue was 117.21 + 50.633 + 37.36 + 28.91 = $234.1 Mil.
Gross Profit was 52.345 + 11.003 + -6.998 + -20.723 = $35.6 Mil.
Total Current Assets was $242.8 Mil.
Total Assets was $3,015.4 Mil.
Property, Plant and Equipment(Net PPE) was $76.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $129.3 Mil.
Selling, General, & Admin. Expense(SGA) was $86.9 Mil.
Total Current Liabilities was $113.7 Mil.
Long-Term Debt & Capital Lease Obligation was $784.7 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)
=(42.151 / 764.902) / (25.044 / 234.113)
=0.05510641 / 0.10697398
=0.5151

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)
=(35.627 / 234.113) / (368.892 / 764.902)
=0.15217865 / 0.48227355
=0.3155

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 - (209.228 + 24.273) / 3086.623) / (1 - (242.845 + 76.642) / 3015.362)
=0.92435066 / 0.89404688
=1.0339

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
=764.902 / 234.113
=3.2672

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))
=(129.265 / (129.265 + 76.642)) / (127.412 / (127.412 + 24.273))
=0.62778342 / 0.83997759
=0.7474

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)
=(183.562 / 764.902) / (86.884 / 234.113)
=0.23998107 / 0.37111993
=0.6466

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)
=((822.172 + 151.888) / 3086.623) / ((784.721 + 113.724) / 3015.362)
=0.31557466 / 0.29795593
=1.0591

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
=(164.27 - 172.226 - 132.946) / 3086.623
=-0.0456

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.

Sunstone Hotel Investors has a M-score of -1.45 signals that the company is likely to be a manipulator.


Sunstone Hotel Investors Beneish M-Score Related Terms

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Sunstone Hotel Investors Business Description

Sunstone Hotel Investors logo
Address
200 Spectrum Center Drive, 21st Floor, Irvine, CA, USA, 92618
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.
Executives
Reyes Aaron Robert officer: Chief Financial Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Mims Verett Ann director 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Leslie Kristina M director DREAMWORKS ANIMATION SKG, INC. 1000 FLOWER STREET GLENDALE CA 91201
Ostapovicz Christopher Gerard officer: Chief Operating Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Digilio Monica S director ONE CAESARS PALACE DRIVE LAS VEGAS NV 89109
Klein David M officer: SVP - General Counsel 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Baird W Blake director 1411 SAND ISLAND PARKWAY HONOLULU HI 96819
Mccabe Murray J. director 1170 PEACHTREE STREET NE SUITE 600 ATLANTA GA 30309
Sloan David Ryan officer: SVP- General Counsel 120 VANTIS SUITE 350 ALISO VIEJO CA 92656
Monge Lindsay Newton officer: SVP - Treasurer & Secretary 120 VANTIS SUITE 350 ALISO VIEJO CA 92656
Giglia Bryan Albert officer: SVP - Chief Financial Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Springer Robert C officer: SVP - Acquisitions 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Batinovich Andrew director 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Pasquale Douglas M director 245 FICHER AVE STE D-1 COSTA MESA CA 92626
Arabia John V officer: Executive Vice President - CFO 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618

Sunstone Hotel Investors Headlines

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