Kenedix Residential Next Investment (TSE:3278) Beneish M-Score : -2.98 (As of Apr. 26, 2024)

View and export this data going back to 2012. Start your Free Trial

What is Kenedix Residential Next Investment 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 -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:3278' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98 Med: -2.57 Max: 1.09
Current: -2.98

During the past 10 years, the highest Beneish M-Score of Kenedix Residential Next Investment was 1.09. The lowest was -2.98. And the median was -2.57.

Kenedix Residential Next Investment Beneish M-Score Historical Data

The historical data trend for Kenedix Residential Next Investment'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.

Kenedix Residential Next Investment Beneish M-Score Chart

Kenedix Residential Next Investment Annual Data

Trend

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Beneish M-Score

Get a 7-Day Free Trial

-1.84

-2.45

-2.68

1.09

-2.98

Kenedix Residential Next Investment Semi-Annual Data
	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23
Beneish M-Score	Get a 7-Day Free Trial															-	1.09	-	-2.98	-

Competitive Comparison of Kenedix Residential Next Investment's Beneish M-Score

For the REIT - Residential subindustry, Kenedix Residential Next Investment'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.

Kenedix Residential Next Investment's Beneish M-Score Distribution in the REITs Industry

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

* The bar in red indicates where Kenedix Residential Next Investment's Beneish M-Score falls into.

Kenedix Residential Next Investment 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 Kenedix Residential Next Investment 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 * 0.3209

0.528 * 1.0038

0.404 * 1.3113

0.892 * 1.0576

0.115 * 1.0218

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9796

4.679 * -0.012594

0.327 * 1.0083

-2.98

This Year (Jul22) TTM:

Last Year (Jul21) TTM:

Total Receivables was 円57 Mil.
Revenue was 円18,591 Mil.
Gross Profit was 円11,784 Mil.
Total Current Assets was 円25,596 Mil.
Total Assets was 円315,887 Mil.
Property, Plant and Equipment(Net PPE) was 円286,982 Mil.
Depreciation, Depletion and Amortization(DDA) was 円3,257 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,495 Mil.
Total Current Liabilities was 円21,170 Mil.
Long-Term Debt & Capital Lease Obligation was 円141,170 Mil.
Net Income was 円8,241 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円12,220 Mil.

Total Receivables was 円168 Mil.
Revenue was 円17,579 Mil.
Gross Profit was 円11,184 Mil.
Total Current Assets was 円27,745 Mil.
Total Assets was 円293,177 Mil.
Property, Plant and Equipment(Net PPE) was 円263,090 Mil.
Depreciation, Depletion and Amortization(DDA) was 円3,052 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,443 Mil.
Total Current Liabilities was 円25,454 Mil.
Long-Term Debt & Capital Lease Obligation was 円123,970 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)
	=	(57.058 / 18590.765)	/	(168.096 / 17578.523)
	=	0.003069	/	0.009563
	=	0.3209

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)
	=	(11184.158 / 17578.523)	/	(11783.883 / 18590.765)
	=	0.63624	/	0.633857
	=	1.0038

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 - (25595.814 + 286981.571) / 315886.678)	/	(1 - (27745.09 + 263089.757) / 293176.951)
	=	0.010476	/	0.007989
	=	1.3113

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
	=	18590.765	/	17578.523
	=	1.0576

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))
	=	(3051.991 / (3051.991 + 263089.757))	/	(3257.215 / (3257.215 + 286981.571))
	=	0.011468	/	0.011223
	=	1.0218

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)
	=	(1494.828 / 18590.765)	/	(1442.929 / 17578.523)
	=	0.080407	/	0.082085
	=	0.9796

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)
	=	((141170 + 21170.239) / 315886.678)	/	((123970 + 25453.849) / 293176.951)
	=	0.513919	/	0.509671
	=	1.0083

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
	=	(8241.448 - 0	-	12219.833)	/	315886.678
	=	-0.012594

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.

Kenedix Residential Next Investment has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.

Kenedix Residential Next Investment Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Kenedix Residential Next Investment's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Kenedix Residential Next Investment (TSE:3278) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Kenedix Residential Next Investment Corp (TSE:3278) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo, JPN, 105-0004

Website

https://www.kdr-reit.com

Kenedix Residential Next Investment Corp is a Japanese real estate investment trust that acquires, owns, and leases residential properties throughout Japan. In terms of total acquisition price, the majority of the company's real estate portfolio is composed of residential developments in the Tokyo Metropolitan Area. The rest of Kenedix Residential's holdings are located in other Japanese regional areas. The vast majority of the company's assets are split between small family and studio residential units. Family dwellings also make up a sizable amount of Kenedix's portfolio. The company derives nearly all of its operating income in the form of rental revenue from leasing its properties to tenants. Small family residential units contribute the largest share of this income.

Kenedix Residential Next Investment (TSE:3278) Headlines

No Headlines