Wall Financial (TSX:WFC) Beneish M-Score

: -2.48 (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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:WFC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67 Med: -1.91 Max: 2.49
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Wall Financial was 2.49. The lowest was -3.67. And the median was -1.91.

Wall Financial Beneish M-Score Historical Data

The historical data trend for Wall Financial'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.

Wall Financial Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Beneish M-Score

-2.70

-3.67

2.49

-3.20

-3.28

Wall Financial Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
Beneish M-Score																-2.64	-3.28	-2.83	-2.85	-2.48

Competitive Comparison

For the Real Estate - Development subindustry, Wall Financial'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.

Wall Financial Beneish M-Score Distribution

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

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

Wall Financial 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 Wall Financial 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 * 0.9707

0.528 * 0.9213

0.404 * 0.9807

0.892 * 1.0735

0.115 * 1.2238

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0362

4.679 * 0.01066

0.327 * 1.1677

-2.48

This Year (Oct23) TTM:

Last Year (Oct22) TTM:

Total Receivables was C$16.5 Mil.
Revenue was 45.511 + 44.895 + 32.205 + 30.724 = C$153.3 Mil.
Gross Profit was 23.673 + 22.965 + 13.584 + 11.397 = C$71.6 Mil.
Total Current Assets was C$91.0 Mil.
Total Assets was C$893.6 Mil.
Property, Plant and Equipment(Net PPE) was C$107.1 Mil.
Depreciation, Depletion and Amortization(DDA) was C$12.2 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.4 Mil.
Total Current Liabilities was C$338.3 Mil.
Long-Term Debt & Capital Lease Obligation was C$331.7 Mil.
Net Income was 9.773 + 9.178 + 2.731 + 1.66 = C$23.3 Mil.
Non Operating Income was 0.148 + 0.124 + 0.015 + 0.015 = C$0.3 Mil.
Cash Flow from Operations was 8.029 + 2.34 + -3.745 + 6.89 = C$13.5 Mil.

Total Receivables was C$15.9 Mil.
Revenue was 39.829 + 40.923 + 32.876 + 29.215 = C$142.8 Mil.
Gross Profit was 18.963 + 19.903 + 13.132 + 9.467 = C$61.5 Mil.
Total Current Assets was C$66.0 Mil.
Total Assets was C$845.2 Mil.
Property, Plant and Equipment(Net PPE) was C$108.4 Mil.
Depreciation, Depletion and Amortization(DDA) was C$15.5 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.0 Mil.
Total Current Liabilities was C$271.1 Mil.
Long-Term Debt & Capital Lease Obligation was C$271.6 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)
	=	(16.541 / 153.335)	/	(15.875 / 142.843)
	=	0.107875	/	0.111136
	=	0.9707

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)
	=	(61.465 / 142.843)	/	(71.619 / 153.335)
	=	0.430298	/	0.467075
	=	0.9213

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 - (90.994 + 107.114) / 893.64)	/	(1 - (65.99 + 108.439) / 845.195)
	=	0.778313	/	0.793623
	=	0.9807

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
	=	153.335	/	142.843
	=	1.0735

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))
	=	(15.481 / (15.481 + 108.439))	/	(12.177 / (12.177 + 107.114))
	=	0.124927	/	0.102078
	=	1.2238

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)
	=	(4.426 / 153.335)	/	(3.979 / 142.843)
	=	0.028865	/	0.027856
	=	1.0362

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)
	=	((331.695 + 338.328) / 893.64)	/	((271.6 + 271.071) / 845.195)
	=	0.749768	/	0.642066
	=	1.1677

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
	=	(23.342 - 0.302	-	13.514)	/	893.64
	=	0.01066

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.

Wall Financial has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.

Wall Financial Beneish M-Score Related Terms

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Wall Financial (TSX:WFC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Wall Financial Corp (TSX:WFC) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

1010 Burrard Street, Vancouver, BC, CAN, V6Z 2R9

Website

http://www.wallfinancialcorp.ca

Wall Financial Corp is in the development and management of residential rental units, the development and construction of residential housing for resale, and the development and management of hotel properties. It owns and manages two hotel properties in Metro Vancouver namely the Sheraton Vancouver Wall Centre Hotel and the Westin Wall Centre Vancouver Airport Hotel. It operates in three segments of the real estate industry namely, Ownership and management of revenue-producing residential and commercial properties (Rental), Ownership and management of hotel properties (Hotel), and the development and sale of residential housing (Development).