GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » CoStar Group Inc (NAS:CSGP) » Definitions » Beneish M-Score

CSGP (CoStar Group) Beneish M-Score : -2.65 (As of Oct. 31, 2024)


View and export this data going back to 1998. Start your Free Trial

What is CoStar Group 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CSGP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Med: -2.5   Max: -2.05
Current: -2.65

During the past 13 years, the highest Beneish M-Score of CoStar Group was -2.05. The lowest was -3.20. And the median was -2.50.


CoStar Group Beneish M-Score Historical Data

The historical data trend for CoStar Group'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.

CoStar Group Beneish M-Score Chart

CoStar Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.80 -3.20 -2.37 -2.35 -2.31

CoStar Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -2.34 -2.31 -2.44 -2.41 -2.65

Competitive Comparison of CoStar Group's Beneish M-Score

For the Real Estate Services subindustry, CoStar Group'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.


CoStar Group's Beneish M-Score Distribution in the Real Estate Industry

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

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



CoStar Group 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 CoStar Group 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 * 0.8304+0.528 * 1.0167+0.404 * 1.009+0.892 * 1.1166+0.115 * 1.5159
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2029+4.679 * -0.030092-0.327 * 1.0442
=-2.65

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $179 Mil.
Revenue was 692.6 + 677.8 + 656.4 + 640.1 = $2,667 Mil.
Gross Profit was 552 + 542 + 515.2 + 503.8 = $2,113 Mil.
Total Current Assets was $5,195 Mil.
Total Assets was $9,139 Mil.
Property, Plant and Equipment(Net PPE) was $1,017 Mil.
Depreciation, Depletion and Amortization(DDA) was $136 Mil.
Selling, General, & Admin. Expense(SGA) was $1,724 Mil.
Total Current Liabilities was $539 Mil.
Long-Term Debt & Capital Lease Obligation was $1,072 Mil.
Net Income was 53 + 19.2 + 6.7 + 96.5 = $175 Mil.
Non Operating Income was -1.6 + -1.5 + 3.2 + 3.8 = $4 Mil.
Cash Flow from Operations was 100.3 + 58.1 + 139.6 + 148.5 = $447 Mil.
Total Receivables was $193 Mil.
Revenue was 624.7 + 605.9 + 584.4 + 573.346 = $2,388 Mil.
Gross Profit was 501 + 493.5 + 465.2 + 464.16 = $1,924 Mil.
Total Current Assets was $5,499 Mil.
Total Assets was $8,772 Mil.
Property, Plant and Equipment(Net PPE) was $489 Mil.
Depreciation, Depletion and Amortization(DDA) was $107 Mil.
Selling, General, & Admin. Expense(SGA) was $1,283 Mil.
Total Current Liabilities was $413 Mil.
Long-Term Debt & Capital Lease Obligation was $1,068 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)
=(178.8 / 2666.9) / (192.831 / 2388.346)
=0.067044 / 0.080738
=0.8304

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)
=(1923.86 / 2388.346) / (2113 / 2666.9)
=0.80552 / 0.792306
=1.0167

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 - (5195.1 + 1017) / 9138.7) / (1 - (5498.724 + 488.953) / 8771.655)
=0.320242 / 0.317383
=1.009

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
=2666.9 / 2388.346
=1.1166

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))
=(106.717 / (106.717 + 488.953)) / (136.3 / (136.3 + 1017))
=0.179155 / 0.118183
=1.5159

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)
=(1723.7 / 2666.9) / (1283.288 / 2388.346)
=0.646331 / 0.537312
=1.2029

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)
=((1071.5 + 539.4) / 9138.7) / ((1067.685 + 413.063) / 8771.655)
=0.176272 / 0.168811
=1.0442

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
=(175.4 - 3.9 - 446.5) / 9138.7
=-0.030092

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.

CoStar Group has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.


CoStar Group Beneish M-Score Related Terms

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


CoStar Group Business Description

Traded in Other Exchanges
Address
1331 L Street, Northwest, WA, USA, 20005
CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties related to various subsectors including office, retail, hotels, multifamily, healthcare, industrial, self-storage, and data centers. It operates many flagship brands such as CoStar Suite, LoopNet, Apartments.com, BizBuySell, and Lands of America, with more than 80% of its revenue classified as subscription-based. The company recently expanded its presence in Canada, the United Kingdom, Spain, and France.
Executives
John W Hill director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Lisa Ruggles officer: Senior VP, Global Research C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Michael J Desmarais officer: Chief Human Resources Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Scott T Wheeler officer: Chief Financial Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Christopher J Nassetta director 77 WEST WACKER DRIVE, SUITE 3900, CHICAGO IL 60601
Angelique G. Brunner director C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203
Frank Simuro officer: Chief Technology Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Frederick G. Saint officer: President, Marketplaces LOOPNET, INC., 181 W. HUNTINGTON DRIVE, SUITE 208, MONROVIA CA 91016
Andrew C Florance director, officer: President and CEO C/O COSTAR GROUP INC, 1331 L STREET, NW, WASHINGTON DC 20005
Michael R Klein director 2001 K STREET, N.W., SUITE 206, WASHINGTON DC 20006
Gene Boxer officer: General Counsel and Secretary 14 WESLEY STREET, HAMILTON D0 HM11
Kaplan Laura Cox director C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Matthew Linnington officer: Executive Vice President Sales C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
David Jay Steinberg director C/O COSTAR GROUP, INC., 1331 L STREET, NW, WASHINGTON DC 20005
Robert W Musslewhite director 2445 M STREET, NW, WASHINGTON DC 20037