Elme Communities (FRA:WRI) Beneish M-Score : -2.93 (As of May. 08, 2024)

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

What is Elme Communities 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 -2.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:WRI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5 Med: -2.62 Max: -1.63
Current: -2.93

During the past 13 years, the highest Beneish M-Score of Elme Communities was -1.63. The lowest was -3.50. And the median was -2.62.

Elme Communities Beneish M-Score Historical Data

The historical data trend for Elme Communities'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.

Elme Communities Beneish M-Score Chart

Elme Communities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.85

-3.42

-2.05

-2.56

-2.68

Elme Communities Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.66	-2.69	-2.77	-2.68	-2.93

Competitive Comparison of Elme Communities's Beneish M-Score

For the REIT - Residential subindustry, Elme Communities'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.

Elme Communities's Beneish M-Score Distribution in the REITs Industry

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

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

Elme Communities 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 Elme Communities 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 * 0.7677

0.528 * 1.0087

0.404 * 1.0163

0.892 * 1.0273

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8427

4.679 * -0.053062

0.327 * 1.2031

-2.95

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €11.9 Mil.
Revenue was 54.752 + 53.967 + 53.082 + 52.241 = €214.0 Mil.
Gross Profit was 32.73 + 33.353 + 32.719 + 31.532 = €130.3 Mil.
Total Current Assets was €18.2 Mil.
Total Assets was €1,726.4 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €85.3 Mil.
Selling, General, & Admin. Expense(SGA) was €23.3 Mil.
Total Current Liabilities was €194.5 Mil.
Long-Term Debt & Capital Lease Obligation was €480.7 Mil.
Net Income was -3.355 + -2.847 + -40.87 + -2.41 = €-49.5 Mil.
Non Operating Income was 1.297 + 0 + -40.146 + -1.74 = €-40.6 Mil.
Cash Flow from Operations was 19.519 + 20.956 + 14.585 + 27.654 = €82.7 Mil.

Total Receivables was €15.0 Mil.
Revenue was 52.126 + 52.48 + 55.149 + 48.605 = €208.4 Mil.
Gross Profit was 32.241 + 32.96 + 33.457 + 29.326 = €128.0 Mil.
Total Current Assets was €45.8 Mil.
Total Assets was €1,732.6 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €87.4 Mil.
Selling, General, & Admin. Expense(SGA) was €27.0 Mil.
Total Current Liabilities was €75.9 Mil.
Long-Term Debt & Capital Lease Obligation was €487.3 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)
	=	(11.855 / 214.042)	/	(15.033 / 208.36)
	=	0.055386	/	0.072149
	=	0.7677

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)
	=	(127.984 / 208.36)	/	(130.334 / 214.042)
	=	0.614245	/	0.608918
	=	1.0087

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 - (18.206 + 0) / 1726.416)	/	(1 - (45.788 + 0) / 1732.569)
	=	0.989454	/	0.973572
	=	1.0163

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
	=	214.042	/	208.36
	=	1.0273

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))
	=	(87.351 / (87.351 + 0))	/	(85.333 / (85.333 + 0))
	=	1	/	1
	=	1

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)
	=	(23.333 / 214.042)	/	(26.952 / 208.36)
	=	0.109011	/	0.129353
	=	0.8427

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)
	=	((480.736 + 194.452) / 1726.416)	/	((487.325 + 75.889) / 1732.569)
	=	0.391092	/	0.325074
	=	1.2031

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
	=	(-49.482 - -40.589	-	82.714)	/	1726.416
	=	-0.053062

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.

Elme Communities has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

Elme Communities Beneish M-Score Related Terms

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

Elme Communities (FRA:WRI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Elme Communities (FRA:WRI) » Definitions » Beneish M-Score

Comparable Companies

VRE AIV UMH CSR NXRT BRT FREVS BHM CLPR IRT AVB EQR INVH ESS MAA SUI AMH UDR ELS CPT

Traded in Other Exchanges

ELME:USA

Address

1775 Eye Street North West, Suite 1000, Washington, DC, USA, 20006

Website

https://www.elmecommunities.com

Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located primarily near major transportation nodes. Washington REIT derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Washington REIT's largest tenants are banking, consulting, law, and financial services firms.