Mori Hills Reit Investment (TSE:3234) Beneish M-Score : -2.32 (As of May. 11, 2024)

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What is Mori Hills Reit 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 -2.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Mori Hills Reit Investment's Beneish M-Score or its related term are showing as below:

TSE:3234' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04 Med: -2.69 Max: 0.72
Current: -2.32

During the past 13 years, the highest Beneish M-Score of Mori Hills Reit Investment was 0.72. The lowest was -3.04. And the median was -2.69.

Mori Hills Reit Investment Beneish M-Score Historical Data

The historical data trend for Mori Hills Reit 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.

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Mori Hills Reit Investment Beneish M-Score Chart

Mori Hills Reit Investment Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Beneish M-Score

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-2.69

-2.68

-2.85

-2.72

-2.32

Mori Hills Reit Investment Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.72	-	-2.32	-

Competitive Comparison of Mori Hills Reit Investment's Beneish M-Score

For the REIT - Diversified subindustry, Mori Hills Reit 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.

Mori Hills Reit Investment's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Mori Hills Reit Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Mori Hills Reit Investment's Beneish M-Score falls into.

Mori Hills Reit 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 Mori Hills Reit 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 * 1.2411

0.528 * 0.9795

0.404 * 1.0138

0.892 * 1.067

0.115 * 0.9798

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.346

4.679 * -0.01269

0.327 * 0.995

-2.32

This Year (Jul23) TTM:

Last Year (Jul22) TTM:

Total Receivables was 円224 Mil.
Revenue was 円22,426 Mil.
Gross Profit was 円15,433 Mil.
Total Current Assets was 円21,986 Mil.
Total Assets was 円414,888 Mil.
Property, Plant and Equipment(Net PPE) was 円360,249 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,186 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,340 Mil.
Total Current Liabilities was 円21,281 Mil.
Long-Term Debt & Capital Lease Obligation was 円173,622 Mil.
Net Income was 円12,829 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円18,094 Mil.

Total Receivables was 円169 Mil.
Revenue was 円21,018 Mil.
Gross Profit was 円14,168 Mil.
Total Current Assets was 円16,159 Mil.
Total Assets was 円412,893 Mil.
Property, Plant and Equipment(Net PPE) was 円364,680 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,168 Mil.
Selling, General, & Admin. Expense(SGA) was 円933 Mil.
Total Current Liabilities was 円17,720 Mil.
Long-Term Debt & Capital Lease Obligation was 円177,222 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)
	=	(224.435 / 22425.911)	/	(169.483 / 21017.841)
	=	0.010008	/	0.008064
	=	1.2411

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)
	=	(14167.992 / 21017.841)	/	(15433.355 / 22425.911)
	=	0.674094	/	0.688193
	=	0.9795

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 - (21985.841 + 360249.443) / 414888.123)	/	(1 - (16159.015 + 364680.085) / 412892.878)
	=	0.078703	/	0.077632
	=	1.0138

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
	=	22425.911	/	21017.841
	=	1.067

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))
	=	(2167.526 / (2167.526 + 364680.085))	/	(2185.864 / (2185.864 + 360249.443))
	=	0.005909	/	0.006031
	=	0.9798

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)
	=	(1339.605 / 22425.911)	/	(932.765 / 21017.841)
	=	0.059735	/	0.04438
	=	1.346

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)
	=	((173622 + 21281.381) / 414888.123)	/	((177222 + 17720.012) / 412892.878)
	=	0.469773	/	0.472137
	=	0.995

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
	=	(12828.763 - 0	-	18093.755)	/	414888.123
	=	-0.01269

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.

Mori Hills Reit Investment has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.

Mori Hills Reit Investment Beneish M-Score Related Terms

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Mori Hills Reit Investment (TSE:3234) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Mori Hills Reit Investment Corp (TSE:3234) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

12-32 Akasaka 1-chome, Minato-ku, Tokyo, JPN

Website

http://www.mori-hills-reit.co.jp

Mori Hills Reit Investment Corp is engaged in real estate investment, leasing, and management. The firm's primary objective is to secure steady growth in its portfolio and to maximize unitholders' value by making selective investments that mainly target areas and real estate properties. The company's real estate portfolio, as of the end of the twenty-first fiscal period, was comprised of ten properties. The company owns real estate primarily office buildings and residential and retail properties available for lease in Tokyo.

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