Daiwa House REIT Investment (TSE:8984) Beneish M-Score : -2.66 (As of May. 13, 2024)

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What is Daiwa House 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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Daiwa House REIT Investment's Beneish M-Score or its related term are showing as below:

TSE:8984' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66 Med: -2.43 Max: -0.8
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Daiwa House REIT Investment was -0.80. The lowest was -2.66. And the median was -2.43.

Daiwa House REIT Investment Beneish M-Score Historical Data

The historical data trend for Daiwa House 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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Daiwa House REIT Investment Beneish M-Score Chart

Daiwa House REIT Investment Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Beneish M-Score

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-2.66

-1.94

-2.56

-2.66

Daiwa House REIT Investment Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.66	-	-2.66	-

Competitive Comparison of Daiwa House REIT Investment's Beneish M-Score

For the REIT - Diversified subindustry, Daiwa House 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.

Daiwa House REIT Investment's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Daiwa House REIT Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Daiwa House REIT Investment's Beneish M-Score falls into.

Daiwa House 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 Daiwa House 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 * 0.9126

0.528 * 1.0078

0.404 * 0.9412

0.892 * 0.9963

0.115 * 0.9971

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0131

4.679 * -0.015687

0.327 * 1.003

-2.66

This Year (Aug23) TTM:

Last Year (Aug22) TTM:

Total Receivables was 円286 Mil.
Revenue was 円59,411 Mil.
Gross Profit was 円34,617 Mil.
Total Current Assets was 円55,891 Mil.
Total Assets was 円958,747 Mil.
Property, Plant and Equipment(Net PPE) was 円839,687 Mil.
Depreciation, Depletion and Amortization(DDA) was 円15,193 Mil.
Selling, General, & Admin. Expense(SGA) was 円4,090 Mil.
Total Current Liabilities was 円53,066 Mil.
Long-Term Debt & Capital Lease Obligation was 円362,850 Mil.
Net Income was 円22,348 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円37,388 Mil.

Total Receivables was 円314 Mil.
Revenue was 円59,633 Mil.
Gross Profit was 円35,018 Mil.
Total Current Assets was 円51,078 Mil.
Total Assets was 円963,566 Mil.
Property, Plant and Equipment(Net PPE) was 円845,033 Mil.
Depreciation, Depletion and Amortization(DDA) was 円15,245 Mil.
Selling, General, & Admin. Expense(SGA) was 円4,053 Mil.
Total Current Liabilities was 円45,125 Mil.
Long-Term Debt & Capital Lease Obligation was 円371,650 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)
	=	(285.942 / 59410.514)	/	(314.491 / 59633.028)
	=	0.004813	/	0.005274
	=	0.9126

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)
	=	(35018.116 / 59633.028)	/	(34617.212 / 59410.514)
	=	0.587227	/	0.582678
	=	1.0078

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 - (55891.421 + 839686.634) / 958747.29)	/	(1 - (51078.366 + 845032.844) / 963566.274)
	=	0.065887	/	0.070006
	=	0.9412

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
	=	59410.514	/	59633.028
	=	0.9963

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))
	=	(15244.57 / (15244.57 + 845032.844))	/	(15192.694 / (15192.694 + 839686.634))
	=	0.017721	/	0.017772
	=	0.9971

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)
	=	(4090.238 / 59410.514)	/	(4052.613 / 59633.028)
	=	0.068847	/	0.067959
	=	1.0131

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)
	=	((362850 + 53066.067) / 958747.29)	/	((371650 + 45125.362) / 963566.274)
	=	0.433812	/	0.432534
	=	1.003

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
	=	(22348.17 - 0	-	37387.891)	/	958747.29
	=	-0.015687

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.

Daiwa House REIT Investment has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.

Daiwa House REIT Investment Beneish M-Score Related Terms

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Daiwa House REIT Investment (TSE:8984) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Daiwa House REIT Investment Corp (TSE:8984) » Definitions » Beneish M-Score

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Address

2-4-8, Nagatacho, 7th Floor, Nissei Nagatacho Building, Chiyoda-ku, Tokyo, JPN, 100-0014

Website

https://www.daiwahouse-reit.co.jp

Daiwa House REIT Investment Corp is a diversified real estate investment trust which invests in real estate properties. Its core assets are logistics properties, residential properties, retail properties, and hotels. It invests mainly in three metropolitan areas the greater Tokyo area, the greater Nagoya area, and the greater Osaka area. The firm's portfolio consists of assets with various risk-return profiles. It generates revenue from rental activity on a straight-line accrual basis over the life of each lease contract. The company operates only in Japan.

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