Taylor Morrison Home (FRA:THM) Beneish M-Score : -2.19 (As of May. 07, 2024)

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What is Taylor Morrison Home 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:THM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09 Med: -2.4 Max: -1.76
Current: -2.19

During the past 13 years, the highest Beneish M-Score of Taylor Morrison Home was -1.76. The lowest was -3.09. And the median was -2.40.

Taylor Morrison Home Beneish M-Score Historical Data

The historical data trend for Taylor Morrison Home'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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Taylor Morrison Home Beneish M-Score Chart

Taylor Morrison Home Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.74

-2.28

-1.97

-2.21

-2.41

Taylor Morrison Home 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															-2.39	-2.52	-2.58	-2.41	-2.19

Competitive Comparison of Taylor Morrison Home's Beneish M-Score

For the Residential Construction subindustry, Taylor Morrison Home'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.

Taylor Morrison Home's Beneish M-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Taylor Morrison Home's Beneish M-Score falls into.

Taylor Morrison Home 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 Taylor Morrison Home 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 * 1.0855

0.528 * 1.0637

0.404 * 1.0092

0.892 * 0.8778

0.115 * 0.9778

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2105

4.679 * 0.059262

0.327 * 0.8797

-2.20

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €175 Mil.
Revenue was 1563.772 + 1852.216 + 1569.986 + 1901.901 = €6,888 Mil.
Gross Profit was 383.497 + 451.259 + 367.04 + 461.209 = €1,663 Mil.
Total Current Assets was €6,658 Mil.
Total Assets was €8,198 Mil.
Property, Plant and Equipment(Net PPE) was €527 Mil.
Depreciation, Depletion and Amortization(DDA) was €34 Mil.
Selling, General, & Admin. Expense(SGA) was €656 Mil.
Total Current Liabilities was €804 Mil.
Long-Term Debt & Capital Lease Obligation was €2,001 Mil.
Net Income was 175.048 + 158.26 + 159.937 + 216.538 = €710 Mil.
Non Operating Income was 1.984 + -72.628 + -1.221 + -4.95 = €-77 Mil.
Cash Flow from Operations was -120.278 + 234.393 + -52.987 + 239.668 = €301 Mil.

Total Receivables was €183 Mil.
Revenue was 1552.174 + 2352.567 + 2054.99 + 1887.292 = €7,847 Mil.
Gross Profit was 373.195 + 566.228 + 563.519 + 512.24 = €2,015 Mil.
Total Current Assets was €6,375 Mil.
Total Assets was €7,823 Mil.
Property, Plant and Equipment(Net PPE) was €491 Mil.
Depreciation, Depletion and Amortization(DDA) was €31 Mil.
Selling, General, & Admin. Expense(SGA) was €617 Mil.
Total Current Liabilities was €806 Mil.
Long-Term Debt & Capital Lease Obligation was €2,237 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)
	=	(174.589 / 6887.875)	/	(183.236 / 7847.023)
	=	0.025347	/	0.023351
	=	1.0855

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)
	=	(2015.182 / 7847.023)	/	(1663.005 / 6887.875)
	=	0.256808	/	0.241439
	=	1.0637

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 - (6657.724 + 526.868) / 8197.516)	/	(1 - (6374.584 + 490.857) / 7823.359)
	=	0.123565	/	0.122443
	=	1.0092

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
	=	6887.875	/	7847.023
	=	0.8778

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))
	=	(30.742 / (30.742 + 490.857))	/	(33.794 / (33.794 + 526.868))
	=	0.058938	/	0.060275
	=	0.9778

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)
	=	(655.9 / 6887.875)	/	(617.297 / 7847.023)
	=	0.095225	/	0.078666
	=	1.2105

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)
	=	((2000.666 + 804.404) / 8197.516)	/	((2236.718 + 806.338) / 7823.359)
	=	0.342185	/	0.388971
	=	0.8797

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
	=	(709.783 - -76.815	-	300.796)	/	8197.516
	=	0.059262

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.

Taylor Morrison Home has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.

Taylor Morrison Home Beneish M-Score Related Terms

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Taylor Morrison Home (FRA:THM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Taylor Morrison Home Corp (FRA:THM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TMHC:USA

Address

4900 N. Scottsdale Road, Suite 2000, Scottsdale, AZ, USA, 85251

Website

https://www.taylormorrison.com

Taylor Morrison Home is an American residential construction company that builds single-family homes and communities throughout California, Arizona, Texas, Illinois, Colorado, Florida, Georgia, and North Carolina. Taylor Morrison also reports via a mortgage operations segment that provides financing services for its homebuyers. It constructs various types of single-family homes, from entry-level to luxury move-up homes, as well as active adult communities. The majority of the company's revenue is derived from its construction projects, with the West and central operating regions leading the way.