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NEPI Rockcastle NV (JSE:NRP) Beneish M-Score : -2.02 (As of May. 12, 2024)


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What is NEPI Rockcastle NV 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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:NRP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95   Med: -2.18   Max: -1.81
Current: -2.02

During the past 13 years, the highest Beneish M-Score of NEPI Rockcastle NV was -1.81. The lowest was -2.95. And the median was -2.18.


NEPI Rockcastle NV Beneish M-Score Historical Data

The historical data trend for NEPI Rockcastle NV'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.

NEPI Rockcastle NV Beneish M-Score Chart

NEPI Rockcastle NV 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 -2.38 -2.95 -2.17 -2.18 -2.02

NEPI Rockcastle NV Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -2.17 - -2.18 - -2.02

Competitive Comparison of NEPI Rockcastle NV's Beneish M-Score

For the Real Estate - Diversified subindustry, NEPI Rockcastle NV'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.


NEPI Rockcastle NV's Beneish M-Score Distribution in the Real Estate Industry

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

* The bar in red indicates where NEPI Rockcastle NV's Beneish M-Score falls into.



NEPI Rockcastle NV 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 NEPI Rockcastle NV 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 * 1.0146+0.528 * 1.0073+0.404 * 0.9906+0.892 * 1.3646+0.115 * 1.1838
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9191+4.679 * 0.014436-0.327 * 0.9402
=-2.02

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was R1,639 Mil.
Revenue was R15,534 Mil.
Gross Profit was R9,981 Mil.
Total Current Assets was R9,318 Mil.
Total Assets was R154,699 Mil.
Property, Plant and Equipment(Net PPE) was R96 Mil.
Depreciation, Depletion and Amortization(DDA) was R30 Mil.
Selling, General, & Admin. Expense(SGA) was R310 Mil.
Total Current Liabilities was R14,746 Mil.
Long-Term Debt & Capital Lease Obligation was R42,166 Mil.
Net Income was R9,688 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R7,455 Mil.
Total Receivables was R1,184 Mil.
Revenue was R11,383 Mil.
Gross Profit was R7,367 Mil.
Total Current Assets was R6,723 Mil.
Total Assets was R130,886 Mil.
Property, Plant and Equipment(Net PPE) was R69 Mil.
Depreciation, Depletion and Amortization(DDA) was R27 Mil.
Selling, General, & Admin. Expense(SGA) was R247 Mil.
Total Current Liabilities was R3,708 Mil.
Long-Term Debt & Capital Lease Obligation was R47,504 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)
=(1639.3 / 15533.537) / (1183.973 / 11383.255)
=0.105533 / 0.10401
=1.0146

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)
=(7367.339 / 11383.255) / (9981.024 / 15533.537)
=0.647208 / 0.642547
=1.0073

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 - (9317.965 + 96.415) / 154698.751) / (1 - (6723.458 + 69.193) / 130885.749)
=0.939144 / 0.948102
=0.9906

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
=15533.537 / 11383.255
=1.3646

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))
=(26.89 / (26.89 + 69.193)) / (29.849 / (29.849 + 96.415))
=0.279862 / 0.236402
=1.1838

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)
=(309.788 / 15533.537) / (247.009 / 11383.255)
=0.019943 / 0.021699
=0.9191

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)
=((42165.803 + 14745.778) / 154698.751) / ((47504.496 + 3708.116) / 130885.749)
=0.367886 / 0.391277
=0.9402

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
=(9688.264 - 0 - 7455.071) / 154698.751
=0.014436

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.

NEPI Rockcastle NV has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.


NEPI Rockcastle NV Beneish M-Score Related Terms

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NEPI Rockcastle NV (JSE:NRP) Business Description

Traded in Other Exchanges
Address
Claude Debussylaan 7-29, Tribes Offices SOM Building 3rd Floor, Amsterdam, NH, NLD, 1082MC
NEPI Rockcastle NV is a commercial property investor and developer. The business activities of the group have functioned through Retail, Office, Residential, Industrial, and Corporate segments. The Retail segment acquires, develops and leases retail properties in Romania, Slovakia, Czech Republic, Serbia, and Croatia; the Office segment acquires, develops and leases office properties in Romania and Slovakia; the Industrial segment acquires, develops and leases industrial facilities in Romania, and Corporate segment focuses on activities related to financing expenses. The vast majority of its contracted rentable areas are occupied by large tenants and major franchises. The company generates revenue from rent and expense recovery.