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Star Holdings (Star Holdings) Beneish M-Score : -2.93 (As of May. 14, 2024)


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What is Star Holdings 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 Star Holdings's Beneish M-Score or its related term are showing as below:

STHO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93   Med: -2.93   Max: -2.93
Current: -2.93

During the past 3 years, the highest Beneish M-Score of Star Holdings was -2.93. The lowest was -2.93. And the median was -2.93.


Star Holdings Beneish M-Score Historical Data

The historical data trend for Star Holdings'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.

Star Holdings Beneish M-Score Chart

Star Holdings Annual Data
Trend Dec21 Dec22 Dec23
Beneish M-Score
- - -2.93

Star Holdings Quarterly Data
Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - -2.93 -

Competitive Comparison of Star Holdings's Beneish M-Score

For the Real Estate Services subindustry, Star Holdings'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.


Star Holdings's Beneish M-Score Distribution in the Real Estate Industry

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

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



Star Holdings 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 Star Holdings 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 * 0.9822+0.528 * -8.5081+0.404 * 0.9519+0.892 * 1.1941+0.115 * 0.8175
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0253+4.679 * -0.002947-0.327 * 1.0674
=-7.42

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $26.3 Mil.
Revenue was 20.496 + 49.777 + 26.702 + 19.528 = $116.5 Mil.
Gross Profit was -3.626 + 15.455 + -5.065 + -5.223 = $1.5 Mil.
Total Current Assets was $82.5 Mil.
Total Assets was $622.9 Mil.
Property, Plant and Equipment(Net PPE) was $178.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.7 Mil.
Selling, General, & Admin. Expense(SGA) was $29.5 Mil.
Total Current Liabilities was $235.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1.4 Mil.
Net Income was -48.981 + 66.134 + -81.814 + -89.961 = $-154.6 Mil.
Non Operating Income was -37.919 + 75.544 + -80.635 + -77.381 = $-120.4 Mil.
Cash Flow from Operations was -14.23 + -5.744 + -8.319 + -4.102 = $-32.4 Mil.
Total Receivables was $22.5 Mil.
Revenue was 13.365 + 32.007 + 18.511 + 33.685 = $97.6 Mil.
Gross Profit was -6.205 + 11.726 + -13.692 + -2.809 = $-11.0 Mil.
Total Current Assets was $92.7 Mil.
Total Assets was $813.1 Mil.
Property, Plant and Equipment(Net PPE) was $224.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General, & Admin. Expense(SGA) was $24.1 Mil.
Total Current Liabilities was $289.2 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 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)
=(26.332 / 116.503) / (22.453 / 97.568)
=0.22602 / 0.230127
=0.9822

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)
=(-10.98 / 97.568) / (1.541 / 116.503)
=-0.112537 / 0.013227
=-8.5081

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 - (82.45 + 178.823) / 622.905) / (1 - (92.691 + 224.489) / 813.12)
=0.580557 / 0.609922
=0.9519

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
=116.503 / 97.568
=1.1941

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))
=(4.775 / (4.775 + 224.489)) / (4.675 / (4.675 + 178.823))
=0.020828 / 0.025477
=0.8175

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)
=(29.494 / 116.503) / (24.091 / 97.568)
=0.253161 / 0.246915
=1.0253

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)
=((1.428 + 235.015) / 622.905) / ((0 + 289.16) / 813.12)
=0.379581 / 0.355618
=1.0674

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
=(-154.622 - -120.391 - -32.395) / 622.905
=-0.002947

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.

Star Holdings has a M-score of -7.42 suggests that the company is unlikely to be a manipulator.


Star Holdings Beneish M-Score Related Terms

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Star Holdings (Star Holdings) Business Description

Traded in Other Exchanges
Address
1114 Avenue of the Americas,, 39th Floor, New York, NY, USA, 10036
Star Holdings engages in non-ground lease-related businesses, including real estate finance, operating properties, and land and development. Its portfolio is comprised primarily of its interests in Asbury and Magnolia Green residential development projects, a portfolio of commercial real estate properties, and loans that are being marketed for sale. It focuses on realizing value for shareholders from the legacy portfolio primarily by maximizing cash flows through active asset management and asset sales.
Executives
Brett Asnas officer: Chief Financial Officer C/O ISTAR, 1114 AVENUE OF THE AMERICAS, FL. 39, NEW YORK NY 10036
Garett Rosenblum officer: CHIEF ACCOUNTING OFFICER C/O ISTAR, 1114 AVENUE OF THE AMERICAS, FL. 39, NEW YORK NY 10036
Marcos Alvarado officer: Vice President 591 WEST PUTNAM AVENUE, GREENWICH CT 06830
Richard J Lieb director, other: Member of Board of Trustees C/O GREENHILL & CO., INC.,, 300 PARK AVENUE, NEW YORK NY 10022
Clifford Desouza director, other: Member of Board of Trustees C/O ISTAR, 1114 AVENUE OF THE AMERICAS, 39TH FLOOR, NEW YORK NY 10036
Nina Matis director, other: Member of Board of Trustees 1114 AVENUE OF THE AMERICAS, 12TH FL, NEW YORK NY 10036
Jay Sugarman director, officer: President, other: Member of Board of Trustees 24301 WALDEN CENTER DR, BONITA SPRINGS FL 34134
Istar Inc. 10 percent owner 1114 AVENUE OF THE AMERICAS, 39TH FLOOR, NEW YORK NY 10036

Star Holdings (Star Holdings) Headlines

From GuruFocus

Star Holdings Reports First Quarter 2023 Results

By PRNewswire PRNewswire 05-11-2023