Japan Real Estate Investment (TSE:8952) Beneish M-Score : -2.40 (As of May. 05, 2024)

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What is Japan Real Estate 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Japan Real Estate Investment's Beneish M-Score or its related term are showing as below:

TSE:8952' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.39 Max: -2.17
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Japan Real Estate Investment was -2.17. The lowest was -2.77. And the median was -2.39.

Japan Real Estate Investment Beneish M-Score Historical Data

The historical data trend for Japan Real Estate 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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Japan Real Estate Investment Beneish M-Score Chart

Japan Real Estate Investment Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

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-2.69

-2.33

-2.77

-2.29

-2.40

Japan Real Estate Investment Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.77	-	-2.29	-	-2.40

Competitive Comparison of Japan Real Estate Investment's Beneish M-Score

For the REIT - Office subindustry, Japan Real Estate 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.

Japan Real Estate Investment's Beneish M-Score Distribution in the REITs Industry

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

* The bar in red indicates where Japan Real Estate Investment's Beneish M-Score falls into.

Japan Real Estate 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 Japan Real Estate 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 * 1.1866

0.528 * 1.0242

0.404 * 0.9663

0.892 * 1.0252

0.115 * 1.0515

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9971

4.679 * -0.025209

0.327 * 1.0158

-2.40

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was 円567 Mil.
Revenue was 円75,973 Mil.
Gross Profit was 円39,273 Mil.
Total Current Assets was 円37,060 Mil.
Total Assets was 円1,057,292 Mil.
Property, Plant and Equipment(Net PPE) was 円1,011,477 Mil.
Depreciation, Depletion and Amortization(DDA) was 円12,460 Mil.
Selling, General, & Admin. Expense(SGA) was 円3,953 Mil.
Total Current Liabilities was 円105,550 Mil.
Long-Term Debt & Capital Lease Obligation was 円354,893 Mil.
Net Income was 円33,236 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円59,890 Mil.

Total Receivables was 円466 Mil.
Revenue was 円74,108 Mil.
Gross Profit was 円39,236 Mil.
Total Current Assets was 円28,070 Mil.
Total Assets was 円1,008,970 Mil.
Property, Plant and Equipment(Net PPE) was 円972,253 Mil.
Depreciation, Depletion and Amortization(DDA) was 円12,602 Mil.
Selling, General, & Admin. Expense(SGA) was 円3,867 Mil.
Total Current Liabilities was 円79,392 Mil.
Long-Term Debt & Capital Lease Obligation was 円353,193 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)
	=	(567.325 / 75973.12)	/	(466.371 / 74108.19)
	=	0.007467	/	0.006293
	=	1.1866

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)
	=	(39236.412 / 74108.19)	/	(39273.188 / 75973.12)
	=	0.529448	/	0.516935
	=	1.0242

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 - (37059.841 + 1011476.572) / 1057291.795)	/	(1 - (28070.298 + 972253.046) / 1008970.28)
	=	0.008281	/	0.00857
	=	0.9663

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
	=	75973.12	/	74108.19
	=	1.0252

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))
	=	(12602.041 / (12602.041 + 972253.046))	/	(12460.078 / (12460.078 + 1011476.572))
	=	0.012796	/	0.012169
	=	1.0515

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)
	=	(3953.224 / 75973.12)	/	(3867.307 / 74108.19)
	=	0.052035	/	0.052185
	=	0.9971

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)
	=	((354893.175 + 105549.514) / 1057291.795)	/	((353193.175 + 79392.278) / 1008970.28)
	=	0.435493	/	0.42874
	=	1.0158

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
	=	(33236.418 - 0	-	59890.109)	/	1057291.795
	=	-0.025209

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.

Japan Real Estate Investment has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Japan Real Estate Investment Beneish M-Score Related Terms

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Japan Real Estate Investment (TSE:8952) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Japan Real Estate Investment Corp (TSE:8952) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

3-3-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-0005

Website

http://www.j-re.co.jp

Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, most of J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its largest customers in terms of total leased space.

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