Federal Realty Investment Stock Beneish M Score

FRT Stock  USD 114.86  0.46  0.40%   
This module uses fundamental data of Federal Realty to approximate the value of its Beneish M Score. Federal Realty M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Federal Realty Piotroski F Score and Federal Realty Altman Z Score analysis.
  
At this time, Federal Realty's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 4.7 B in 2024, whereas Net Debt To EBITDA is likely to drop 3.65 in 2024. At this time, Federal Realty's PFCF Ratio is comparatively stable compared to the past year. Income Quality is likely to gain to 2.30 in 2024, whereas Days Sales Outstanding is likely to drop 40.25 in 2024.
At this time, it appears that Federal Realty Investment is an unlikely manipulator. The earnings manipulation may begin if Federal Realty's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Federal Realty executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Federal Realty's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-6.27
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-8.41

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.13

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.6

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.93

Focus

Federal Realty Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Federal Realty's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables221.5 M210.9 M
Sufficiently Up
Slightly volatile
Total Revenue1.2 B1.1 B
Sufficiently Up
Slightly volatile
Total Assets8.9 B8.4 B
Sufficiently Up
Slightly volatile
Total Current Assets746.4 M710.8 M
Sufficiently Up
Slightly volatile
Non Current Assets Total8.1 B7.7 B
Sufficiently Up
Slightly volatile
Selling General Administrative53.2 M50.7 M
Sufficiently Up
Slightly volatile
Total Current Liabilities369.1 M690.5 M
Way Down
Slightly volatile
Non Current Liabilities Total4.7 B4.5 B
Sufficiently Up
Slightly volatile
Net Debt4.7 B4.4 B
Sufficiently Up
Slightly volatile
Short Term Debt641 M610.5 M
Sufficiently Up
Slightly volatile
Long Term Debt4.8 B4.6 B
Sufficiently Up
Slightly volatile
Operating Income426.8 M406.5 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities583.6 M555.8 M
Sufficiently Up
Slightly volatile
Long Term Investments57.5 M34.9 M
Way Up
Slightly volatile
Gross Profit Margin0.770.6793
Moderately Up
Pretty Stable

Federal Realty Investment Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Federal Realty's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Federal Realty in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Federal Realty's degree of accounting gimmicks and manipulations.

About Federal Realty Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

772.34 Million

At this time, Federal Realty's Other Operating Expenses is comparatively stable compared to the past year.

Federal Realty Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Federal Realty. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables183.0M199.7M178.6M207.1M210.9M221.5M
Total Revenue935.8M835.5M951.2M1.1B1.1B1.2B
Total Assets6.8B7.6B7.6B8.2B8.4B8.9B
Total Current Assets537.5M1.2B577.8M292.7M710.8M746.4M
Net Debt3.4B3.6B4.0B4.4B4.4B4.7B
Short Term Debt149.5M547.3M446.2M746.5M610.5M641.0M
Long Term Debt3.4B4.3B340.0M320.6M4.6B4.8B
Operating Income353.8M289.5M306.8M368.8M406.5M426.8M
Investments1.7M(2.0M)(145K)117.4M(404.5M)(384.3M)

Federal Realty ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Federal Realty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Federal Realty's managers, analysts, and investors.
Environmental
Governance
Social

About Federal Realty Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Federal Realty Investment's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Federal Realty using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Federal Realty Investment based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Additional Tools for Federal Stock Analysis

When running Federal Realty's price analysis, check to measure Federal Realty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Federal Realty is operating at the current time. Most of Federal Realty's value examination focuses on studying past and present price action to predict the probability of Federal Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Federal Realty's price. Additionally, you may evaluate how the addition of Federal Realty to your portfolios can decrease your overall portfolio volatility.