Life Storage Beneish M Score

LSI
 Stock
  

USD 115.46  3.80  3.40%   

This module uses fundamental data of Life Storage to approximate the value of its Beneish M Score. Life Storage 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. Additionally, see Life Storage Piotroski F Score and Life Storage Altman Z Score analysis.
  
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Life Storage Issuance Repayment of Debt Securities is most likely to in the upcoming years. The last year's value of Issuance Repayment of Debt Securities was reported at 588.89 Million. Life Storage Accrued Expenses Turnover is most likely to increase slightly in the upcoming years. The last year's value of Accrued Expenses Turnover was reported at 16.78. The current Cash and Equivalents Turnover is estimated to increase to 7.15, while Interest Coverage is projected to decrease to 3.22.
At this time, it appears that Life Storage is an unlikely manipulator. The earnings manipulation may begin if Life Storage'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 Life Storage 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 Life Storage'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.
-3.37
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset Quality-0.69Focus
Expense Coverage1.07Focus
Gross Margin Strengs1.09Focus
Accruals Factor1.07Focus
Depreciation Resistance0.94Focus
Net Sales Growth0.85Focus
Financial Leverage Condition1.01Focus

Life Storage 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 Life Storage'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
Revenues674.2 M788.6 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense57.4 M62.6 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations353.6 M433.9 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion127.9 M147.1 M
Fairly Down
Increasing
Slightly volatile
Total Assets5.3 B6.6 B
Significantly Down
Increasing
Slightly volatile
Investments168.7 M213 M
Significantly Down
Increasing
Slightly volatile
Investments Current378.9 M307.1 M
Fairly Up
Increasing
Very volatile
Property Plant and Equipment NetB6.1 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables14.8 M18.1 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities2.4 B2.9 B
Significantly Down
Increasing
Slightly volatile
Current Assets215.7 M199.9 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current1.4 B1.2 B
Fairly Up
Decreasing
Stable
Current Liabilities171.6 M159.1 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current863.2 M819.1 M
Notably Up
Increasing
Slightly volatile
Total Debt2.3 B2.8 B
Significantly Down
Increasing
Slightly volatile
Debt Current339.9 M315 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current541.4 M402.5 M
Significantly Up
Decreasing
Stable
Operating Income279.2 M332.4 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.750.688
Significantly Up
Increasing
Slightly volatile

Life Storage 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 Life Storage's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Life Storage in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Life Storage's degree of accounting gimmicks and manipulations.

About Life Storage 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.

Operating Expenses

179.47 Million

Share
Life Storage Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 209.74 Million

Life Storage 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 Life Storage. 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.
201720182019202020212022 (projected)
Revenues529.75 M550.85 M574.74 M616.77 M788.57 M674.21 M
Total Assets3.88 B3.89 B4.23 B4.73 B6.56 B5.32 B
Current Assets24.86 M29.62 M38.75 M79.25 M199.9 M215.68 M
Total Liabilities1.83 B1.81 B2.07 B2.32 B2.94 B2.42 B
Current Liabilities102.31 M96.64 M115.64 M130.07 M159.06 M171.61 M
Total Debt1.73 B1.71 B1.96 B2.19 B2.78 B2.29 B
Operating Income167.85 M273.38 M329.82 M233.22 M332.44 M279.22 M
Investments133.46 M145.91 M154.98 M143.04 M213 M168.67 M

About Life Storage Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Life Storage's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Life Storage using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Life Storage 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.
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Life Storage consistently provides responsive service to approximately 500,000 customers, making it a leader in the industry. Life Storage operates under REITIndustrial classification in the United States and is traded on New York Stock Exchange. It employs 2241 people.

Life Storage Investors Sentiment

The influence of Life Storage's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Life Storage. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Life Storage in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Life Storage's short interest history, or implied volatility extrapolated from Life Storage options trading.

Current Sentiment - LSI

Life Storage Investor Sentiment

Greater number of Macroaxis users are now bullish on Life Storage. What is your trading attitude regarding investing in Life Storage? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Additionally, see Life Storage Piotroski F Score and Life Storage Altman Z Score analysis. Note that the Life Storage information on this page should be used as a complementary analysis to other Life Storage's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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Is Life Storage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Life Storage. If investors know Life Storage will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Life Storage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Life Storage is measured differently than its book value, which is the value of Life Storage that is recorded on the company's balance sheet. Investors also form their own opinion of Life Storage's value that differs from its market value or its book value, called intrinsic value, which is Life Storage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Life Storage's market value can be influenced by many factors that don't directly affect Life Storage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Life Storage's value and its price as these two are different measures arrived at by different means. Investors typically determine Life Storage value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Life Storage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.