SL Green Beneish M Score

SLG
 Stock
  

USD 41.96  1.35  3.32%   

This module uses fundamental data of SL Green to approximate the value of its Beneish M Score. SL Green 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, take a look at SL Green Piotroski F Score and SL Green Altman Z Score analysis.
  
SL Green Debt to Equity Ratio is projected to slightly decrease based on the last few years of reporting. The past year's Debt to Equity Ratio was at 0.83. SL Green Receivables Turnover is projected to slightly decrease based on the last few years of reporting. The past year's Receivables Turnover was at 2.62. The current year Accounts Payable Turnover is expected to grow to 7.82, whereas Total Assets Per Share are forecasted to decline to 162.96.
At this time, it appears that SL Green Realty is an unlikely manipulator. The earnings manipulation may begin if SL Green'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 SL Green 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 SL Green'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.
-2.94
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.74Focus
Asset Quality-0.62Focus
Expense Coverage0.58Focus
Gross Margin Strengs0.96Focus
Accruals Factor0.58Focus
Depreciation Resistance0.79Focus
Net Sales Growth1.45Focus
Financial Leverage Condition0.84Focus

SL Green 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 SL Green'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
Selling General and Administrative Expense75.2 M89.8 M
Fairly Down
Increasing
Slightly volatile
Revenues1.2 B844 M
Way Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables497 M460.6 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net7.8 B9.4 B
Significantly Down
Increasing
Stable
Operating Income183.7 M179 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations317.3 M256 M
Fairly Up
Increasing
Very volatile
Current Liabilities369.8 M409.9 M
Moderately Down
Increasing
Stable
Total Liabilities7.8 B6.1 B
Significantly Up
Decreasing
Stable
Investments3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Gross Margin59.5962.0863
Sufficiently Down
Increasing
Very volatile
Depreciation Amortization and Accretion821.1 M761 M
Significantly Up
Increasing
Slightly volatile
Total DebtB5.9 B
Fairly Down
Increasing
Stable
Current Assets821.1 M697.1 M
Fairly Up
Decreasing
Very volatile
Total Assets14 B11.1 B
Significantly Up
Decreasing
Stable

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

About SL Green 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

901.46 Million

SL Green Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 835.5 Million

SL Green 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 SL Green. 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)
Revenues1.51 B1.23 B1.24 B1.05 B843.99 M1.22 B
Total Assets13.98 B12.75 B12.77 B11.71 B11.07 B13.99 B
Current Assets724.62 M713.36 M619.42 M783.32 M697.07 M821.05 M
Total Liabilities7.46 B6.55 B7.04 B6.6 B6.11 B7.78 B
Current Liabilities328.35 M315.33 M330.59 M369.26 M409.95 M369.8 M
Operating Income438.57 M398.65 M406.4 M222.89 M178.96 M183.67 M
Net Cash Flow from Operations548.37 M441.54 M376.47 M554.24 M255.98 M317.25 M
Gross Margin62.2363.4565.6665.8562.0959.59

SL Green 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, SL Green's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to SL Green's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About SL Green Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze SL Green Realty's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SL Green using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SL Green Realty 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.
SL Green Realty Corp., an SP 500 company and Manhattans largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments. SL Green operates under REITOffice classification in the United States and is traded on New York Stock Exchange. It employs 931 people.

SL Green Investors Sentiment

The influence of SL Green'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 SL Green. 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.
Investor biases related to SL Green's public news can be used to forecast risks associated with investment in SL Green. The trend in average sentiment can be used to explain how an investor holding SL Green can time the market purely based on public headlines and social activities around SL Green Realty. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
SL Green's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for SL Green's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average SL Green's news discussions. The higher the estimated score, the more favorable is the investor's outlook on SL Green.
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 SL Green 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, SL Green's short interest history, or implied volatility extrapolated from SL Green options trading.

Currently Active Assets on Macroaxis

Additionally, take a look at SL Green Piotroski F Score and SL Green Altman Z Score analysis. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for analysis

When running SL Green Realty price analysis, check to measure SL Green'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 SL Green is operating at the current time. Most of SL Green's value examination focuses on studying past and present price action to predict the probability of SL Green's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move SL Green's price. Additionally, you may evaluate how the addition of SL Green to your portfolios can decrease your overall portfolio volatility.
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Is SL Green'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 SL Green. If investors know SL Green 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 SL Green listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.98) 
Market Capitalization
2.6 B
Quarterly Revenue Growth YOY
0.004
Return On Assets
0.007
Return On Equity
(0.0111) 
The market value of SL Green Realty is measured differently than its book value, which is the value of SL Green that is recorded on the company's balance sheet. Investors also form their own opinion of SL Green's value that differs from its market value or its book value, called intrinsic value, which is SL Green'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 SL Green's market value can be influenced by many factors that don't directly affect SL Green'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 SL Green's value and its price as these two are different measures arrived at by different means. Investors typically determine SL Green value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SL Green'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.