W P Beneish M Score

WPC
 Stock
  

USD 78.80  0.58  0.74%   

This module uses fundamental data of W P to approximate the value of its Beneish M Score. W P 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 W P Piotroski F Score and W P Altman Z Score analysis.
  
The current year Total Debt is expected to grow to about 4.4 B. The current year Issuance Repayment of Debt Securities is expected to grow to about 550.4 M. W P Interest Coverage is projected to slightly decrease based on the last few years of reporting. The past year's Interest Coverage was at 3.07. The current year Long Term Debt to Equity is expected to grow to 0.90, whereas Operating Margin is forecasted to decline to 38.68.
At this time, it appears that W P Carey is an unlikely manipulator. The earnings manipulation may begin if W P'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 W P 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 W P'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.
-2.64
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.89Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.94Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

W P 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 W P'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 Expense121.2 M112.3 M
Significantly Up
Increasing
Slightly volatile
Revenues1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables68.4 M71.6 M
Sufficiently Down
Increasing
Slightly volatile
Property Plant and Equipment Net5.6 B5.2 B
Significantly Up
Increasing
Slightly volatile
Operating Income652.6 M604.9 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations999.6 M926.5 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities838 M776.7 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities8.5 B7.9 B
Significantly Up
Increasing
Slightly volatile
Investments5.9 B5.5 B
Significantly Up
Increasing
Slightly volatile
Gross Margin90.8396.4028
Notably Down
Increasing
Stable
Depreciation Amortization and Accretion279.5 M259.1 M
Significantly Up
Increasing
Slightly volatile
Total Debt4.4 BB
Significantly Up
Increasing
Slightly volatile
Current Assets180.8 M167.3 M
Significantly Up
Increasing
Slightly volatile
Total Assets16.7 B15.5 B
Significantly Up
Increasing
Slightly volatile

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

About W P 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

414.89 Million

W P Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 384.53 Million

W P 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 W P. 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)
Revenues848.3 M885.73 M1.23 B1.21 B1.33 B1.44 B
Total Assets8.23 B14.18 B14.06 B14.71 B15.48 B16.7 B
Current Assets267.62 M292.49 M253.84 M274.92 M167.25 M180.81 M
Total Liabilities5.04 B7.36 B7.12 B7.83 B7.9 B8.52 B
Current Liabilities372.82 M576.05 M668.75 M790.18 M776.71 M838.02 M
Operating Income358.55 M359.28 M501.65 M517.72 M604.87 M652.62 M
Net Cash Flow from Operations516.07 M509.17 M812.08 M801.54 M926.48 M999.62 M
Gross Margin95.297.4396.7996.3696.490.83

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

About W P Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze W P Carey's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of W P using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of W P Carey 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.
Carey ranks among the largest net lease REITs with an enterprise value of approximately 18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry. WP Carey operates under REITDiversified classification in the United States and is traded on New York Stock Exchange. It employs 183 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in W P without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Is W P'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 W P. If investors know W P 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 W P 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
(0.31) 
Market Capitalization
16.3 B
Quarterly Revenue Growth YOY
0.17
Return On Assets
0.028
Return On Equity
6.04
The market value of W P Carey is measured differently than its book value, which is the value of W P that is recorded on the company's balance sheet. Investors also form their own opinion of W P's value that differs from its market value or its book value, called intrinsic value, which is W P'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 W P's market value can be influenced by many factors that don't directly affect W P'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 W P's value and its price as these two are different measures arrived at by different means. Investors typically determine W P value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, W P'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.