Essential Properties Realty Stock Beneish M Score

EPRT Stock  USD 26.66  0.13  0.49%   
This module uses fundamental data of Essential Properties to approximate the value of its Beneish M Score. Essential Properties 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 Essential Properties Piotroski F Score and Essential Properties Altman Z Score analysis.
  
At this time, Essential Properties' Long Term Debt Total is comparatively stable compared to the past year. Long Term Debt To Capitalization is likely to gain to 0.51 in 2024, whereas Long Term Debt is likely to drop slightly above 965.1 M in 2024. At this time, Essential Properties' Company Equity Multiplier is comparatively stable compared to the past year. Long Term Debt To Capitalization is likely to gain to 0.51 in 2024, whereas Operating Cash Flow Per Share is likely to drop 0.98 in 2024.
At this time, Essential Properties' M Score is unavailable. The earnings manipulation may begin if Essential Properties' 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 Essential Properties 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 Essential Properties' 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.
-4.45
Beneish M Score - Unavailable
Elasticity of Receivables

0.99

Focus
Asset Quality

-2.4

Focus
Expense Coverage

1.37

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

1.37

Focus
Depreciation Resistance

1.66

Focus
Net Sales Growth

0.51

Focus
Financial Leverage Condition

1.08

Focus

Essential Properties 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 Essential Properties' 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 Receivables185.7 M364.1 M
Way Down
Slightly volatile
Total Revenue185.1 M359.6 M
Way Down
Slightly volatile
Total Assets2.7 B4.8 B
Way Down
Slightly volatile
Total Current Assets235.1 M420.5 M
Way Down
Slightly volatile
Non Current Assets Total2.4 B4.3 B
Way Down
Slightly volatile
Property Plant Equipment4.5 B4.3 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization63.7 M101.9 M
Way Down
Slightly volatile
Selling General Administrative21.7 M30.7 M
Way Down
Slightly volatile
Total Current Liabilities43.8 M78.4 M
Way Down
Slightly volatile
Non Current Liabilities TotalB1.7 B
Way Down
Slightly volatile
Net Debt982 M1.6 B
Way Down
Slightly volatile
Short Term Debt9.3 M9.8 M
Notably Down
Slightly volatile
Long Term Debt965.1 M1.7 B
Way Down
Slightly volatile
Operating Income254.9 M242.8 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities267.3 M254.6 M
Sufficiently Up
Slightly volatile
Short Term Investments4.9 B4.7 B
Sufficiently Up
Slightly volatile
Long Term Investments63.6 M60.6 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.780.987
Significantly Down
Slightly volatile

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

About Essential Properties 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.

Depreciation And Amortization

63.73 Million

At this time, Essential Properties' Depreciation And Amortization is comparatively stable compared to the past year.

Essential Properties 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 Essential Properties. 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 Receivables118.1M215.5M272.9M341.6M364.1M185.7M
Total Revenue139.4M164.0M230.2M286.5M359.6M185.1M
Total Assets2.0B2.5B3.3B4.0B4.8B2.7B
Total Current Assets156.6M265.5M348.1M417.9M420.5M235.1M
Net Debt718.6M788.7M1.1B1.4B1.6B982.0M
Short Term Debt3.9M4.1M9.4M9.0M9.8M9.3M
Long Term Debt726.9M626.3M1.0B1.4B1.7B965.1M
Operating Income72.6M72.8M134.4M175.4M242.8M254.9M
Investments(664.1M)(601.3M)(977.0M)(843.8M)(810.3M)(850.8M)

About Essential Properties Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Essential Properties Realty's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Essential Properties using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Essential Properties 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.
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company was founded in 2016 and is headquartered in Princeton, New Jersey. Essential Properties operates under REITDiversified classification in the United States and is traded on New York Stock Exchange. It employs 37 people.

Pair Trading with Essential Properties

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Essential Properties position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Essential Properties will appreciate offsetting losses from the drop in the long position's value.

Moving together with Essential Stock

  0.65BDN Brandywine Realty Trust Financial Report 17th of April 2024 PairCorr
The ability to find closely correlated positions to Essential Properties could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essential Properties when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Essential Properties - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Essential Properties Realty to buy it.
The correlation of Essential Properties is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Essential Properties moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essential Properties moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Essential Properties can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Essential Properties is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Essential Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Essential Properties Realty Stock. Highlighted below are key reports to facilitate an investment decision about Essential Properties Realty Stock:
Check out Essential Properties Piotroski F Score and Essential Properties Altman Z Score analysis.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Complementary Tools for Essential Stock analysis

When running Essential Properties' price analysis, check to measure Essential Properties' 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 Essential Properties is operating at the current time. Most of Essential Properties' value examination focuses on studying past and present price action to predict the probability of Essential Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essential Properties' price. Additionally, you may evaluate how the addition of Essential Properties to your portfolios can decrease your overall portfolio volatility.
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Is Essential Properties' 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 Essential Properties. If investors know Essential 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 Essential Properties 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
0.25
Dividend Share
1.12
Earnings Share
1.24
Revenue Per Share
2.364
Quarterly Revenue Growth
0.316
The market value of Essential Properties is measured differently than its book value, which is the value of Essential that is recorded on the company's balance sheet. Investors also form their own opinion of Essential Properties' value that differs from its market value or its book value, called intrinsic value, which is Essential Properties' 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 Essential Properties' market value can be influenced by many factors that don't directly affect Essential Properties' 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 Essential Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Essential Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essential Properties' 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.