Gladstone Beneish M Score

LAND Stock  USD 19.44  0.10  0.51%   
This module uses fundamental data of Gladstone Land to approximate the value of its Beneish M Score. Gladstone Land 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 Gladstone Land Piotroski F Score and Gladstone Land Altman Z Score analysis.
  
The current year Total Debt is expected to grow to about 828.8 M. The current year Issuance Repayment of Debt Securities is expected to grow to about 60.9 M. Gladstone Land Calculated Tax Rate is projected to increase significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 463.57. The current year Operating Margin is expected to grow to 50.35, whereas Accounts Payable Turnover is forecasted to decline to 5.83.
At this time, it appears that Gladstone Land is an unlikely manipulator. The earnings manipulation may begin if Gladstone Land'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 Gladstone Land 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 Gladstone Land'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.
-3.28
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality1.0Focus
Expense Coverage0.77Focus
Gross Margin Strengs1.03Focus
Accruals Factor0.77Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Gladstone Land 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 Gladstone Land'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 Expense3.5 M4.2 M
Fairly Down
Up
Slightly volatile
Revenues73.1 M67.8 M
Significantly Up
Up
Slightly volatile
Property Plant and Equipment Net1.6 B1.5 B
Significantly Up
Up
Slightly volatile
Operating Income30.8 M28.5 M
Significantly Up
Up
Slightly volatile
Net Cash Flow from Operations31.4 M29.1 M
Significantly Up
Up
Slightly volatile
Current Liabilities14.7 M13.6 M
Significantly Up
Up
Slightly volatile
Total Liabilities742.6 M688.3 M
Significantly Up
Up
Slightly volatile
Investments805.6 K782.5 K
Fairly Up
Up
Slightly volatile
Gross Margin114111
Fairly Up
Up
Slightly volatile
Depreciation Amortization and Accretion33.9 M31.4 M
Significantly Up
Up
Slightly volatile
Total Debt828.8 M768.2 M
Significantly Up
Up
Slightly volatile
Current Assets16.2 M15 M
Significantly Up
Up
Slightly volatile
Total Assets1.3 B1.2 B
Significantly Up
Up
Slightly volatile

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

About Gladstone Land 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 Amortization and Accretion

33.88 Million

Gladstone Land Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 31.4 Million

Gladstone Land 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 Gladstone Land. 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.
201820192020202120222023 (projected)
Revenues36.69 M40.69 M57.03 M75.32 M67.79 M73.14 M
Total Assets565.12 M816.79 M1.07 B1.35 B1.22 B1.31 B
Current Assets14.73 M13.69 M9.22 M16.71 M15.04 M16.22 M
Property Plant and Equipment Net538.95 M792.08 M1.05 B1.28 B1.48 B1.59 B
Depreciation Amortization and Accretion9.38 M12.79 M16.7 M27.3 M31.4 M33.88 M
Selling General and Administrative Expense3.03 M3.2 M3.55 M3.67 M4.21 M3.51 M
Total Liabilities388.87 M540.17 M683.5 M764.74 M688.26 M742.6 M
Current Liabilities10.1 M12.3 M11.56 M15.1 M13.59 M14.66 M
Total Debt335.89 M481.93 M624.06 M667.98 M768.18 M828.83 M
Operating Income12.11 M19.31 M27.65 M31.7 M28.53 M30.79 M
Net Cash Flow from Operations10.41 M21.37 M25 M32.38 M29.14 M31.44 M
Gross Margin94.4393.9296.7696.63111.13113.93

About Gladstone Land Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Gladstone Land's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Gladstone Land using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Gladstone Land 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.
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company has increased its common distributions 20 times over the prior 23 quarters, and the current per-share distribution on its common stock is 0.0449 per month, or 0.5388 per year. Gladstone Land operates under REITSpecialty classification in the United States and is traded on NASDAQ Exchange.

Gladstone Land Investors Sentiment

The influence of Gladstone Land'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 Gladstone. 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 Gladstone Land's public news can be used to forecast risks associated with investment in Gladstone. The trend in average sentiment can be used to explain how an investor holding Gladstone can time the market purely based on public headlines and social activities around Gladstone Land. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Gladstone Land'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 Gladstone Land'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 Gladstone Land's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Gladstone Land.
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 Gladstone Land 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, Gladstone Land's short interest history, or implied volatility extrapolated from Gladstone Land options trading.

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Additionally, see Gladstone Land Piotroski F Score and Gladstone Land Altman Z Score analysis. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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Is Gladstone Land'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 Gladstone Land. If investors know Gladstone 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 Gladstone Land listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
692.6 M
Quarterly Revenue Growth
0.236
Return On Assets
0.0162
Return On Equity
0.0091
The market value of Gladstone Land is measured differently than its book value, which is the value of Gladstone that is recorded on the company's balance sheet. Investors also form their own opinion of Gladstone Land's value that differs from its market value or its book value, called intrinsic value, which is Gladstone Land'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 Gladstone Land's market value can be influenced by many factors that don't directly affect Gladstone Land'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 Gladstone Land's value and its price as these two are different measures arrived at by different means. Investors typically determine Gladstone Land value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gladstone Land'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.