Kkr Real Estate Stock Beneish M Score

KREF Stock  USD 11.63  0.06  0.51%   
This module uses fundamental data of KKR Real to approximate the value of its Beneish M Score. KKR Real 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 KKR Real Piotroski F Score and KKR Real Altman Z Score analysis.
  
At this time, KKR Real's Debt To Equity is most likely to slightly grow in the upcoming years. The KKR Real's current Interest Debt Per Share is estimated to increase to 98.94, while Net Debt is projected to decrease to roughly 3.5 B. At this time, KKR Real's Free Cash Flow Yield is most likely to increase slightly in the upcoming years. The KKR Real's current Operating Cash Flow Per Share is estimated to increase to 2.36, while PTB Ratio is projected to decrease to 0.62.
At this time, it appears that KKR Real Estate is a possible manipulator. The earnings manipulation may begin if KKR Real'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 KKR Real 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 KKR Real'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.
-2.07
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.82

Focus
Asset Quality

1.01

Focus
Expense Coverage

0.97

Focus
Gross Margin Strengs

1.09

Focus
Accruals Factor

0.97

Focus
Depreciation Resistance

0.93

Focus
Net Sales Growth

0.58

Focus
Financial Leverage Condition

0.73

Focus

KKR Real 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 KKR Real'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
Net Receivables43.1 M41 M
Sufficiently Up
Slightly volatile
Total Revenue104.9 M181.6 M
Way Down
Slightly volatile
Total Assets6.1 B7.5 B
Significantly Down
Slightly volatile
Total Current Assets141.6 M176.9 M
Significantly Down
Slightly volatile
Non Current Assets Total33.3 M35.1 M
Notably Down
Very volatile
Property Plant Equipment87.3 M92.3 M
Notably Down
Slightly volatile
Selling General Administrative10.5 M18.8 M
Way Down
Slightly volatile
Total Current Liabilities55.4 M58.3 M
Notably Down
Very volatile
Non Current Liabilities Total6.4 B6.1 B
Sufficiently Up
Slightly volatile
Net Debt3.5 B5.9 B
Way Down
Slightly volatile
Short Term Debt1.7 B1.8 B
Notably Down
Slightly volatile
Long Term Debt6.4 B6.1 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities87.6 M155.7 M
Way Down
Slightly volatile
Short Term Investments5.5 M5.8 M
Notably Down
Slightly volatile
Long Term Investments34.8 M35.1 M
Slightly Down
Slightly volatile
Gross Profit Margin1.020.9384
Significantly Up
Pretty Stable

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

About KKR Real 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

32.09 Million

At this time, KKR Real's Depreciation And Amortization is most likely to increase significantly in the upcoming years.

KKR Real 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 KKR Real. 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 Receivables16.3M15.4M15.2M39.0M41.0M43.1M
Total Revenue99.8M125.6M151.9M174.7M181.6M104.9M
Total Assets5.1B5.0B6.7B7.8B7.5B6.1B
Total Current Assets83.9M126.2M286.7M278.8M176.9M141.6M
Net Debt3.8B3.8B5.0B5.9B5.9B3.5B
Short Term Debt139.1M140.5M141.9M143.2M1.8B1.7B
Long Term Debt3.9B428.5M5.3B480.1M6.1B6.4B
Operating Income90.5M54.8M137.9M274.8M(52.1M)(49.5M)
Investments(926.3M)88.7M(1.5B)(1.2B)(269.5M)(283.0M)
Gross Profit Margin1.211.160.80.810.941.02

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

About KKR Real Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze KKR Real Estate's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of KKR Real using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of KKR Real Estate 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.

Currently Active Assets on Macroaxis

When determining whether KKR Real Estate is a strong investment it is important to analyze KKR Real's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact KKR Real's future performance. For an informed investment choice regarding KKR Stock, refer to the following important reports:
Check out KKR Real Piotroski F Score and KKR Real Altman Z Score analysis.
You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Is Mortgage Real Estate Investment Trusts (REITs) space 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 KKR Real. If investors know KKR 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 KKR Real 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
(0.64)
Dividend Share
1.18
Earnings Share
(0.29)
Revenue Per Share
0.959
Quarterly Revenue Growth
(0.79)
The market value of KKR Real Estate is measured differently than its book value, which is the value of KKR that is recorded on the company's balance sheet. Investors also form their own opinion of KKR Real's value that differs from its market value or its book value, called intrinsic value, which is KKR Real'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 KKR Real's market value can be influenced by many factors that don't directly affect KKR Real'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 KKR Real's value and its price as these two are different measures arrived at by different means. Investors typically determine if KKR Real is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KKR Real'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.