Piedmont Office Realty Stock Beneish M Score

PDM Stock  USD 9.52  0.16  1.65%   
This module uses fundamental data of Piedmont Office to approximate the value of its Beneish M Score. Piedmont Office 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 Piedmont Office Piotroski F Score and Piedmont Office Altman Z Score analysis.
  
At this time, Piedmont Office's Debt Ratio is very stable compared to the past year. At this time, Piedmont Office's Interest Coverage is very stable compared to the past year. As of the 30th of November 2024, PFCF Ratio is likely to grow to 19.10, while Dividend Yield is likely to drop 0.07.
At this time, it appears that Piedmont Office Realty is a possible manipulator. The earnings manipulation may begin if Piedmont Office'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 Piedmont Office 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 Piedmont Office'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.
-2.19
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.9

Focus
Asset Quality

1.76

Focus
Expense Coverage

1.01

Focus
Gross Margin Strengs

1.17

Focus
Accruals Factor

1.01

Focus
Depreciation Resistance

0.66

Focus
Net Sales Growth

1.03

Focus
Financial Leverage Condition

0.72

Focus

Piedmont Office 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 Piedmont Office'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 Receivables177.4 M191.8 M
Significantly Down
Slightly volatile
Total Revenue592.7 M577.8 M
Fairly Up
Slightly volatile
Total Assets4.5 B4.1 B
Moderately Up
Pretty Stable
Total Current Assets186.2 M196 M
Notably Down
Slightly volatile
Non Current Assets Total3.9 B3.8 B
Slightly Up
Pretty Stable
Property Plant Equipment2.7 BB
Moderately Down
Slightly volatile
Depreciation And Amortization216.3 M153.8 M
Significantly Up
Slightly volatile
Selling General Administrative30.1 M29.2 M
Sufficiently Up
Slightly volatile
Total Current Liabilities85.4 M89.9 M
Notably Down
Slightly volatile
Non Current Liabilities Total1.5 B2.2 B
Way Down
Slightly volatile
Net Debt1.6 B2.1 B
Significantly Down
Slightly volatile
Short Term Debt439.8 M368.3 M
Fairly Up
Very volatile
Long Term Debt1.7 B2.1 B
Significantly Down
Slightly volatile
Operating Income102.6 M77.3 M
Significantly Up
Slightly volatile
Total Cash From Operating Activities191.5 M210.1 M
Significantly Down
Very volatile
Short Term Investments2.7 MM
Fairly Down
Slightly volatile
Long Term Investments3.6 M3.8 M
Notably Down
Slightly volatile
Gross Profit Margin0.690.5897
Fairly Up
Pretty Stable

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

About Piedmont Office 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.

Other Operating Expenses

447.27 Million

At this time, Piedmont Office's Other Operating Expenses is very stable compared to the past year.

Piedmont Office 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 Piedmont Office. 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 Receivables159.3M278.1M284.1M176.8M191.8M177.4M
Total Revenue533.2M535.0M528.7M563.8M577.8M592.7M
Total Assets3.5B3.7B3.9B4.1B4.1B4.5B
Total Current Assets174.7M287.3M301.4M213.5M196.0M186.2M
Net Debt1.5B1.6B1.9B2.0B2.1B1.6B
Short Term Debt205M985K327.6M290M368.3M439.8M
Long Term Debt1.5B1.6B1.9B2.0B2.1B1.7B
Operating Income92.3M91.3M91.1M86.7M77.3M102.6M
Investments134.4M(197.9M)(368.9M)118.5M(17.9M)(17.0M)

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

About Piedmont Office Fundamental Analysis

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

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When determining whether Piedmont Office Realty is a strong investment it is important to analyze Piedmont Office'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 Piedmont Office's future performance. For an informed investment choice regarding Piedmont Stock, refer to the following important reports:
Check out Piedmont Office Piotroski F Score and Piedmont Office Altman Z Score analysis.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Diversified 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 Piedmont Office. If investors know Piedmont 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 Piedmont Office 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
(0.70)
Dividend Share
0.5
Earnings Share
(0.63)
Revenue Per Share
4.621
Quarterly Revenue Growth
(0.05)
The market value of Piedmont Office Realty is measured differently than its book value, which is the value of Piedmont that is recorded on the company's balance sheet. Investors also form their own opinion of Piedmont Office's value that differs from its market value or its book value, called intrinsic value, which is Piedmont Office'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 Piedmont Office's market value can be influenced by many factors that don't directly affect Piedmont Office'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 Piedmont Office's value and its price as these two are different measures arrived at by different means. Investors typically determine if Piedmont Office is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Piedmont Office'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.