Office Properties Income Stock Beneish M Score

OPINL Stock  USD 9.75  0.01  0.10%   
This module uses fundamental data of Office Properties to approximate the value of its Beneish M Score. Office 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 Office Properties Piotroski F Score and Office Properties Altman Z Score analysis.
  
At this time, Office Properties' Debt To Equity is quite stable compared to the past year. Debt Equity Ratio is expected to rise to 2.32 this year, although the value of Short and Long Term Debt Total will most likely fall to about 1.7 B. At this time, Office Properties' Inventory Turnover is quite stable compared to the past year. Average Inventory is expected to rise to about 119.8 M this year, although the value of Dividend Yield will most likely fall to 0.04.
At this time, it appears that Office Properties Income is a possible manipulator. The earnings manipulation may begin if Office 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 Office 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 Office 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.
-1.66
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.46

Focus
Asset Quality

2.35

Focus
Expense Coverage

2.44

Focus
Gross Margin Strengs

1.08

Focus
Accruals Factor

2.44

Focus
Depreciation Resistance

0.97

Focus
Net Sales Growth

0.72

Focus
Financial Leverage Condition

0.98

Focus

Office 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 Office 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 Receivables163.5 M155.7 M
Sufficiently Up
Slightly volatile
Total Revenue361.2 M502 M
Way Down
Slightly volatile
Total Assets2.9 B3.8 B
Way Down
Slightly volatile
Total Current Assets437.8 M417 M
Sufficiently Up
Slightly volatile
Non Current Assets Total2.7 B3.4 B
Significantly Down
Slightly volatile
Property Plant Equipment3.3 B3.9 B
Fairly Down
Slightly volatile
Depreciation And Amortization169.6 M194.7 M
Fairly Down
Slightly volatile
Selling General Administrative37.1 M21.1 M
Way Up
Slightly volatile
Total Current Liabilities472.8 M450.3 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.9 B2.2 B
Fairly Down
Slightly volatile
Net Debt1.5 B2.3 B
Way Down
Slightly volatile
Short Term Debt213.8 M325 M
Way Down
Pretty Stable
Long Term Debt2.6 B2.6 B
Slightly Down
Slightly volatile
Operating Income320 M304.7 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities134.1 M67.2 M
Way Up
Slightly volatile
Investments43.6 K45.9 K
Notably Down
Pretty Stable
Short Term Investments38.5 M40.4 M
Sufficiently Down
Slightly volatile
Gross Profit Margin0.950.8758
Significantly Up
Very volatile

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

About Office 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

169.62 Million

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

Office 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 Office 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.
202020212022202320242025 (projected)
Net Receivables101.8M112.9M105.6M133.3M155.7M163.5M
Total Revenue587.9M576.5M554.3M533.6M502.0M361.2M
Total Assets3.9B4.2B4.0B4.0B3.8B2.9B
Total Current Assets233.8M224.0M120.4M197.3M417.0M437.8M
Net Debt2.2B2.5B2.4B2.6B2.3B1.5B
Short Term Debt1.5M325.5M245M205M325M213.8M
Long Term Debt2.3B2.2B2.6B2.2B2.6B2.6B
Operating Income112.7M105.1M111.6M334.1M304.7M320.0M
Investments113.6M3.8M623K51K45.9K43.6K

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

About Office Properties Fundamental Analysis

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

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Office Properties Income is a strong investment it is important to analyze Office Properties' 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 Office Properties' future performance. For an informed investment choice regarding Office Stock, refer to the following important reports:
Check out Office Properties Piotroski F Score and Office Properties Altman Z Score analysis.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Office 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 Office Properties. If investors know Office 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 Office 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
(0.68)
Dividend Share
0.04
Revenue Per Share
9.69
Quarterly Revenue Growth
(0.12)
Return On Assets
0.0142
The market value of Office Properties Income is measured differently than its book value, which is the value of Office that is recorded on the company's balance sheet. Investors also form their own opinion of Office Properties' value that differs from its market value or its book value, called intrinsic value, which is Office 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 Office Properties' market value can be influenced by many factors that don't directly affect Office 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 Office Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Office Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Office 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.