51talk Online Education Stock Beneish M Score

COE Stock  USD 15.28  0.36  2.41%   
This module uses fundamental data of 51Talk Online to approximate the value of its Beneish M Score. 51Talk Online 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 51Talk Online Piotroski F Score and 51Talk Online Altman Z Score analysis.
  
At present, 51Talk Online's Interest Debt Per Share is projected to slightly grow based on the last few years of reporting. At present, 51Talk Online's Free Cash Flow Yield is projected to slightly decrease based on the last few years of reporting. The current year's Stock Based Compensation To Revenue is expected to grow to 0.04, whereas PTB Ratio is projected to grow to (5.20).
At this time, it appears that 51Talk Online Education is an unlikely manipulator. The earnings manipulation may begin if 51Talk Online'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 51Talk Online 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 51Talk Online'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.
-5.26
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.9

Focus
Asset Quality

0.84

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.7

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.83

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.88

Focus

51Talk Online 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 51Talk Online'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 Receivables451.1 K530 K
Fairly Down
Slightly volatile
Total Revenue25.8 M27.1 M
Notably Down
Slightly volatile
Total Assets29.6 M31.2 M
Notably Down
Slightly volatile
Total Current Assets28.3 M29.8 M
Notably Down
Slightly volatile
Non Current Assets Total1.3 M1.4 M
Notably Down
Slightly volatile
Property Plant Equipment49.1 M62 M
Significantly Down
Slightly volatile
Depreciation And Amortization94 K99 K
Notably Down
Pretty Stable
Selling General Administrative7.3 M7.7 M
Notably Down
Slightly volatile
Total Current Liabilities37.2 M39.1 M
Notably Down
Slightly volatile
Non Current Liabilities Total206.2 K217 K
Notably Down
Pretty Stable
Short Term InvestmentsM2.1 M
Notably Down
Slightly volatile
Gross Profit Margin0.540.7668
Way Down
Slightly volatile

51Talk Online Education 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 51Talk Online's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards 51Talk Online in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find 51Talk Online's degree of accounting gimmicks and manipulations.

About 51Talk Online 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

38.74 Million

At present, 51Talk Online's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

51Talk Online 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 51Talk Online. 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 Receivables531.8K1.6M51.9K138K530K451.1K
Total Revenue212.0M314.4M339.9M15.0M27.1M25.8M
Total Assets200.3M338.2M187.3M27.6M31.2M29.6M
Total Current Assets170.1M247.6M151.4M26.6M29.8M28.3M
Net Debt(38.8M)(35.2M)(27.6M)(17.5M)(20.7M)(21.7M)
Short Term Debt6.9M6.6M815K427K590K560.5K
Operating Income(14.7M)16.0M11.2M(12.4M)(13.7M)(14.3M)
Investments(412.9M)(705.3M)633.9M2.5M2.4M2.6M
Gross Profit Margin0.70.720.740.790.770.54

51Talk Online 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, 51Talk Online's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to 51Talk Online's managers, analysts, and investors.
Environmental
Governance
Social

About 51Talk Online Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze 51Talk Online Education's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of 51Talk Online using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of 51Talk Online Education 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.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether 51Talk Online Education is a strong investment it is important to analyze 51Talk Online'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 51Talk Online's future performance. For an informed investment choice regarding 51Talk Stock, refer to the following important reports:
Check out 51Talk Online Piotroski F Score and 51Talk Online Altman Z Score analysis.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Diversified Consumer Services 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 51Talk Online. If investors know 51Talk 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 51Talk Online 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
1.16
Earnings Share
(1.80)
Revenue Per Share
6.462
Quarterly Revenue Growth
0.751
Return On Assets
(0.30)
The market value of 51Talk Online Education is measured differently than its book value, which is the value of 51Talk that is recorded on the company's balance sheet. Investors also form their own opinion of 51Talk Online's value that differs from its market value or its book value, called intrinsic value, which is 51Talk Online'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 51Talk Online's market value can be influenced by many factors that don't directly affect 51Talk Online'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 51Talk Online's value and its price as these two are different measures arrived at by different means. Investors typically determine if 51Talk Online is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 51Talk Online'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.