On24 Inc Stock Beneish M Score

ONTF Stock  USD 6.43  0.18  2.88%   
This module uses fundamental data of ON24 to approximate the value of its Beneish M Score. ON24 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 ON24 Piotroski F Score and ON24 Altman Z Score analysis.
  
The current Short and Long Term Debt Total is estimated to decrease to about 5.1 M. The current Net Debt is estimated to decrease to about (50.2 M). At this time, ON24's Capex To Depreciation is most likely to slightly decrease in the upcoming years. The ON24's current Payables Turnover is estimated to increase to 24.26, while PTB Ratio is projected to decrease to 1.85.
At this time, it appears that ON24 Inc is an unlikely manipulator. The earnings manipulation may begin if ON24'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 ON24 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 ON24'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.
-3.23
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.06

Focus
Asset Quality

1.06

Focus
Expense Coverage

0.69

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

0.69

Focus
Depreciation Resistance

0.81

Focus
Net Sales Growth

0.99

Focus
Financial Leverage Condition

1.12

Focus

ON24 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 ON24'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 Receivables39.8 M37.9 M
Sufficiently Up
Slightly volatile
Total Revenue162.6 M163.7 M
Slightly Down
Slightly volatile
Total Assets265.1 M280.3 M
Notably Down
Slightly volatile
Total Current Assets239.2 M253.8 M
Notably Down
Slightly volatile
Non Current Assets Total25.9 M26.5 M
Fairly Down
Slightly volatile
Property Plant Equipment9.2 M14.7 M
Way Down
Slightly volatile
Depreciation And Amortization4.5 M5.4 M
Fairly Down
Slightly volatile
Selling General Administrative33.7 M49.1 M
Way Down
Slightly volatile
Total Current Liabilities101.3 M96.1 M
Notably Up
Slightly volatile
Non Current Liabilities Total3.8 MM
Notably Down
Slightly volatile
Short Term Debt4.1 M5.8 M
Way Down
Slightly volatile
Long Term Debt1.7 M1.8 M
Notably Down
Slightly volatile
Short Term Investments123.6 M145.5 M
Fairly Down
Slightly volatile
Gross Profit Margin0.580.7298
Significantly Down
Very volatile

ON24 Inc 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 ON24's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ON24 in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ON24's degree of accounting gimmicks and manipulations.

About ON24 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

4.51 Million

At this time, ON24's Depreciation And Amortization is most likely to increase significantly in the upcoming years.

ON24 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 ON24. 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 Receivables22.6M48.6M46.1M43.8M37.9M39.8M
Total Revenue89.1M156.9M203.6M190.9M163.7M162.6M
Total Assets68.5M156.7M480.5M425.5M280.3M265.1M
Total Current Assets54.2M127.5M449.1M391.3M253.8M239.2M
Net Debt5.2M(30.2M)(161.0M)(17.7M)(47.8M)(50.2M)
Short Term Debt1.0M2.4M3.8M8.4M5.8M4.1M
Operating Income(16.1M)21.8M(23.6M)(59.6M)(54.1M)(51.4M)
Investments(3M)2M(215.6M)(82.8M)108.9M114.3M

ON24 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, ON24's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to ON24's managers, analysts, and investors.
Environmental
Governance
Social

About ON24 Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ON24 Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ON24 using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ON24 Inc 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 ON24 Inc is a strong investment it is important to analyze ON24'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 ON24's future performance. For an informed investment choice regarding ON24 Stock, refer to the following important reports:
Check out ON24 Piotroski F Score and ON24 Altman Z Score analysis.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Application Software 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 ON24. If investors know ON24 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 ON24 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.04)
Revenue Per Share
3.615
Quarterly Revenue Growth
(0.07)
Return On Assets
(0.11)
Return On Equity
(0.24)
The market value of ON24 Inc is measured differently than its book value, which is the value of ON24 that is recorded on the company's balance sheet. Investors also form their own opinion of ON24's value that differs from its market value or its book value, called intrinsic value, which is ON24'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 ON24's market value can be influenced by many factors that don't directly affect ON24'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 ON24's value and its price as these two are different measures arrived at by different means. Investors typically determine if ON24 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ON24'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.