Ohio Valley Banc Stock Beneish M Score

OVBC Stock  USD 27.75  0.09  0.32%   
This module uses fundamental data of Ohio Valley to approximate the value of its Beneish M Score. Ohio Valley 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 Ohio Valley Piotroski F Score and Ohio Valley Altman Z Score analysis.
  
At present, Ohio Valley's Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 16.61, whereas Short and Long Term Debt Total is forecasted to decline to about 44.2 M. At present, Ohio Valley's Days Sales Outstanding is projected to drop based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 38.21, whereas Dividend Yield is forecasted to decline to 0.02.
At this time, it appears that Ohio Valley Banc is an unlikely manipulator. The earnings manipulation may begin if Ohio Valley'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 Ohio Valley 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 Ohio Valley'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.
-2.96
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.83

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.03

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.03

Focus
Depreciation Resistance

1.05

Focus
Net Sales Growth

0.74

Focus
Financial Leverage Condition

1.08

Focus

Ohio Valley 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 Ohio Valley'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 Receivables2.2 M3.6 M
Way Down
Slightly volatile
Total Revenue42.1 M56.6 M
Way Down
Slightly volatile
Total Assets890.4 M1.4 B
Way Down
Slightly volatile
Total Current Assets121.7 M128.1 M
Notably Down
Slightly volatile
Non Current Assets Total1.3 B1.3 B
Sufficiently Up
Slightly volatile
Property Plant Equipment13.1 M23.5 M
Way Down
Slightly volatile
Depreciation And Amortization838.7 K1.6 M
Way Down
Pretty Stable
Selling General Administrative18.3 M24 M
Way Down
Slightly volatile
Total Current Liabilities559.7 M762.6 M
Way Down
Slightly volatile
Non Current Liabilities Total467.8 M445.6 M
Sufficiently Up
Pretty Stable
Short Term Debt11.1 MM
Significantly Up
Slightly volatile
Long Term Debt35.4 M53.1 M
Way Down
Slightly volatile
Operating Income11.2 M21.8 M
Way Down
Slightly volatile
Total Cash From Operating Activities12.6 M20.7 M
Way Down
Slightly volatile
Long Term Investments161.7 M170.2 M
Notably Down
Slightly volatile
Gross Profit Margin1.061.19
Fairly Down
Slightly volatile

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

About Ohio Valley 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

838,686

At present, Ohio Valley's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Ohio Valley 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 Ohio Valley. 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 Receivables2.6M3.3M2.7M3.1M3.6M2.2M
Total Revenue51.0M49.4M50.9M54.9M56.6M42.1M
Total Assets1.0B1.2B1.2B1.2B1.4B890.4M
Total Current Assets162.6M256.4M334.1M235.0M128.1M121.7M
Net Debt(11.2M)(103.6M)(125.1M)(20.1M)(73.8M)(70.1M)
Short Term Debt7.5M6.5M3.3M3.8M8.0M11.1M
Long Term Debt42.5M36.4M28.1M26.4M53.1M35.4M
Operating Income11.7M12.3M14.0M18.8M21.8M11.2M
Investments5.9M(88.7M)(52.6M)(82.3M)(85.8M)(81.5M)

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

About Ohio Valley Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ohio Valley Banc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ohio Valley using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ohio Valley Banc 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 Ohio Valley Banc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ohio Valley's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ohio Valley Banc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ohio Valley Banc Stock:
Check out Ohio Valley Piotroski F Score and Ohio Valley Altman Z Score analysis.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Is Regional Banks 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 Ohio Valley. If investors know Ohio 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 Ohio Valley 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
0.224
Dividend Share
0.88
Earnings Share
2.47
Revenue Per Share
12.065
Quarterly Revenue Growth
0.112
The market value of Ohio Valley Banc is measured differently than its book value, which is the value of Ohio that is recorded on the company's balance sheet. Investors also form their own opinion of Ohio Valley's value that differs from its market value or its book value, called intrinsic value, which is Ohio Valley'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 Ohio Valley's market value can be influenced by many factors that don't directly affect Ohio Valley'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 Ohio Valley's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ohio Valley is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ohio Valley'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.