Retail Opportunity Investments Stock Beneish M Score

ROIC Stock  USD 17.37  0.01  0.06%   
This module uses fundamental data of Retail Opportunity to approximate the value of its Beneish M Score. Retail Opportunity 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 Retail Opportunity Piotroski F Score and Retail Opportunity Altman Z Score analysis.
  
At present, Retail Opportunity's Net Debt To EBITDA is projected to increase slightly based on the last few years of reporting. At present, Retail Opportunity's Free Cash Flow Yield is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Per Share is expected to grow to 1.24, whereas Price To Sales Ratio is forecasted to decline to 5.08.
At this time, it appears that Retail Opportunity is an unlikely manipulator. The earnings manipulation may begin if Retail Opportunity'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 Retail Opportunity 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 Retail Opportunity'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.
-2.91
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.05

Focus
Asset Quality

0.89

Focus
Expense Coverage

1.55

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.55

Focus
Depreciation Resistance

0.76

Focus
Net Sales Growth

0.61

Focus
Financial Leverage Condition

0.84

Focus

Retail Opportunity 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 Retail Opportunity'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 Receivables42.5 M65.9 M
Way Down
Slightly volatile
Total Revenue200.4 M327.7 M
Way Down
Slightly volatile
Total Assets2.1 BB
Way Down
Slightly volatile
Total Current Assets95.7 M73.6 M
Significantly Up
Pretty Stable
Non Current Assets TotalB2.9 B
Way Down
Slightly volatile
Depreciation And Amortization94.4 M104.2 M
Moderately Down
Slightly volatile
Selling General Administrative20.8 M21.9 M
Notably Down
Slightly volatile
Total Current Liabilities94.5 M133.8 M
Way Down
Pretty Stable
Non Current Liabilities TotalB1.3 B
Significantly Down
Slightly volatile
Short Term Debt89 M76.4 M
Fairly Up
Very volatile
Long Term Debt947.4 M1.3 B
Way Down
Slightly volatile
Short Term Investments562.4 K592 K
Notably Down
Slightly volatile

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

About Retail Opportunity 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

94.41 Million

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

Retail Opportunity 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 Retail Opportunity. 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 Receivables58.8M63.7M60.7M62.3M65.9M42.5M
Total Revenue295.0M284.1M284.1M309.0M327.7M200.4M
Total Assets2.9B2.9B2.9B3.0B3.0B2.1B
Total Current Assets67.4M75.2M81.4M76.2M73.6M95.7M
Net Debt1.4B1.4B1.3B1.4B1.5B875.6M
Short Term Debt80.7M45.2M24.1M250.9M76.4M89.0M
Long Term Debt1.0B1.0B1.3B1.3B1.3B947.4M
Operating Income115.4M94.4M114.9M114.7M109.8M62.0M

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

About Retail Opportunity Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Retail Opportunity Investments's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Retail Opportunity using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Retail Opportunity Investments 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 Retail Opportunity offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Retail Opportunity'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 Retail Opportunity Investments Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Retail Opportunity Investments Stock:
Is Retail 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 Retail Opportunity. If investors know Retail 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 Retail Opportunity 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
2.794
Dividend Share
0.6
Earnings Share
0.45
Revenue Per Share
2.664
Quarterly Revenue Growth
0.021
The market value of Retail Opportunity is measured differently than its book value, which is the value of Retail that is recorded on the company's balance sheet. Investors also form their own opinion of Retail Opportunity's value that differs from its market value or its book value, called intrinsic value, which is Retail Opportunity'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 Retail Opportunity's market value can be influenced by many factors that don't directly affect Retail Opportunity'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 Retail Opportunity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Retail Opportunity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Retail Opportunity'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.