Orion Office REIT (MEX:ONL) Beneish M-Score : -2.88 (As of Jun. 23, 2024)

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What is Orion Office REIT Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Orion Office REIT's Beneish M-Score or its related term are showing as below:

MEX:ONL' s Beneish M-Score Range Over the Past 10 Years
Min: -6.02 Med: -2.88 Max: -2.01
Current: -2.88

During the past 6 years, the highest Beneish M-Score of Orion Office REIT was -2.01. The lowest was -6.02. And the median was -2.88.

Orion Office REIT Beneish M-Score Historical Data

The historical data trend for Orion Office REIT's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Orion Office REIT Beneish M-Score Chart

Orion Office REIT Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.03

-2.01

-2.74

Orion Office REIT Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial													-2.58	-2.92	-2.69	-2.74	-2.88

Competitive Comparison of Orion Office REIT's Beneish M-Score

For the REIT - Office subindustry, Orion Office REIT's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Orion Office REIT's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Orion Office REIT's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Orion Office REIT's Beneish M-Score falls into.

Orion Office REIT Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Orion Office REIT for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1336

0.528 * 1.0292

0.404 * 0.9946

0.892 * 0.8203

0.115 * 1.0152

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.239

4.679 * -0.084658

0.327 * 0.9987

-2.94

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was MXN414 Mil.
Revenue was 783.293 + 742.64 + 854.85 + 891.894 = MXN3,273 Mil.
Gross Profit was 517.77 + 497.43 + 584.752 + 626.387 = MXN2,226 Mil.
Total Current Assets was MXN1,456 Mil.
Total Assets was MXN22,994 Mil.
Property, Plant and Equipment(Net PPE) was MXN380 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,797 Mil.
Selling, General, & Admin. Expense(SGA) was MXN329 Mil.
Total Current Liabilities was MXN2,412 Mil.
Long-Term Debt & Capital Lease Obligation was MXN5,971 Mil.
Net Income was -435.353 + -274.44 + -287.743 + -269.674 = MXN-1,267 Mil.
Non Operating Income was -327.743 + -103.662 + -194.343 + -212.636 = MXN-838 Mil.
Cash Flow from Operations was 182.924 + 330.998 + 447.143 + 556.782 = MXN1,518 Mil.

Total Receivables was MXN445 Mil.
Revenue was 904.675 + 980.532 + 1041.333 + 1063.216 = MXN3,990 Mil.
Gross Profit was 628.099 + 673.548 + 733.514 + 758.308 = MXN2,793 Mil.
Total Current Assets was MXN1,615 Mil.
Total Assets was MXN27,882 Mil.
Property, Plant and Equipment(Net PPE) was MXN472 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN2,440 Mil.
Selling, General, & Admin. Expense(SGA) was MXN324 Mil.
Total Current Liabilities was MXN3,601 Mil.
Long-Term Debt & Capital Lease Obligation was MXN6,577 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(413.944 / 3272.677)	/	(445.163 / 3989.756)
	=	0.126485	/	0.111576
	=	1.1336

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(2793.469 / 3989.756)	/	(2226.339 / 3272.677)
	=	0.70016	/	0.680281
	=	1.0292

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1456.222 + 380.087) / 22994.427)	/	(1 - (1615.058 + 471.678) / 27882.368)
	=	0.920141	/	0.925159
	=	0.9946

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	3272.677	/	3989.756
	=	0.8203

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(2440.356 / (2440.356 + 471.678))	/	(1797.397 / (1797.397 + 380.087))
	=	0.838025	/	0.825447
	=	1.0152

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(329.467 / 3272.677)	/	(324.183 / 3989.756)
	=	0.100672	/	0.081254
	=	1.239

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5971.017 + 2411.751) / 22994.427)	/	((6576.656 + 3600.962) / 27882.368)
	=	0.364557	/	0.36502
	=	0.9987

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-1267.21 - -838.384	-	1517.847)	/	22994.427
	=	-0.084658

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Orion Office REIT has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

Orion Office REIT Beneish M-Score Related Terms

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Orion Office REIT (MEX:ONL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Orion Office REIT Inc (MEX:ONL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ONL:USA OY9:Germany

Address

2398 East Camelback Road, Suite 1060, Phoenix, AZ, USA, 85016

Website

https://www.onlreit.com

Orion Office REIT Inc is a internally-managed REIT engaged in the ownership, acquisition, and management of a diversified portfolio of mission-critical and headquarters office buildings located in high quality suburban markets across the U.S. and leased on a single-tenant net lease basis to creditworthy clients. The Company operates in one business segment: direct ownership and operation of commercial real estate.