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ONIT (Onity Group) Beneish M-Score : -1.89 (As of Mar. 20, 2025)


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What is Onity Group 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 -1.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ONIT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.6   Med: -2.37   Max: -1.86
Current: -1.89

During the past 13 years, the highest Beneish M-Score of Onity Group was -1.86. The lowest was -2.60. And the median was -2.37.


Onity Group Beneish M-Score Historical Data

The historical data trend for Onity Group'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.

* Premium members only.

Onity Group Beneish M-Score Chart

Onity Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.41 -1.86 -2.34 -2.40 -1.89

Onity Group Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.40 -2.32 -2.54 -2.43 -1.89

Competitive Comparison of Onity Group's Beneish M-Score

For the Mortgage Finance subindustry, Onity Group'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.


Onity Group's Beneish M-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Onity Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Onity Group's Beneish M-Score falls into.



Onity Group 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 Onity Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.5308+0.528 * 1.1021+0.404 * 0.83+0.892 * 0.934+0.115 * 1.1165
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.374+4.679 * 0.049667-0.327 * 1.0246
=-1.89

* 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.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $12,592 Mil.
Revenue was 253.6 + 290.2 + 268.9 + 256.6 = $1,069 Mil.
Gross Profit was 102.6 + 145.4 + 126.9 + 120.6 = $496 Mil.
Total Current Assets was $13,473 Mil.
Total Assets was $16,435 Mil.
Property, Plant and Equipment(Net PPE) was $11 Mil.
Depreciation, Depletion and Amortization(DDA) was $8 Mil.
Selling, General, & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $252 Mil.
Long-Term Debt & Capital Lease Obligation was $14,684 Mil.
Net Income was -28.1 + 21.4 + 10.5 + 30.1 = $34 Mil.
Non Operating Income was -77 + -44.5 + -45.7 + -41.4 = $-209 Mil.
Cash Flow from Operations was -218 + 19.2 + -77.9 + -297.1 = $-574 Mil.
Total Receivables was $8,808 Mil.
Revenue was 295.1 + 281.5 + 292.4 + 275.9 = $1,145 Mil.
Gross Profit was 160 + 136 + 148.8 + 139.9 = $585 Mil.
Total Current Assets was $9,794 Mil.
Total Assets was $12,514 Mil.
Property, Plant and Equipment(Net PPE) was $13 Mil.
Depreciation, Depletion and Amortization(DDA) was $12 Mil.
Selling, General, & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $220 Mil.
Long-Term Debt & Capital Lease Obligation was $10,879 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)
=(12592 / 1069.3) / (8807.6 / 1144.9)
=11.775928 / 7.692899
=1.5308

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)
=(584.7 / 1144.9) / (495.5 / 1069.3)
=0.5107 / 0.463387
=1.1021

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 - (13473.3 + 11) / 16435.4) / (1 - (9793.6 + 13.1) / 12513.7)
=0.179558 / 0.216323
=0.83

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
=1069.3 / 1144.9
=0.934

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))
=(12.1 / (12.1 + 13.1)) / (8.3 / (8.3 + 11))
=0.480159 / 0.430052
=1.1165

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)
=(136.8 / 1069.3) / (106.6 / 1144.9)
=0.127934 / 0.093109
=1.374

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)
=((14683.9 + 252.4) / 16435.4) / ((10879.3 + 219.9) / 12513.7)
=0.908788 / 0.886964
=1.0246

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
=(33.9 - -208.6 - -573.8) / 16435.4
=0.049667

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.

Onity Group has a M-score of -1.89 suggests that the company is unlikely to be a manipulator.


Onity Group Beneish M-Score Related Terms

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Onity Group Business Description

Traded in Other Exchanges
Address
1661 Worthington Road, Suite 100, West Palm Beach, FL, USA, 33409
Onity Group Inc is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation's largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs.
Executives
Jenna D. Evans officer: Chief Risk & Compliance 1661 WORTHINGTON RD, SUITE 100, WEST PALM BEACH FL 33409
Sean Bradley O'neil officer: EVP & Chief Financial Officer 1661 WORTHINGTON ROAD, SUITE 100, WEST PALM BEACH FL 33409
Jacques J Busquet director C/O OCWEN FINANCIAL CORPORATION, 1661 WORTHINGTON ROAD, SUITE 100, WEST PALM BEACH FL 33409
Jenne K Britell director 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Phyllis R Caldwell director AMERICAN CAPITAL, LTD., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Glen A. Messina director, officer: President and CEO 3000 LEADENHALL ROAD, MOUNT LAUREL NJ 08054
Dennis Zeleny officer: Chief Administrative Officer 1818 MARKET STREET, SUITE 1500, PHILADELPHIA PA 19103-7583
Aaron D Wade officer: EVP, Capital Markets 1661 WORTHINGTON ROAD, SUITE 100, WEST PALM BEACH FL 33409
George T. Henley officer: EVP & Chief Growth Officer C/O OCWEN FINANCIAL CORPORATION, 1661 WORTHINGTON ROAD, SUITE 100, WEST PALM BEACH FL 33409
Soaries Deforest B. Jr. director C/O INDEPENDENCE REALTY TRUST, 1835 MARKET STREET, SUITE 2601, PHILADELPHIA PA 19103
Joseph B Long officer: EVP, Capital Markets C/O EVERBANK FINANCIAL CORP, 501 RIVERSIDE AVENUE, JACKSONVILLE FL 32202
Kevin Stein director 3000 LEADENHALL RD., MAILSTOP PCLG, MOUNT LAUREL NJ 08054
Deer Park Road Management Company, Lp 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Scott Edward Burg 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Agatecreek Llc 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487