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OPAD (Offerpad Solutions) Beneish M-Score : -2.73 (As of Mar. 17, 2025)


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What is Offerpad Solutions 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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OPAD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.2   Med: -2.73   Max: 3.05
Current: -2.73

During the past 6 years, the highest Beneish M-Score of Offerpad Solutions was 3.05. The lowest was -4.20. And the median was -2.73.


Offerpad Solutions Beneish M-Score Historical Data

The historical data trend for Offerpad Solutions'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.

Offerpad Solutions Beneish M-Score Chart

Offerpad Solutions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial - - -4.20 3.05 -2.73

Offerpad Solutions Quarterly Data
Dec19 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 3.05 2.48 6.60 -1.56 -2.73

Competitive Comparison of Offerpad Solutions's Beneish M-Score

For the Real Estate Services subindustry, Offerpad Solutions'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.


Offerpad Solutions's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Offerpad Solutions's Beneish M-Score distribution charts can be found below:

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



Offerpad Solutions 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 Offerpad Solutions 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 * 0.554+0.528 * 0.6795+0.404 * 1.4565+0.892 * 0.699+0.115 * 15.9378
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9761+4.679 * -0.273401-0.327 * 1.1027
=-2.73

* 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 $3.8 Mil.
Revenue was 174.272 + 208.067 + 251.122 + 285.358 = $918.8 Mil.
Gross Profit was 10.589 + 17.14 + 21.871 + 22.595 = $72.2 Mil.
Total Current Assets was $294.2 Mil.
Total Assets was $313.1 Mil.
Property, Plant and Equipment(Net PPE) was $9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.6 Mil.
Selling, General, & Admin. Expense(SGA) was $113.7 Mil.
Total Current Liabilities was $251.0 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 Mil.
Net Income was -17.325 + -13.537 + -13.782 + -17.515 = $-62.2 Mil.
Non Operating Income was 0.367 + 0.526 + 0.606 + 1.098 = $2.6 Mil.
Cash Flow from Operations was 33.237 + 39.595 + -54.385 + 2.386 = $20.8 Mil.
Total Receivables was $9.9 Mil.
Revenue was 240.458 + 234.228 + 230.147 + 609.579 = $1,314.4 Mil.
Gross Profit was 16.692 + 23.973 + 22.231 + 7.285 = $70.2 Mil.
Total Current Assets was $371.6 Mil.
Total Assets was $379.7 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.7 Mil.
Selling, General, & Admin. Expense(SGA) was $166.6 Mil.
Total Current Liabilities was $276.0 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 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)
=(3.848 / 918.819) / (9.935 / 1314.412)
=0.004188 / 0.007559
=0.554

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)
=(70.181 / 1314.412) / (72.195 / 918.819)
=0.053393 / 0.078574
=0.6795

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 - (294.212 + 9.127) / 313.053) / (1 - (371.605 + 0) / 379.694)
=0.03103 / 0.021304
=1.4565

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
=918.819 / 1314.412
=0.699

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))
=(0.728 / (0.728 + 0)) / (0.611 / (0.611 + 9.127))
=1 / 0.062744
=15.9378

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)
=(113.712 / 918.819) / (166.649 / 1314.412)
=0.123759 / 0.126786
=0.9761

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)
=((0 + 250.965) / 313.053) / ((0 + 276.029) / 379.694)
=0.801669 / 0.726978
=1.1027

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
=(-62.159 - 2.597 - 20.833) / 313.053
=-0.273401

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.

Offerpad Solutions has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.


Offerpad Solutions Beneish M-Score Related Terms

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Offerpad Solutions Business Description

Traded in Other Exchanges
N/A
Address
2150 E. Germann Road, Suite 1, Chandler, AZ, USA, 85286
Offerpad Solutions Inc provides a way to buy and sell a home. It uses technology-enabled solutions to remake the home selling and buying experience by offering customers the convenience, control, and certainty to solve their housing needs. It combines fundamental real estate expertise with the data-driven digital Solutions Center platform to efficiently sell and buy their homes online with streamlined access to other services including mortgage, listing, renovation and buyer representation services.
Executives
Roberto Marco Sella director 2400 MARKET STREET, SUITE 302, PHILADELPHIA PA 19103
Brian Bair director, officer: Chief Executive Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Jawad A Ahsan officer: Chief Financial Officer 17800 N 85TH ST, SCOTTSDALE AZ 85255
Kenneth D Degiorgio director
Ryan Ohara director 6922 HOLLYWOOD BLVD., 12TH FL, LOS ANGELES CA 90028
Stephen Michael Johnson officer: Chief Operating Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Benjamin Adam Aronovitch officer: Chief Legal Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Katherine Curnutte director 4301 50TH STREET, N.W., SUITE 300, PMB 1044, WASHINGTON DC 20007
Ll Capital Partners I, L.p. 10 percent owner C/O LL FUNDS, LLC, 2400 MARKET STREET, SUITE 302, PHILADELPHIA PA 19103
Michael S. Burnett officer: Chief Financial Officer 8601 NORTH SCOTTSDALE ROAD, SUITE 225, SCOTTSDALE AZ 85253
First American Financial Corp 10 percent owner 1 FIRST AMERICAN WAY, SANTA ANA CA 92707
Sheryl Palmer director 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Supernova Partners Llc 10 percent owner 4520 DEXTER STREET, N.W., WASHINGTON DC 20007
Michael S. Clifton officer: Chief Financial Officer C/O SUPERNOVA PARTNERS ACQUISITION CO., 4520 DEXTER STREET, N.W., WASHINGTON DC 20007
Gregg Renfrew director C/O SUPERNOVA PARTNERS ACQUISITION CO., 4520 DEXTER STREET, N.W., WASHINGTON DC 20007