OceanFirst Beneish M Score

OCFC
 Stock
  

USD 21.42  0.05  0.23%   

This module uses fundamental data of OceanFirst Financial to approximate the value of its Beneish M Score. OceanFirst Financial 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. Please check OceanFirst Financial Piotroski F Score and OceanFirst Financial Altman Z Score analysis.
  
OceanFirst Financial Long Term Debt is projected to increase significantly based on the last few years of reporting. The past year's Long Term Debt was at 229.14 Million. The current year Issuance Repayment of Debt Securities is expected to grow to about 97.9 M, whereas Total Debt is forecasted to decline to about 674.9 M. OceanFirst Financial Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 22.61. The current year PPandE Turnover is expected to grow to 4.00, whereas Cash Flow Per Share is forecasted to decline to 2.21.
At this time, it appears that OceanFirst Financial Corp is an unlikely manipulator. The earnings manipulation may begin if OceanFirst Financial'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 OceanFirst Financial 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 OceanFirst Financial'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.
-2.83
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.98Focus

OceanFirst Financial 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 OceanFirst Financial'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
Revenues420.7 M389.9 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense165.1 M153 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations172.6 M160 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion15.4 M14.2 M
Significantly Up
Increasing
Slightly volatile
Total Assets12.7 B11.7 B
Significantly Up
Increasing
Slightly volatile
Investments8.9 B8.3 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net127.4 M118.1 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables26.9 M24.9 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities11 B10.2 B
Significantly Up
Increasing
Slightly volatile
Total Debt674.9 M806.9 M
Fairly Down
Increasing
Slightly volatile
Operating Income133.2 M123.5 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About OceanFirst Financial 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 Amortization and Accretion

15.37 Million

OceanFirst Financial Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 14.25 Million

OceanFirst Financial 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 OceanFirst Financial. 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.
201720182019202020212022 (projected)
Trade and Non Trade Receivables11.99 M14.25 M19.69 M21.67 M24.93 M26.89 M
Revenues215.9 M311.48 M350.96 M445.45 M389.93 M420.71 M
Total Assets5.42 B7.52 B8.25 B11.45 B11.74 B12.67 B
Property Plant and Equipment Net71.39 M101.78 M111.21 M102.69 M118.09 M127.42 M
Depreciation Amortization and Accretion5.41 M8.34 M12.52 M12.39 M14.25 M15.37 M
Selling General and Administrative Expense70 M89.05 M126.07 M133.07 M153.03 M165.12 M
Total Liabilities4.81 B6.48 B7.09 B9.96 B10.22 B11.03 B
Total Debt391.02 M436.03 M624.74 M701.68 M806.94 M674.94 M
Operating Income35.34 M65.33 M85.5 M107.36 M123.46 M133.21 M
Net Cash Flow from Operations80.13 M92.55 M100.25 M132.66 M159.97 M172.6 M
Investments4.43 B4.84 B6.59 B7.2 B8.28 B8.93 B

About OceanFirst Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze OceanFirst Financial Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of OceanFirst Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of OceanFirst Financial Corp 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.
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services. The company was founded in 1902 and is based in Red Bank, New Jersey. OceanFirst Financial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 894 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in OceanFirst Financial without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Efficient Frontier Now

   

Efficient Frontier

Plot and analyze your portfolio and positions against risk-return landscape of the market.
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as OceanFirst Financial Corp using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check OceanFirst Financial Piotroski F Score and OceanFirst Financial Altman Z Score analysis. Note that the OceanFirst Financial Corp information on this page should be used as a complementary analysis to other OceanFirst Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

Complementary Tools for OceanFirst Stock analysis

When running OceanFirst Financial Corp price analysis, check to measure OceanFirst Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy OceanFirst Financial is operating at the current time. Most of OceanFirst Financial's value examination focuses on studying past and present price action to predict the probability of OceanFirst Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move OceanFirst Financial's price. Additionally, you may evaluate how the addition of OceanFirst Financial to your portfolios can decrease your overall portfolio volatility.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Is OceanFirst Financial's industry 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 OceanFirst Financial. If investors know OceanFirst 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 OceanFirst Financial 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 YOY
-0.041
Market Capitalization
1.3 B
Quarterly Revenue Growth YOY
0.052
Return On Assets
0.0085
Return On Equity
0.0674
The market value of OceanFirst Financial Corp is measured differently than its book value, which is the value of OceanFirst that is recorded on the company's balance sheet. Investors also form their own opinion of OceanFirst Financial's value that differs from its market value or its book value, called intrinsic value, which is OceanFirst Financial'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 OceanFirst Financial's market value can be influenced by many factors that don't directly affect OceanFirst Financial'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 OceanFirst Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine OceanFirst Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, OceanFirst Financial'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.