Oceaneering Beneish M Score

OII
 Stock
  

USD 14.85  0.12  0.81%   

This module uses fundamental data of Oceaneering International to approximate the value of its Beneish M Score. Oceaneering International 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 Oceaneering International Piotroski F Score and Oceaneering International Altman Z Score analysis.
  
Oceaneering International Long Term Debt to Equity is most likely to increase slightly in the upcoming years. The last year's value of Long Term Debt to Equity was reported at 1.39. The current Debt to Equity Ratio is estimated to increase to 1.50, while Total Debt is projected to decrease to roughly 947.4 M. Oceaneering International Accounts Payable Turnover is most likely to drop in the upcoming years. The last year's value of Accounts Payable Turnover was reported at 17.27. The current Accrued Expenses Turnover is estimated to increase to 8.10, while Calculated Tax Rate is projected to decrease to 34.73.
At this time, it appears that Oceaneering International is an unlikely manipulator. The earnings manipulation may begin if Oceaneering International'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 Oceaneering International 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 Oceaneering International'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.
-3.17
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset Quality-0.55Focus
Expense Coverage0.79Focus
Gross Margin Strengs1.19Focus
Accruals Factor0.79Focus
Depreciation Resistance1.13Focus
Net Sales Growth1.27Focus
Financial Leverage Condition0.67Focus

Oceaneering International 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 Oceaneering International'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
Selling General and Administrative Expense246.9 M247.1 M
Slightly Down
Increasing
Slightly volatile
Revenues2.4 B1.9 B
Significantly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables433.6 M379.2 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net1.2 B1.1 B
Significantly Up
Increasing
Stable
Operating Income40.8 M39.8 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations312.2 M225.3 M
Significantly Up
Decreasing
Slightly volatile
Liabilities Non Current1.1 B1.2 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities580.2 M501.2 M
Fairly Up
Decreasing
Stable
Total Liabilities1.3 B1.5 B
Significantly Down
Increasing
Slightly volatile
Investments Non Current36.9 M33.7 M
Significantly Up
Decreasing
Slightly volatile
Investments36.9 M33.7 M
Significantly Up
Decreasing
Slightly volatile
Gross Margin16.7814.1266
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion285.4 M302.9 M
Notably Down
Increasing
Slightly volatile
Debt Non Current947.4 M1.1 B
Fairly Down
Increasing
Slightly volatile
Total Debt947.4 M1.1 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current1.8 B1.7 B
Notably Up
Increasing
Slightly volatile
Current Assets1.2 B1.2 B
Fairly Down
Increasing
Very volatile
Total Assets2.6 BB
Significantly Up
Decreasing
Stable

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

About Oceaneering International 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.

Operating Expenses

366.78 Million

Oceaneering International Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 447.3 Million

Oceaneering International 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 Oceaneering International. 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)
Revenues1.92 B1.91 B2.05 B1.83 B1.87 B2.37 B
Total Assets3.02 B2.82 B2.74 B2.05 B1.96 B2.63 B
Current Assets1.19 B1.24 B1.24 B1.17 B1.19 B1.16 B
Assets Non Current1.87 B1.84 B1.58 B1.5 B1.72 B1.84 B
Total Liabilities1.36 B1.42 B1.67 B1.49 B1.46 B1.34 B
Current Liabilities435.8 M494.74 M600.96 M437.12 M501.16 M580.2 M
Total Debt793.06 M792.31 M786.58 M957.5 M1.1 B947.37 M
Debt Non Current793.06 M792.31 M786.58 M957.5 M1.1 B947.37 M
Operating Income10.66 M(145.48 M)(290.71 M)(446.08 M)39.8 M40.85 M
Gross Margin10.136.774.88.9714.1316.78

About Oceaneering International Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Oceaneering International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Oceaneering International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Oceaneering International 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.
Oceaneering International, Inc. provides engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas. Oceaneering International operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 8500 people.

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Please check Oceaneering International Piotroski F Score and Oceaneering International Altman Z Score analysis. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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Is Oceaneering International'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 Oceaneering International. If investors know Oceaneering 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 Oceaneering International 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
(0.38) 
Market Capitalization
1.5 B
Quarterly Revenue Growth YOY
0.2
Return On Assets
0.018
Return On Equity
(0.07) 
The market value of Oceaneering International is measured differently than its book value, which is the value of Oceaneering that is recorded on the company's balance sheet. Investors also form their own opinion of Oceaneering International's value that differs from its market value or its book value, called intrinsic value, which is Oceaneering International'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 Oceaneering International's market value can be influenced by many factors that don't directly affect Oceaneering International'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 Oceaneering International's value and its price as these two are different measures arrived at by different means. Investors typically determine Oceaneering International value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oceaneering International'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.