Organigram Holdings Stock Beneish M Score

OGI Stock  USD 2.16  0.14  6.09%   
This module uses fundamental data of OrganiGram Holdings to approximate the value of its Beneish M Score. OrganiGram Holdings 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. Check out OrganiGram Holdings Piotroski F Score and OrganiGram Holdings Altman Z Score analysis.
For more detail on how to invest in OrganiGram Stock please use our How to Invest in OrganiGram Holdings guide.
  
The OrganiGram Holdings' current Short Term Debt is estimated to increase to about 2.3 M, while Net Debt is forecasted to increase to (24.9 M). As of now, OrganiGram Holdings' Price Earnings To Growth Ratio is increasing as compared to previous years. The OrganiGram Holdings' current Company Equity Multiplier is estimated to increase to 1.83, while Price Earnings Ratio is forecasted to increase to (115.69).
At this time, it appears that OrganiGram Holdings is an unlikely manipulator. The earnings manipulation may begin if OrganiGram Holdings' 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 OrganiGram Holdings 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 OrganiGram Holdings' 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.
-11.33
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-2.15

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.72

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

20.91

Focus

OrganiGram Holdings 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 OrganiGram Holdings' 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
Net Receivables36.4 M34.7 M
Sufficiently Up
Slightly volatile
Total Revenue180.2 M171.6 M
Sufficiently Up
Slightly volatile
Total Assets251.2 M343.2 M
Way Down
Slightly volatile
Total Current Assets119 M179.4 M
Way Down
Slightly volatile
Non Current Assets Total144.2 M163.9 M
Fairly Down
Slightly volatile
Property Plant Equipment150 M113.9 M
Significantly Up
Slightly volatile
Depreciation And Amortization19.3 M27.8 M
Way Down
Slightly volatile
Selling General Administrative59.1 M56.3 M
Sufficiently Up
Slightly volatile
Total Current Liabilities18.3 M25.8 M
Way Down
Slightly volatile
Non Current Liabilities Total4.8 M5.1 M
Notably Down
Pretty Stable
Short Term Debt2.3 M1.3 M
Way Up
Pretty Stable
Long Term Debt169.3 K178.2 K
Notably Down
Very volatile

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

About OrganiGram Holdings 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.

Other Operating Expenses

315.89 Million

As of now, OrganiGram Holdings' Other Operating Expenses is increasing as compared to previous years.

OrganiGram Holdings 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 OrganiGram Holdings. 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.
201920202021202220232024 (projected)
Net Receivables17.0M21.0M46.1M30.2M34.7M36.4M
Total Revenue86.8M79.2M145.8M149.2M171.6M180.2M
Total Assets417.6M554.0M577.1M298.5M343.2M251.2M
Total Current Assets170.2M260.6M221.6M156.0M179.4M119.0M
Net Debt79.1M(50.4M)(65.2M)(29.1M)(26.2M)(24.9M)
Short Term Debt11.6M80K996K1.1M1.3M2.3M
Long Term Debt46.1M103.7M230K155K178.3K169.3K
Operating Income(145.5M)(91.8M)(38.8M)(112.4M)(101.2M)(96.1M)
Investments(138.2M)(72.5M)95.5M20.1M23.2M24.3M

About OrganiGram Holdings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze OrganiGram Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of OrganiGram Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of OrganiGram Holdings 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.
Organigram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. was founded in 2013 and is headquartered in Moncton, Canada. Organigram Hlds is traded on NASDAQ Exchange in the United States.

OrganiGram Holdings Investors Sentiment

The influence of OrganiGram Holdings' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in OrganiGram. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to OrganiGram Holdings' public news can be used to forecast risks associated with an investment in OrganiGram. The trend in average sentiment can be used to explain how an investor holding OrganiGram can time the market purely based on public headlines and social activities around OrganiGram Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
OrganiGram Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for OrganiGram Holdings' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average OrganiGram Holdings' news discussions. The higher the estimated score, the more favorable is the investor's outlook on OrganiGram Holdings.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards OrganiGram Holdings in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, OrganiGram Holdings' short interest history, or implied volatility extrapolated from OrganiGram Holdings options trading.

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When determining whether OrganiGram Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of OrganiGram Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Organigram Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Organigram Holdings Stock:
Check out OrganiGram Holdings Piotroski F Score and OrganiGram Holdings Altman Z Score analysis.
For more detail on how to invest in OrganiGram Stock please use our How to Invest in OrganiGram Holdings guide.
Note that the OrganiGram Holdings information on this page should be used as a complementary analysis to other OrganiGram Holdings' 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 the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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Is OrganiGram Holdings' 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 OrganiGram Holdings. If investors know OrganiGram 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 OrganiGram Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.85)
Revenue Per Share
1.835
Quarterly Revenue Growth
(0.14)
Return On Assets
(0.06)
Return On Equity
(0.55)
The market value of OrganiGram Holdings is measured differently than its book value, which is the value of OrganiGram that is recorded on the company's balance sheet. Investors also form their own opinion of OrganiGram Holdings' value that differs from its market value or its book value, called intrinsic value, which is OrganiGram Holdings' 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 OrganiGram Holdings' market value can be influenced by many factors that don't directly affect OrganiGram Holdings' 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 OrganiGram Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if OrganiGram Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, OrganiGram Holdings' 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.