OPAL Fuels (OPAL Fuels) Beneish M-Score : -2.95 (As of May. 28, 2024)

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What is OPAL Fuels 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 -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OPAL' s Beneish M-Score Range Over the Past 10 Years
Min: -308.33 Med: -2.93 Max: -2.1
Current: -2.95

During the past 5 years, the highest Beneish M-Score of OPAL Fuels was -2.10. The lowest was -308.33. And the median was -2.93.

OPAL Fuels Beneish M-Score Historical Data

The historical data trend for OPAL Fuels'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.

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OPAL Fuels Beneish M-Score Chart

OPAL Fuels Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.10

-2.90

OPAL Fuels Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial										-2.60	-308.33	-3.07	-2.90	-2.95

Competitive Comparison of OPAL Fuels's Beneish M-Score

For the Utilities - Regulated Gas subindustry, OPAL Fuels'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.

OPAL Fuels's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, OPAL Fuels's Beneish M-Score distribution charts can be found below:

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

OPAL Fuels 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 OPAL Fuels for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9323

0.528 * 0.9788

0.404 * 1.7817

0.892 * 1.2121

0.115 * 1.002

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7553

4.679 * -0.202892

0.327 * 0.9773

-2.95

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $50.9 Mil.
Revenue was 64.952 + 87.008 + 71.101 + 55.042 = $278.1 Mil.
Gross Profit was 16.627 + 35.317 + 19.206 + 10.921 = $82.1 Mil.
Total Current Assets was $105.7 Mil.
Total Assets was $750.5 Mil.
Property, Plant and Equipment(Net PPE) was $371.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General, & Admin. Expense(SGA) was $50.2 Mil.
Total Current Liabilities was $75.4 Mil.
Long-Term Debt & Capital Lease Obligation was $206.4 Mil.
Net Income was 2.302 + 5.608 + 2.382 + 20.773 = $31.1 Mil.
Non Operating Income was 5.274 + 7.63 + 1.239 + 121.376 = $135.5 Mil.
Cash Flow from Operations was 13.718 + 33.442 + -2.959 + 3.615 = $47.8 Mil.

Total Receivables was $45.1 Mil.
Revenue was 42.957 + 66.717 + 66.55 + 53.217 = $229.4 Mil.
Gross Profit was 6.795 + 28.691 + 17.196 + 13.59 = $66.3 Mil.
Total Current Assets was $134.8 Mil.
Total Assets was $606.7 Mil.
Property, Plant and Equipment(Net PPE) was $347.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.9 Mil.
Selling, General, & Admin. Expense(SGA) was $54.9 Mil.
Total Current Liabilities was $130.7 Mil.
Long-Term Debt & Capital Lease Obligation was $102.4 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)
	=	(50.926 / 278.103)	/	(45.064 / 229.441)
	=	0.183119	/	0.196408
	=	0.9323

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)
	=	(66.272 / 229.441)	/	(82.071 / 278.103)
	=	0.288841	/	0.29511
	=	0.9788

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 - (105.699 + 371.506) / 750.499)	/	(1 - (134.807 + 347.896) / 606.702)
	=	0.36415	/	0.204382
	=	1.7817

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
	=	278.103	/	229.441
	=	1.2121

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))
	=	(13.886 / (13.886 + 347.896))	/	(14.798 / (14.798 + 371.506))
	=	0.038382	/	0.038307
	=	1.002

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)
	=	(50.239 / 278.103)	/	(54.88 / 229.441)
	=	0.180649	/	0.23919
	=	0.7553

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)
	=	((206.416 + 75.354) / 750.499)	/	((102.352 + 130.714) / 606.702)
	=	0.375444	/	0.384152
	=	0.9773

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
	=	(31.065 - 135.519	-	47.816)	/	750.499
	=	-0.202892

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.

OPAL Fuels has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

OPAL Fuels Beneish M-Score Related Terms

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OPAL Fuels (OPAL Fuels) Business Description

Industry

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Traded in Other Exchanges

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Address

One North Lexington Avenue, Suite 1450, White Plains, NY, USA, 10601

Website

https://www.opalfuels.com

OPAL Fuels Inc is a fully integrated, nationwide leader in the production and distribution of low-carbon intensity renewable natural gas. The company's vertical waste-to-energy model combines the upstream production and downstream marketing and distribution of RNG, delivering a scalable, low-cost solution to decarbonize heavy-duty transportation and other industrial markets.