Denison Mines (Denison Mines) Beneish M-Score

: -3.46 (As of Today)

View and export this data going back to 2007. Start your Free Trial

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 -3.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DNN' s Beneish M-Score Range Over the Past 10 Years
Min: -7.59 Med: -2.53 Max: 0.14
Current: -3.46

During the past 13 years, the highest Beneish M-Score of Denison Mines was 0.14. The lowest was -7.59. And the median was -2.53.

Denison Mines Beneish M-Score Historical Data

The historical data trend for Denison Mines'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.

Denison Mines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-3.00

-3.19

0.14

-2.02

-3.46

Denison Mines Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.02	1.56	4.71	1.95	-3.46

Competitive Comparison

For the Uranium subindustry, Denison Mines'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.

Denison Mines Beneish M-Score Distribution

For the Other Energy Sources industry and Energy sector, Denison Mines's Beneish M-Score distribution charts can be found below:

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

Denison Mines 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 Denison Mines 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 * 2.439

0.528 * -0.4166

0.404 * 1.1755

0.892 * 0.1917

0.115 * 0.967

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 5.5396

4.679 * -0.019511

0.327 * 0.6786

-3.32

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.43 Mil.
Revenue was -4.092 + 2.047 + 2.628 + 0.792 = $1.38 Mil.
Gross Profit was -0.956 + 0.241 + 0.364 + -1.044 = $-1.40 Mil.
Total Current Assets was $110.72 Mil.
Total Assets was $541.59 Mil.
Property, Plant and Equipment(Net PPE) was $190.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.96 Mil.
Selling, General, & Admin. Expense(SGA) was $10.21 Mil.
Total Current Liabilities was $13.38 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 25.698 + 43.04 + 0.046 + -1.754 = $67.03 Mil.
Non Operating Income was 36.362 + 49.979 + 7.18 + 6.835 = $100.36 Mil.
Cash Flow from Operations was -3.622 + -6.353 + -7.073 + -5.711 = $-22.76 Mil.

Total Receivables was $3.05 Mil.
Revenue was -3.677 + 2.281 + 5.311 + 3.258 = $7.17 Mil.
Gross Profit was -1.243 + 0.418 + 2.457 + 1.4 = $3.03 Mil.
Total Current Assets was $49.44 Mil.
Total Assets was $379.68 Mil.
Property, Plant and Equipment(Net PPE) was $186.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.60 Mil.
Selling, General, & Admin. Expense(SGA) was $9.61 Mil.
Total Current Liabilities was $13.56 Mil.
Long-Term Debt & Capital Lease Obligation was $0.27 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)
	=	(1.426 / 1.375)	/	(3.05 / 7.173)
	=	1.037091	/	0.425206
	=	2.439

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)
	=	(3.032 / 7.173)	/	(-1.395 / 1.375)
	=	0.422696	/	-1.014545
	=	-0.4166

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 - (110.719 + 190.031) / 541.594)	/	(1 - (49.437 + 186.607) / 379.681)
	=	0.444695	/	0.37831
	=	1.1755

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
	=	1.375	/	7.173
	=	0.1917

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))
	=	(6.604 / (6.604 + 186.607))	/	(6.963 / (6.963 + 190.031))
	=	0.03418	/	0.035346
	=	0.967

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)
	=	(10.209 / 1.375)	/	(9.614 / 7.173)
	=	7.424727	/	1.340304
	=	5.5396

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 + 13.377) / 541.594)	/	((0.265 + 13.555) / 379.681)
	=	0.024699	/	0.036399
	=	0.6786

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
	=	(67.03 - 100.356	-	-22.759)	/	541.594
	=	-0.019511

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.

Denison Mines has a M-score of -3.32 suggests that the company is unlikely to be a manipulator.

Denison Mines Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Denison Mines's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Denison Mines (Denison Mines) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Denison Mines Corp (AMEX:DNN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

IUQ:Germany IUQ:Germany DML:Canada

Address

40 University Avenue, Suite 1100, Toronto, ON, CAN, M5J 1T1

Website

https://www.denisonmines.com

Denison Mines Corp is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. The company has an effective 95% interest in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. The company is also engaged in mine decommissioning and environmental services through its Closed Mines group, which manages its Elliot Lake reclamation projects and provides third-party post-closure mine care and maintenance services.