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GuruFocus has detected 4 Warning Signs with Cameco Corp $CCJ.
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Cameco Corp (NYSE:CCJ)
Beneish M-Score
-2.52 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Cameco Corp has a M-score of -3.34 suggests that the company is not a manipulator.

CCJ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Max: -1.24
Current: -2.52

-3.22
-1.24

During the past 13 years, the highest Beneish M-Score of Cameco Corp was -1.24. The lowest was -3.22. And the median was -2.52.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Cameco Corp for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.3843+0.528 * 1.0829+0.404 * 1.1728+0.892 * 0.8739+0.115 * 0.872
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1834+4.679 * -0.0587-0.327 * 0.9198
=-3.34

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $88 Mil.
Revenue was 510.874275252 + 361.716302156 + 308.673068199 + 711.033326041 = $1,892 Mil.
Gross Profit was 111.488404028 + 33.1084225221 + 89.3051565099 + 205.51082914 = $439 Mil.
Total Current Assets was $1,468 Mil.
Total Assets was $6,491 Mil.
Property, Plant and Equipment(Net PPE) was $3,883 Mil.
Depreciation, Depletion and Amortization(DDA) was $292 Mil.
Selling, General & Admin. Expense(SGA) was $156 Mil.
Total Current Liabilities was $318 Mil.
Long-Term Debt was $1,139 Mil.
Net Income was 108.441409826 + -106.536373507 + 58.9936488734 + -7.24640851747 = $54 Mil.
Non Operating Income was 36.087122368 + -15.5025593299 + 43.2496597611 + -40.8575803982 = $23 Mil.
Cash Flow from Operations was 293.670277693 + -39.474949589 + -209.252230455 + 366.689272953 = $412 Mil.
Accounts Receivable was $262 Mil.
Revenue was 489.258254184 + 456.547513142 + 448.380884451 + 771.068331599 = $2,165 Mil.
Gross Profit was 100.324890698 + 123.71613425 + 102.363290537 + 218.062781824 = $544 Mil.
Total Current Assets was $1,485 Mil.
Total Assets was $6,528 Mil.
Property, Plant and Equipment(Net PPE) was $4,065 Mil.
Depreciation, Depletion and Amortization(DDA) was $264 Mil.
Selling, General & Admin. Expense(SGA) was $151 Mil.
Total Current Liabilities was $469 Mil.
Long-Term Debt was $1,125 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(88.1568507782 / 1892.29697165) / (262.495100256 / 2165.25498338)
=0.04658722 / 0.12123057
=0.3843

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)
=(544.46709731 / 2165.25498338) / (439.4128122 / 1892.29697165)
=0.25145634 / 0.23221134
=1.0829

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1467.6289289 + 3883.19652121) / 6491.32285627) / (1 - (1484.6856626 + 4065.49600482) / 6528.18634102)
=0.17569568 / 0.14981262
=1.1728

4. SGI = Sales Growth Index

Ratio of sales 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
=1892.29697165 / 2165.25498338
=0.8739

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(263.627982059 / (263.627982059 + 4065.49600482)) / (291.528643096 / (291.528643096 + 3883.19652121))
=0.06089638 / 0.06983182
=0.872

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(156.082442931 / 1892.29697165) / (150.922193713 / 2165.25498338)
=0.08248306 / 0.06970181
=1.1834

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1139.03341471 + 318.249160818) / 6491.32285627) / ((1124.65551033 + 468.609980401) / 6528.18634102)
=0.22449701 / 0.24405944
=0.9198

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
=(53.652276675 - 22.976642401 - 411.632370602) / 6491.32285627
=-0.0587

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Cameco Corp has a M-score of -3.34 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cameco Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.68331.59310.80610.98031.35640.71460.87611.11350.48081.1305
GMI 0.80841.05571.10711.11981.11571.13991.14810.93521.05121.3276
AQI 1.29821.70270.52970.87360.95121.05671.62810.85211.19571.1967
SGI 1.45110.76751.24190.95881.10590.81991.20.9070.96610.9075
DEPI 0.92341.01981.08110.98270.95691.37560.8130.88211.06750.7629
SGAI 0.62410.69881.47931.37780.81871.44860.79270.96990.92191.2532
LVGI 1.11931.51920.58540.92091.00661.16050.99550.95321.03870.9669
TATA -0.06380.15250.0557-0.0111-0.0372-0.0639-0.0151-0.0239-0.0147-0.0523
M-score -2.63-1.23-2.25-2.62-2.17-3.19-2.14-2.66-2.94-2.49

Cameco Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.20411.10021.16510.53340.90980.47330.39160.90320.38431.1698
GMI 1.27730.93840.99061.01540.91231.05180.98391.13481.08291.3281
AQI 0.98540.85211.09581.08831.211.19571.15541.18591.17281.1967
SGI 1.00860.9180.97160.94550.94430.98130.88690.84680.87390.877
DEPI 0.91590.87320.89370.91460.9351.05251.1590.95410.8720.7845
SGAI 0.83520.96720.94561.06411.00810.92661.11921.17761.18341.2474
LVGI 0.99860.95321.06730.88421.01161.03870.98161.06570.91980.9669
TATA -0.0109-0.0242-0.0554-0.05240.0174-0.01250.02640.001-0.0587-0.0529
M-score -2.18-2.66-2.60-3.14-2.51-2.93-2.96-2.61-3.34-2.48
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