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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 -2.48 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 * 1.1698+0.528 * 1.3281+0.404 * 1.1967+0.892 * 0.877+0.115 * 0.7845
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2474+4.679 * -0.0529-0.327 * 0.9669
=-2.48

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $177 Mil.
Revenue was 665.044606042 + 510.874275252 + 361.716302156 + 308.673068199 = $1,846 Mil.
Gross Profit was 117.352125347 + 111.488404028 + 33.1084225221 + 89.3051565099 = $351 Mil.
Total Current Assets was $1,531 Mil.
Total Assets was $6,184 Mil.
Property, Plant and Equipment(Net PPE) was $3,490 Mil.
Depreciation, Depletion and Amortization(DDA) was $283 Mil.
Selling, General & Admin. Expense(SGA) was $157 Mil.
Total Current Liabilities was $352 Mil.
Long-Term Debt was $1,120 Mil.
Net Income was -108.26298823 + 108.441409826 + -106.536373507 + 58.9936488734 = $-47 Mil.
Non Operating Income was -20.2623884849 + 36.087122368 + -15.5025593299 + 43.2496597611 = $44 Mil.
Cash Flow from Operations was 191.238473649 + 293.670277693 + -39.474949589 + -209.252230455 = $236 Mil.
Accounts Receivable was $173 Mil.
Revenue was 711.033326041 + 489.258254184 + 456.547513142 + 448.380884451 = $2,105 Mil.
Gross Profit was 205.51082914 + 100.324890698 + 123.71613425 + 102.363290537 = $532 Mil.
Total Current Assets was $1,593 Mil.
Total Assets was $6,413 Mil.
Property, Plant and Equipment(Net PPE) was $3,813 Mil.
Depreciation, Depletion and Amortization(DDA) was $239 Mil.
Selling, General & Admin. Expense(SGA) was $144 Mil.
Total Current Liabilities was $490 Mil.
Long-Term Debt was $1,088 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)
=(177.204438114 / 1846.30825165) / (172.725880551 / 2105.21997782)
=0.09597771 / 0.08204648
=1.1698

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)
=(531.915144625 / 2105.21997782) / (351.254108407 / 1846.30825165)
=0.25266488 / 0.19024673
=1.3281

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 - (1530.72419222 + 3490.20616238) / 6184.27018517) / (1 - (1592.62378765 + 3812.55742726) / 6413.35739809)
=0.18811271 / 0.15719944
=1.1967

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
=1846.30825165 / 2105.21997782
=0.877

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))
=(238.728093281 / (238.728093281 + 3812.55742726)) / (283.444400547 / (283.444400547 + 3490.20616238))
=0.0589265 / 0.07511146
=0.7845

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)
=(157.337055258 / 1846.30825165) / (143.817266846 / 2105.21997782)
=0.08521711 / 0.0683146
=1.2474

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)
=((1119.51945423 + 351.791738511) / 6184.27018517) / ((1088.19149712 + 489.78122949) / 6413.35739809)
=0.23791186 / 0.24604472
=0.9669

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
=(-47.3643030376 - 43.5718343143 - 236.181571298) / 6184.27018517
=-0.0529

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 -2.48 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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