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Proofpoint (Proofpoint) Beneish M-Score : -3.22 (As of Apr. 26, 2024)


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What is Proofpoint 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 -3.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PFPT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Med: -3.16   Max: -2.17
Current: -3.22

During the past 12 years, the highest Beneish M-Score of Proofpoint was -2.17. The lowest was -3.53. And the median was -3.16.


Proofpoint Beneish M-Score Historical Data

The historical data trend for Proofpoint'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.

Proofpoint Beneish M-Score Chart

Proofpoint Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.22 -2.81 -2.80 -3.14 -3.26

Proofpoint Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.52 -3.32 -3.26 -3.17 -3.22

Competitive Comparison of Proofpoint's Beneish M-Score

For the Software - Infrastructure subindustry, Proofpoint'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.


Proofpoint's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Proofpoint's Beneish M-Score distribution charts can be found below:

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



Proofpoint 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 Proofpoint 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 * 1.015+0.528 * 0.9855+0.404 * 0.9615+0.892 * 1.1627+0.115 * 1.4405
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0438+4.679 * -0.182557-0.327 * 1.1841
=-3.22

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Total Receivables was $204 Mil.
Revenue was 308.653 + 287.831 + 275.129 + 266.669 = $1,138 Mil.
Gross Profit was 231.574 + 214.311 + 205.097 + 197.748 = $849 Mil.
Total Current Assets was $1,236 Mil.
Total Assets was $2,512 Mil.
Property, Plant and Equipment(Net PPE) was $286 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General, & Admin. Expense(SGA) was $676 Mil.
Total Current Liabilities was $899 Mil.
Long-Term Debt & Capital Lease Obligation was $1,081 Mil.
Net Income was -52.915 + -45.319 + -35.102 + -31.875 = $-165 Mil.
Non Operating Income was -1.712 + 0.365 + -2.862 + -0.119 = $-4 Mil.
Cash Flow from Operations was 60.86 + 95.09 + 55.681 + 86.023 = $298 Mil.
Total Receivables was $173 Mil.
Revenue was 258.438 + 249.774 + 243.429 + 227.385 = $979 Mil.
Gross Profit was 190.863 + 180.843 + 180.167 + 167.504 = $719 Mil.
Total Current Assets was $1,227 Mil.
Total Assets was $2,337 Mil.
Property, Plant and Equipment(Net PPE) was $152 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General, & Admin. Expense(SGA) was $557 Mil.
Total Current Liabilities was $744 Mil.
Long-Term Debt & Capital Lease Obligation was $813 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)
=(204.264 / 1138.282) / (173.086 / 979.026)
=0.179449 / 0.176794
=1.015

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)
=(719.377 / 979.026) / (848.73 / 1138.282)
=0.734788 / 0.745624
=0.9855

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 - (1235.826 + 286.127) / 2511.745) / (1 - (1227.296 + 151.991) / 2337.132)
=0.394065 / 0.409838
=0.9615

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
=1138.282 / 979.026
=1.1627

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))
=(88.555 / (88.555 + 151.991)) / (98.228 / (98.228 + 286.127))
=0.368142 / 0.255566
=1.4405

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)
=(675.608 / 1138.282) / (556.705 / 979.026)
=0.593533 / 0.568631
=1.0438

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)
=((1081.152 + 899.185) / 2511.745) / ((812.693 + 743.524) / 2337.132)
=0.788431 / 0.665866
=1.1841

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
=(-165.211 - -4.328 - 297.654) / 2511.745
=-0.182557

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.

Proofpoint has a M-score of -3.22 suggests that the company is unlikely to be a manipulator.


Proofpoint Beneish M-Score Related Terms

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Proofpoint (Proofpoint) Business Description

Traded in Other Exchanges
N/A
Address
892 Ross Drive, Sunnyvale, CA, USA, 94089
Proofpoint Inc. is a provider of cloud-based security solutions to large- and mid-sized organizations in a wide range of industries. The firm's solutions are delivered through its security-as-a-service platform, which hosts an integrated set of on-demand data protection applications. These solutions include threat protection, incident response, regulatory compliance, archiving, governance, and secure communication capabilities. The company derives revenue from subscription fees and hardware, training, and professional services fees. A majority of the firm's revenue is generated in the United States.
Executives
Robert Darren Lee officer: EVP/GM Compliance/Digital Risk C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Gary Steele director, officer: Chairman and CEO C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
David Knight officer: EVP/GM, Security Products C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Ashan Willy officer: EVP/GM-Sec Prd & Svc Grp C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Auvil Paul R. Iii officer: Chief Financial Officer C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
Dana L Evan director 550 EAST TIMPANOGOS CIRCLE, *, OREM UT 84097
Blake P. Salle officer: EVP, Worldwide Sales C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Bhagwat Swaroop officer: EVP Indus. Solutions/Bus. Dev. C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Kevin Harvey director 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Richard Scott Herren director 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Leyla D. Seka director C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Kristen Gil director C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Michael M Johnson director C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Richard P Wallace director KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134
Jonathan D Feiber director 3000 SAND HILL ROAD BLDG 1, MENLO PARK CA 94025