Switch to:
Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.82 (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.

Pengrowth Energy Corp has a M-score of -3.98 suggests that the company is not a manipulator.

PGH' s Beneish M-Score Range Over the Past 10 Years
Min: -20.09   Max: 2.09
Current: -3.82

-20.09
2.09

During the past 13 years, the highest Beneish M-Score of Pengrowth Energy Corp was 2.09. The lowest was -20.09. And the median was -2.72.


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 Pengrowth Energy 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 * 1.5906+0.528 * 1.1584+0.404 * 0.8551+0.892 * 0.498+0.115 * 0.8277
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7198+4.679 * -0.2982-0.327 * 1.2462
=-3.98

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $101.7 Mil.
Revenue was 220.301903303 + 314.262023217 + 136.999595633 + 173.403074972 = $845.0 Mil.
Gross Profit was 140.013126231 + 221.996080205 + 17.8730287101 + 72.5154541132 = $452.4 Mil.
Total Current Assets was $312.3 Mil.
Total Assets was $3,318.5 Mil.
Property, Plant and Equipment(Net PPE) was $2,801.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $364.6 Mil.
Selling, General & Admin. Expense(SGA) was $77.3 Mil.
Total Current Liabilities was $179.9 Mil.
Long-Term Debt was $1,351.1 Mil.
Net Income was -341.719536207 + -248.454696216 + -108.693894056 + -127.199239182 = $-826.1 Mil.
Non Operating Income was -72.6318092321 + -34.4489672848 + -13.1014961585 + -75.2892692978 = $-195.5 Mil.
Cash Flow from Operations was 99.9051994458 + 99.276345545 + 78.8515972503 + 81.0746552544 = $359.1 Mil.
Accounts Receivable was $128.4 Mil.
Revenue was 709.764134582 + 419.671237853 + 320.036934441 + 247.254725473 = $1,696.7 Mil.
Gross Profit was 575.875823795 + 261.284170375 + 135.457063712 + 79.7479747975 = $1,052.4 Mil.
Total Current Assets was $388.2 Mil.
Total Assets was $5,350.2 Mil.
Property, Plant and Equipment(Net PPE) was $4,575.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $482.1 Mil.
Selling, General & Admin. Expense(SGA) was $90.3 Mil.
Total Current Liabilities was $518.7 Mil.
Long-Term Debt was $1,462.0 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)
=(101.728287027 / 844.966597126) / (128.425251474 / 1696.72703235)
=0.12039326 / 0.07568999
=1.5906

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)
=(221.996080205 / 1696.72703235) / (140.013126231 / 844.966597126)
=0.62023237 / 0.53540305
=1.1584

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 - (312.331364399 + 2801.42930066) / 3318.52986217) / (1 - (388.224072147 + 4575.87582379) / 5350.15608741)
=0.06170479 / 0.07215793
=0.8551

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
=844.966597126 / 1696.72703235
=0.498

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))
=(482.149034178 / (482.149034178 + 4575.87582379)) / (364.615913873 / (364.615913873 + 2801.42930066))
=0.09532358 / 0.11516447
=0.8277

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)
=(77.310608541 / 844.966597126) / (90.2677692367 / 1696.72703235)
=0.09149546 / 0.05320111
=1.7198

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)
=((1351.12666813 + 179.902282506) / 3318.52986217) / ((1462.01873049 + 518.730489074) / 5350.15608741)
=0.46135759 / 0.3702227
=1.2462

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
=(-826.06736566 - -195.471541973 - 359.107797495) / 3318.52986217
=-0.2982

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.

Pengrowth Energy Corp has a M-score of -3.98 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 own currency.

Pengrowth Energy Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12980.97230.75461.69520.80860.93471.1271.01360.58771.618
GMI 1.09050.71541.33641.23160.91091.04551.0061.11840.73341.1516
AQI 1.6350.83521.06111.07451.62930.5670.74761.0950.63350.8551
SGI 1.06231.61141.030.63681.21061.01171.10540.89381.2090.4896
DEPI 1.40440.70081.07110.92571.3021.20661.02310.85321.1070.8418
SGAI 0.8167.19780.42850.46840.67641.43991.2711.04610.74461.7075
LVGI 0.85871.4921.14970.79510.86130.94431.17241.12111.16381.2462
TATA -0.0625-0.0711-0.0972-0.0994-0.1284-0.107-0.078-0.1011-0.1839-0.2868
M-score -2.17-3.77-2.87-2.33-2.73-3.21-2.83-3.00-3.82-3.91

Pengrowth Energy Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.7710.97941.13931.25460.97830.58640.50010.5970.7081.5906
GMI 0.93781.11541.14271.19041.08670.73870.68650.63660.69121.1584
AQI 1.06581.0951.06881.02691.02580.63350.51410.4960.55130.8551
SGI 1.15190.92510.87310.79610.80461.21181.22391.17821.06030.498
DEPI 0.6810.82960.94231.11031.22241.09531.03670.9890.8710.8277
SGAI 0.95261.04341.05731.10191.11440.75170.76070.8120.86521.7198
LVGI 1.06881.12111.21341.15261.1041.16381.12721.18011.29621.2462
TATA -0.1008-0.1037-0.1113-0.102-0.0973-0.1874-0.1887-0.2071-0.2992-0.2982
M-score -3.08-3.02-2.97-2.85-3.10-3.83-3.98-4.08-4.53-3.98
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK