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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.53 (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 -3.35 suggests that the company is not a manipulator.

PGH' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -3.53

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of Pengrowth Energy Corp was 10000000.00. The lowest was -10000000.00. And the median was -2.71.


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 * 1.8538+0.528 * 1.4443+0.404 * 0.8679+0.892 * 0.3846+0.115 * 1.0802
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8601+4.679 * -0.2463-0.327 * 0.9993
=-3.35

* 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 $78.3 Mil.
Revenue was 125.953616112 + -7.75554521483 + 174.655980644 + 220.301903303 = $513.2 Mil.
Gross Profit was 59.5819346964 + -71.9714595936 + 108.876455467 + 140.013126231 = $236.5 Mil.
Total Current Assets was $238.3 Mil.
Total Assets was $3,257.6 Mil.
Property, Plant and Equipment(Net PPE) was $2,840.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $298.1 Mil.
Selling, General & Admin. Expense(SGA) was $60.6 Mil.
Total Current Liabilities was $624.1 Mil.
Long-Term Debt was $764.5 Mil.
Net Income was -40.3570338724 + -134.481154025 + 18.9021624074 + -341.719536207 = $-497.7 Mil.
Non Operating Income was -10.8330790357 + -5.81665891112 + 17.6924240133 + -72.6318092321 = $-71.6 Mil.
Cash Flow from Operations was 109.780286848 + 78.5636730262 + 88.0084681688 + 99.9051994458 = $376.3 Mil.
Accounts Receivable was $109.9 Mil.
Revenue was 314.262023217 + 136.999595633 + 173.403074972 + 709.764134582 = $1,334.4 Mil.
Gross Profit was 221.996080205 + 17.8730287101 + 72.5154541132 + 575.875823795 = $888.3 Mil.
Total Current Assets was $299.2 Mil.
Total Assets was $4,052.4 Mil.
Property, Plant and Equipment(Net PPE) was $3,496.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $399.8 Mil.
Selling, General & Admin. Expense(SGA) was $84.7 Mil.
Total Current Liabilities was $256.3 Mil.
Long-Term Debt was $1,472.3 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)
=(78.3490997864 / 513.155954845) / (109.905020353 / 1334.4288284)
=0.15268087 / 0.0823611
=1.8538

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)
=(888.260386823 / 1334.4288284) / (236.5000568 / 513.155954845)
=0.66564838 / 0.46087365
=1.4443

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 - (238.327738785 + 2840.25022887) / 3257.55263961) / (1 - (299.185888738 + 3496.68325041) / 4052.38956731)
=0.05494145 / 0.06330103
=0.8679

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
=513.155954845 / 1334.4288284
=0.3846

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))
=(399.825957466 / (399.825957466 + 3496.68325041)) / (298.131897849 / (298.131897849 + 2840.25022887))
=0.10261132 / 0.09499541
=1.0802

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)
=(60.6213929725 / 513.155954845) / (84.7496785257 / 1334.4288284)
=0.11813444 / 0.06351008
=1.8601

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)
=((764.494964907 + 624.122673177) / 3257.55263961) / ((1472.33529323 + 256.294286145) / 4052.38956731)
=0.42627635 / 0.42657043
=0.9993

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
=(-497.655561697 - -71.5891231656 - 376.257627488) / 3257.55263961
=-0.2463

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 -3.35 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.

Pengrowth Energy Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12980.97230.75461.69980.89240.84461.1271.01360.58771.618
GMI 1.09050.71541.33641.22820.91681.04161.0061.11840.73341.1516
AQI 1.6350.83521.06111.07451.00031.58630.43521.0950.63350.8551
SGI 1.06231.61141.030.63511.21851.00791.10540.89381.2090.4896
DEPI 1.40440.70081.07110.92571.17611.18791.15050.85321.1070.8418
SGAI 0.8167.19780.42850.61240.51541.44531.2711.04610.74461.7075
LVGI 0.85871.4921.14970.79510.8810.92321.17241.12111.16381.2462
TATA -0.066-0.0761-0.1115-0.1165-0.0885-0.107-0.078-0.1011-0.1839-0.2868
M-score -2.19-3.79-2.94-2.43-2.70-2.89-2.94-3.00-3.82-3.91

Pengrowth Energy Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.25460.97830.58640.50010.5970.7081.59061.44871.33541.8538
GMI 1.19041.08670.73870.68650.63660.69121.15841.1151.13281.4443
AQI 1.02691.02580.63350.51410.4960.55130.85510.93921.04360.8679
SGI 0.79610.80461.21181.22391.17821.06030.4980.52140.48720.3846
DEPI 1.11031.22241.09531.03670.9890.8710.82770.8970.9391.0802
SGAI 1.10191.11440.75170.76070.8120.86521.71981.52281.53691.8601
LVGI 1.15261.1041.16381.12721.18011.29621.24621.10151.06630.9993
TATA -0.102-0.0973-0.1874-0.1887-0.2071-0.2992-0.2982-0.2814-0.2915-0.2463
M-score -2.85-3.10-3.83-3.98-4.08-4.53-3.98-3.91-4.03-3.35
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