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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-2.82 (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 -2.82 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -2.82

-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 -2.53.


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 * 1.2739+0.528 * 1.1903+0.404 * 1.0269+0.892 * 0.7975+0.115 * 1.1264
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1014+4.679 * -0.1009-0.327 * 1.1526
=-2.82

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $194 Mil.
Revenue was 322.718808194 + 249.954504095 + 264.07678245 + 382.528957529 = $1,219 Mil.
Gross Profit was 136.592178771 + 80.618744313 + 99.7257769653 + 183.108108108 = $500 Mil.
Total Current Assets was $323 Mil.
Total Assets was $6,114 Mil.
Property, Plant and Equipment(Net PPE) was $5,094 Mil.
Depreciation, Depletion and Amortization(DDA) was $509 Mil.
Selling, General & Admin. Expense(SGA) was $93 Mil.
Total Current Liabilities was $667 Mil.
Long-Term Debt was $1,380 Mil.
Net Income was -8.19366852886 + -105.732484076 + -83.2723948812 + -103.571428571 = $-301 Mil.
Non Operating Income was 12.8491620112 + -55.7779799818 + -38.9396709324 + -140.444015444 = $-222 Mil.
Cash Flow from Operations was 101.862197393 + 166.60600546 + 115.447897623 + 154.826254826 = $539 Mil.
Accounts Receivable was $191 Mil.
Revenue was 420.288461538 + 322.963689892 + 434.576612903 + 351.063829787 = $1,529 Mil.
Gross Profit was 218.557692308 + 135.721295388 + 242.540322581 + 149.544072948 = $746 Mil.
Total Current Assets was $277 Mil.
Total Assets was $6,746 Mil.
Property, Plant and Equipment(Net PPE) was $5,720 Mil.
Depreciation, Depletion and Amortization(DDA) was $652 Mil.
Selling, General & Admin. Expense(SGA) was $105 Mil.
Total Current Liabilities was $398 Mil.
Long-Term Debt was $1,562 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)
=(194.320297952 / 1219.27905227) / (191.268269231 / 1528.89259412)
=0.15937311 / 0.12510249
=1.2739

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)
=(80.618744313 / 1528.89259412) / (136.592178771 / 1219.27905227)
=0.48817254 / 0.41011515
=1.1903

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 - (322.905027933 + 5093.94785847) / 6114.15270019) / (1 - (276.975961538 + 5720.23173077) / 6746.47788462)
=0.11404684 / 0.11106094
=1.0269

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
=1219.27905227 / 1528.89259412
=0.7975

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))
=(651.887415344 / (651.887415344 + 5720.23173077)) / (508.85001696 / (508.85001696 + 5093.94785847))
=0.10230308 / 0.0908207
=1.1264

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)
=(92.5023016675 / 1219.27905227) / (105.31172305 / 1528.89259412)
=0.07586639 / 0.06888105
=1.1014

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)
=((1380.16759777 + 666.573556797) / 6114.15270019) / ((1561.77019231 + 397.567307692) / 6746.47788462)
=0.33475467 / 0.29042376
=1.1526

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
=(-300.769976058 - -222.312504347 - 538.742355302) / 6114.15270019
=-0.1009

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 -2.82 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.31060.86771.12980.97230.75461.69520.80860.93471.1271.0136
GMI 1.27430.97421.09050.71541.33641.23160.61461.54961.0061.1184
AQI 10.37671.20631.6350.83521.06111.07451.62930.5670.74761.095
SGI 1.28321.49151.03711.63051.04590.63821.2161.00841.09130.8711
DEPI 1.05030.89041.40440.70081.07110.92571.3021.20661.02310.8532
SGAI 1.43610.84260.8167.19780.42850.46840.67641.43991.2711.0461
LVGI 0.97961.05450.85871.4921.14970.79510.86130.94431.17241.1211
TATA -0.1129-0.119-0.0625-0.0711-0.0972-0.0994-0.1284-0.107-0.078-0.1011
M-score 1.40-2.65-2.19-3.75-2.86-2.33-2.88-2.95-2.85-3.02

Pengrowth Energy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.72150.96561.23861.16381.18310.89830.78170.96261.15641.2739
GMI 1.14821.3461.25591.26851.15561.04610.93891.11581.14381.1903
AQI 0.57260.43270.44420.74760.77761.06521.06581.0951.06881.0269
SGI 1.20961.07010.95041.05681.03821.06981.14440.91710.86530.7975
DEPI 1.1361.44941.37921.0510.94730.67680.68870.81620.95421.1264
SGAI 1.14961.23951.42241.26961.25341.16210.95391.04361.05811.1014
LVGI 0.93181.0430.97661.17241.12971.03661.06881.12111.21341.1526
TATA -0.1028-0.0764-0.0883-0.0779-0.0892-0.1092-0.1008-0.1057-0.1095-0.1009
M-score -3.11-2.86-2.83-2.70-2.79-3.05-3.08-3.05-2.95-2.82
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