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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.92 (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 -4.08 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -3.92

-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 -2.59.


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 * 0.597+0.528 * 0.6366+0.404 * 0.496+0.892 * 1.1782+0.115 * 0.989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.812+4.679 * -0.2071-0.327 * 1.1801
=-4.08

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $136 Mil.
Revenue was 136.999595633 + 173.403074972 + 709.764134582 + 419.671237853 = $1,440 Mil.
Gross Profit was 17.8730287101 + 72.5154541132 + 575.875823795 + 261.284170375 = $928 Mil.
Total Current Assets was $268 Mil.
Total Assets was $4,703 Mil.
Property, Plant and Equipment(Net PPE) was $4,169 Mil.
Depreciation, Depletion and Amortization(DDA) was $426 Mil.
Selling, General & Admin. Expense(SGA) was $89 Mil.
Total Current Liabilities was $340 Mil.
Long-Term Debt was $1,518 Mil.
Net Income was -108.693894056 + -127.199239182 + -438.779049601 + 47.4071383162 = $-627 Mil.
Non Operating Income was -13.1014961585 + -75.2892692978 + -17.9500520291 + -28.6985741531 = $-135 Mil.
Cash Flow from Operations was 78.8515972503 + 81.0746552544 + 170.828997572 + 150.939969122 = $482 Mil.
Accounts Receivable was $193 Mil.
Revenue was 320.036934441 + 247.254725473 + 271.522556391 + 383.268858801 = $1,222 Mil.
Gross Profit was 135.457063712 + 79.7479747975 + 102.537593985 + 183.462282398 = $501 Mil.
Total Current Assets was $320 Mil.
Total Assets was $6,063 Mil.
Property, Plant and Equipment(Net PPE) was $5,052 Mil.
Depreciation, Depletion and Amortization(DDA) was $510 Mil.
Selling, General & Admin. Expense(SGA) was $93 Mil.
Total Current Liabilities was $661 Mil.
Long-Term Debt was $1,369 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)
=(135.543873837 / 1439.83804304) / (192.70544783 / 1222.08307511)
=0.09413828 / 0.15768605
=0.597

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)
=(72.5154541132 / 1222.08307511) / (17.8730287101 / 1439.83804304)
=0.41012344 / 0.64420334
=0.6366

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 - (267.691063486 + 4168.9446017) / 4702.62838658) / (1 - (320.221606648 + 5051.61588181) / 6063.34256694)
=0.05656256 / 0.11404684
=0.496

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
=1439.83804304 / 1222.08307511
=1.1782

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))
=(510.23031464 / (510.23031464 + 5051.61588181)) / (426.237658233 / (426.237658233 + 4168.9446017))
=0.09173758 / 0.09275751
=0.989

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)
=(88.7017041874 / 1439.83804304) / (92.7221071887 / 1222.08307511)
=0.06160533 / 0.07587218
=0.812

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)
=((1517.83259199 + 339.911039224) / 4702.62838658) / ((1368.69806094 + 661.034164358) / 6063.34256694)
=0.39504368 / 0.33475467
=1.1801

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
=(-627.265044523 - -135.039391639 - 481.695219198) / 4702.62838658
=-0.2071

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 -4.08 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.86771.12980.97230.75461.69520.80860.93471.1271.01360.5877
GMI 0.97421.09050.71541.33641.23160.61461.54961.0061.11840.7334
AQI 1.20631.6350.83521.06111.07451.62930.5670.74761.0950.6335
SGI 1.47781.06231.61141.030.63681.21061.01171.10540.89381.209
DEPI 0.89041.40440.70081.07110.92571.3021.20661.02310.85321.107
SGAI 0.84260.8167.19780.42850.46840.67641.43991.2711.04610.7446
LVGI 1.05450.85871.4921.14970.79510.86130.94431.17241.12111.1638
TATA -0.119-0.0625-0.0711-0.0972-0.0994-0.1284-0.107-0.078-0.1011-0.1839
M-score -2.67-2.17-3.77-2.87-2.33-2.88-2.95-2.83-3.00-3.82

Pengrowth Energy Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.17570.91370.7710.97941.13931.25460.97830.58640.50010.597
GMI 1.1541.04660.93781.11541.14271.19041.08670.73870.68650.6366
AQI 0.77761.06521.06581.0951.06881.02691.02580.63350.51410.496
SGI 1.04061.07561.15190.92510.87310.79610.80461.21181.22391.1782
DEPI 0.94110.68690.6810.82960.94231.11031.22241.09531.03670.989
SGAI 1.25451.16390.95261.04341.05731.10191.11440.75170.76070.812
LVGI 1.12971.03661.06881.12111.21341.15261.1041.16381.12721.1801
TATA -0.0897-0.1087-0.1008-0.1037-0.1113-0.102-0.0973-0.1874-0.1887-0.2071
M-score -2.80-3.03-3.08-3.02-2.97-2.85-3.10-3.83-3.98-4.08
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