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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-2.87 (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 -2.95 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -2.87

-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 -2.49.


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 * 1.1563+0.528 * 1.1436+0.404 * 1.0688+0.892 * 0.8654+0.115 * 0.9541
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0577+4.679 * -0.1094-0.327 * 1.2134
=-2.95

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $201 Mil.
Revenue was 249.954504095 + 264.07678245 + 382.528957529 + 420.389423077 = $1,317 Mil.
Gross Profit was 80.618744313 + 99.7257769653 + 183.108108108 + 218.676923077 = $582 Mil.
Total Current Assets was $487 Mil.
Total Assets was $6,099 Mil.
Property, Plant and Equipment(Net PPE) was $4,910 Mil.
Depreciation, Depletion and Amortization(DDA) was $536 Mil.
Selling, General & Admin. Expense(SGA) was $96 Mil.
Total Current Liabilities was $626 Mil.
Long-Term Debt was $1,461 Mil.
Net Income was -105.732484076 + -83.2723948812 + -103.571428571 + -51.3971153846 = $-344 Mil.
Non Operating Income was -55.7779799818 + -38.9396709324 + -140.444015444 + -78.9634615385 = $-314 Mil.
Cash Flow from Operations was 166.60600546 + 115.447897623 + 154.826254826 + 200.755769231 = $638 Mil.
Accounts Receivable was $200 Mil.
Revenue was 322.963689892 + 434.576612903 + 351.063829787 + 413.231755424 = $1,522 Mil.
Gross Profit was 135.721295388 + 242.540322581 + 149.544072948 + 241.50887574 = $769 Mil.
Total Current Assets was $296 Mil.
Total Assets was $7,136 Mil.
Property, Plant and Equipment(Net PPE) was $6,071 Mil.
Depreciation, Depletion and Amortization(DDA) was $629 Mil.
Selling, General & Admin. Expense(SGA) was $104 Mil.
Total Current Liabilities was $463 Mil.
Long-Term Debt was $1,549 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)
=(200.545950864 / 1316.94966715) / (200.417075564 / 1521.83588801)
=0.15228065 / 0.13169428
=1.1563

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)
=(99.7257769653 / 1521.83588801) / (80.618744313 / 1316.94966715)
=0.50551743 / 0.4420287
=1.1436

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 - (487.352138308 + 4909.55414013) / 6098.90809827) / (1 - (296.033366045 + 6071.46319921) / 7135.95878312)
=0.11510287 / 0.10768871
=1.0688

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
=1316.94966715 / 1521.83588801
=0.8654

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))
=(628.822819683 / (628.822819683 + 6071.46319921)) / (535.632456797 / (535.632456797 + 4909.55414013))
=0.09385015 / 0.09836806
=0.9541

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)
=(95.5266033435 / 1316.94966715) / (104.363498198 / 1521.83588801)
=0.07253626 / 0.06857737
=1.0577

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)
=((1460.60054595 + 625.750682439) / 6098.90809827) / ((1548.71736997 + 463.070657507) / 7135.95878312)
=0.34208603 / 0.2819226
=1.2134

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
=(-343.973422914 - -314.125127897 - 637.63592714) / 6098.90809827
=-0.1094

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 -2.95 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.89120.72150.96561.23861.16381.18310.89830.78170.96261.1563
GMI 1.07211.14821.3461.25591.26851.15561.0460.93881.11561.1436
AQI 0.5670.57260.43270.44420.74760.77761.06521.06581.0951.0688
SGI 1.05771.20961.07010.95041.05681.03821.06991.14440.91720.8654
DEPI 1.15721.1361.44941.37921.0510.94730.67680.68860.81610.9541
SGAI 1.44481.14961.23951.42241.26961.25341.16180.95361.04331.0577
LVGI 0.94430.93181.0430.97661.17241.12971.03661.06881.12111.2134
TATA -0.1093-0.1028-0.0764-0.0883-0.0779-0.0892-0.1092-0.1007-0.1057-0.1094
M-score -3.22-3.11-2.86-2.83-2.70-2.79-3.05-3.08-3.05-2.95
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