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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.98 (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 -3.91 suggests that the company is not a manipulator.

PGH' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -3.98

-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 * 1.4487+0.528 * 1.115+0.404 * 0.9392+0.892 * 0.5214+0.115 * 0.897
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5228+4.679 * -0.2814-0.327 * 1.1015
=-3.91

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $91.7 Mil.
Revenue was 174.655980644 + 220.301903303 + 314.262023217 + 136.999595633 = $846.2 Mil.
Gross Profit was 108.876455467 + 140.013126231 + 221.996080205 + 17.8730287101 = $488.8 Mil.
Total Current Assets was $286.0 Mil.
Total Assets was $3,352.5 Mil.
Property, Plant and Equipment(Net PPE) was $2,880.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $346.9 Mil.
Selling, General & Admin. Expense(SGA) was $71.1 Mil.
Total Current Liabilities was $279.1 Mil.
Long-Term Debt was $1,144.9 Mil.
Net Income was 18.9021624074 + -341.719536207 + -248.454696216 + -108.693894056 = $-680.0 Mil.
Non Operating Income was 17.6924240133 + -72.6318092321 + -34.4489672848 + -13.1014961585 = $-102.5 Mil.
Cash Flow from Operations was 88.0084681688 + 99.9051994458 + 99.276345545 + 78.8515972503 = $366.0 Mil.
Accounts Receivable was $121.4 Mil.
Revenue was 173.403074972 + 709.764134582 + 419.671237853 + 320.036934441 = $1,622.9 Mil.
Gross Profit was 72.5154541132 + 575.875823795 + 261.284170375 + 135.457063712 = $1,045.1 Mil.
Total Current Assets was $342.2 Mil.
Total Assets was $4,882.0 Mil.
Property, Plant and Equipment(Net PPE) was $4,250.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $453.6 Mil.
Selling, General & Admin. Expense(SGA) was $89.5 Mil.
Total Current Liabilities was $417.9 Mil.
Long-Term Debt was $1,464.6 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)
=(91.7132920006 / 846.219502798) / (121.413853226 / 1622.87538185)
=0.10838003 / 0.07481403
=1.4487

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)
=(1045.13251199 / 1622.87538185) / (488.758690612 / 846.219502798)
=0.64400047 / 0.57757909
=1.115

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 - (286.027521548 + 2880.16029034) / 3352.48752457) / (1 - (342.209541924 + 4250.91139642) / 4881.99397686)
=0.05557059 / 0.05917112
=0.9392

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
=846.219502798 / 1622.87538185
=0.5214

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))
=(453.588560442 / (453.588560442 + 4250.91139642)) / (346.880442424 / (346.880442424 + 2880.16029034))
=0.09641589 / 0.10749181
=0.897

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)
=(71.1017590189 / 846.219502798) / (89.546170686 / 1622.87538185)
=0.08402283 / 0.05517748
=1.5228

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)
=((1144.86617269 + 279.071525783) / 3352.48752457) / ((1464.5744175 + 417.895070534) / 4881.99397686)
=0.42474064 / 0.38559439
=1.1015

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
=(-679.965964071 - -102.489848662 - 366.04161041) / 3352.48752457
=-0.2814

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 -3.91 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 1.12980.97230.94171.36210.80340.93821.12711.01350.58771.618
GMI 1.09050.71541.07091.53270.91681.04161.03751.08440.73341.1516
AQI 1.6350.83521.06111.07451.62930.5670.74761.0950.63350.8551
SGI 1.06231.61140.82540.79251.21851.00791.10540.89381.2090.4896
DEPI 1.40440.70081.02820.96441.08991.44141.02310.85321.1070.8418
SGAI 0.8167.19780.53470.49080.51541.44530.97861.35870.74461.7075
LVGI 0.85871.4921.14970.79510.86130.94431.17241.12111.16381.2462
TATA -0.066-0.0761-0.097-0.1165-0.0854-0.107-0.078-0.1011-0.1839-0.2868
M-score -2.19-3.79-3.05-2.42-2.52-3.19-2.77-3.07-3.82-3.91

Pengrowth Energy Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.97941.13931.25460.97830.58640.50010.5970.7081.59061.4487
GMI 1.11541.14271.19041.08670.73870.68650.63660.69121.15841.115
AQI 1.0951.06881.02691.02580.63350.51410.4960.55130.85510.9392
SGI 0.92510.87310.79610.80461.21181.22391.17821.06030.4980.5214
DEPI 0.82960.94231.11031.22241.09531.03670.9890.8710.82770.897
SGAI 1.04341.05731.10191.11440.75170.76070.8120.86521.71981.5228
LVGI 1.12111.21341.15261.1041.16381.12721.18011.29621.24621.1015
TATA -0.1037-0.1121-0.1028-0.0981-0.1883-0.1887-0.2071-0.2992-0.2982-0.2814
M-score -3.02-2.97-2.85-3.11-3.84-3.98-4.08-4.53-3.98-3.91
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