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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-2.94 (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 -3.05 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -20.09   Max: 18.54
Current: -2.94

-20.09
18.54

During the past 13 years, the highest Beneish M-Score of Pengrowth Energy Corp was 18.54. The lowest was -20.09. And the median was -2.36.


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 * 0.9626+0.528 * 1.1157+0.404 * 1.095+0.892 * 0.9172+0.115 * 0.8161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0432+4.679 * -0.1057-0.327 * 1.1211
=-3.05

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $176 Mil.
Revenue was 264.07678245 + 382.528957529 + 420.389423077 + 322.889106968 = $1,390 Mil.
Gross Profit was 99.7257769653 + 183.108108108 + 218.676923077 + 135.634936212 = $637 Mil.
Total Current Assets was $586 Mil.
Total Assets was $6,063 Mil.
Property, Plant and Equipment(Net PPE) was $4,787 Mil.
Depreciation, Depletion and Amortization(DDA) was $570 Mil.
Selling, General & Admin. Expense(SGA) was $98 Mil.
Total Current Liabilities was $512 Mil.
Long-Term Debt was $1,417 Mil.
Net Income was -83.2723948812 + -103.571428571 + -51.3971153846 + -63.8390578999 = $-302 Mil.
Non Operating Income was -38.9396709324 + -140.444015444 + -78.9634615385 + -12.5495583906 = $-271 Mil.
Cash Flow from Operations was 115.447897623 + 154.826254826 + 200.755769231 + 138.609421001 = $610 Mil.
Accounts Receivable was $199 Mil.
Revenue was 434.576612903 + 351.063829787 + 413.231755424 + 316.542799597 = $1,515 Mil.
Gross Profit was 242.540322581 + 149.544072948 + 241.50887574 + 141.498489426 = $775 Mil.
Total Current Assets was $535 Mil.
Total Assets was $7,530 Mil.
Property, Plant and Equipment(Net PPE) was $6,212 Mil.
Depreciation, Depletion and Amortization(DDA) was $590 Mil.
Selling, General & Admin. Expense(SGA) was $103 Mil.
Total Current Liabilities was $405 Mil.
Long-Term Debt was $1,732 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)
=(175.776965265 / 1389.88427002) / (199.092741935 / 1515.41499771)
=0.12646878 / 0.13137836
=0.9626

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)
=(183.108108108 / 1515.41499771) / (99.7257769653 / 1389.88427002)
=0.51147162 / 0.4584164
=1.1157

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 - (585.740402194 + 4786.92870201) / 6063.25411335) / (1 - (534.677419355 + 6212.19758065) / 7530.14112903)
=0.11389676 / 0.10401746
=1.095

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
=1389.88427002 / 1515.41499771
=0.9172

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))
=(590.289416578 / (590.289416578 + 6212.19758065)) / (569.518025889 / (569.518025889 + 4786.92870201))
=0.08677553 / 0.10632385
=0.8161

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)
=(98.2933410593 / 1389.88427002) / (102.732751272 / 1515.41499771)
=0.07072052 / 0.06779183
=1.0432

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)
=((1416.8190128 + 512.065813528) / 6063.25411335) / ((1731.85483871 + 404.838709677) / 7530.14112903)
=0.318127 / 0.28375213
=1.1211

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
=(-302.079996737 - -270.896706305 - 609.639342681) / 6063.25411335
=-0.1057

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 -3.05 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.18830.89120.72150.96561.23861.16381.18310.89830.78170.9626
GMI 0.8861.07211.14821.3461.25591.26851.15571.04610.93891.1157
AQI 1.58140.5670.57260.43270.44420.74760.77761.06521.06581.095
SGI 0.94831.05771.20961.07010.95041.05681.03811.06991.14440.9172
DEPI 0.98561.15721.1361.44941.37921.0510.94730.67680.68860.8161
SGAI 1.40171.44481.14961.23951.42241.26961.25331.16170.95351.0432
LVGI 1.11420.94430.93181.0430.97661.17241.12971.03661.06881.1211
TATA -0.1263-0.1093-0.1028-0.0764-0.0883-0.0779-0.0892-0.1092-0.1008-0.1057
M-score -2.88-3.22-3.11-2.86-2.83-2.70-2.79-3.05-3.08-3.05
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