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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-4.13 (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 -4.03 suggests that the company is not a manipulator.

PGH' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -4.13

-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 -2.72.


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 * 1.3354+0.528 * 1.1328+0.404 * 1.0436+0.892 * 0.4872+0.115 * 0.939
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5369+4.679 * -0.2915-0.327 * 1.0663
=-4.03

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $88.2 Mil.
Revenue was -7.75554521483 + 174.655980644 + 220.301903303 + 314.262023217 = $701.5 Mil.
Gross Profit was -71.9714595936 + 108.876455467 + 140.013126231 + 221.996080205 = $398.9 Mil.
Total Current Assets was $205.9 Mil.
Total Assets was $3,349.2 Mil.
Property, Plant and Equipment(Net PPE) was $2,945.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $322.9 Mil.
Selling, General & Admin. Expense(SGA) was $66.4 Mil.
Total Current Liabilities was $244.1 Mil.
Long-Term Debt was $1,166.7 Mil.
Net Income was -134.481154025 + 18.9021624074 + -341.719536207 + -248.454696216 = $-705.8 Mil.
Non Operating Income was -5.81665891112 + 17.6924240133 + -72.6318092321 + -34.4489672848 = $-95.2 Mil.
Cash Flow from Operations was 78.5636730262 + 88.0084681688 + 99.9051994458 + 99.276345545 = $365.8 Mil.
Accounts Receivable was $135.5 Mil.
Revenue was 136.999595633 + 173.403074972 + 709.764134582 + 419.671237853 = $1,439.8 Mil.
Gross Profit was 17.8730287101 + 72.5154541132 + 575.875823795 + 261.284170375 = $927.5 Mil.
Total Current Assets was $267.7 Mil.
Total Assets was $4,702.6 Mil.
Property, Plant and Equipment(Net PPE) was $4,168.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $426.2 Mil.
Selling, General & Admin. Expense(SGA) was $88.7 Mil.
Total Current Liabilities was $339.9 Mil.
Long-Term Debt was $1,517.8 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)
=(88.1805490926 / 701.46436195) / (135.543873837 / 1439.83804304)
=0.12570924 / 0.09413828
=1.3354

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)
=(927.548476993 / 1439.83804304) / (398.914202309 / 701.46436195)
=0.64420334 / 0.56868777
=1.1328

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 - (205.909725454 + 2945.55607259) / 3349.15464557) / (1 - (267.691063486 + 4168.9446017) / 4702.62838658)
=0.05902649 / 0.05656256
=1.0436

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
=701.46436195 / 1439.83804304
=0.4872

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))
=(426.237658233 / (426.237658233 + 4168.9446017)) / (322.856378846 / (322.856378846 + 2945.55607259))
=0.09275751 / 0.09878079
=0.939

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)
=(66.4156409556 / 701.46436195) / (88.7017041874 / 1439.83804304)
=0.09468142 / 0.06160533
=1.5369

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)
=((1166.74422212 + 244.067007911) / 3349.15464557) / ((1517.83259199 + 339.911039224) / 4702.62838658)
=0.42124398 / 0.39504368
=1.0663

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
=(-705.75322404 - -95.2050114147 - 365.753686186) / 3349.15464557
=-0.2915

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 -4.03 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 1.12980.97230.75461.69520.80860.93471.1271.01360.58771.618
GMI 1.09050.71541.33641.23160.91091.04551.0061.11840.73341.1516
AQI 1.6350.83521.06111.07451.62930.5670.74761.0950.63350.8551
SGI 1.06231.61141.030.63681.21061.01171.10540.89381.2090.4896
DEPI 1.40440.70081.07110.92571.3021.20661.02310.85321.1070.8418
SGAI 0.8167.19780.42850.46840.67641.43991.2711.04610.74461.7075
LVGI 0.85871.4921.14970.79510.86130.94431.17241.12111.16381.2462
TATA -0.066-0.0761-0.1115-0.1165-0.1284-0.107-0.078-0.1011-0.1839-0.2868
M-score -2.19-3.79-2.94-2.41-2.73-3.21-2.83-3.00-3.82-3.91

Pengrowth Energy Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.13931.25460.97830.58640.50010.5970.7081.59061.44871.3354
GMI 1.14271.19041.08670.73870.68650.63660.69121.15841.1151.1328
AQI 1.06881.02691.02580.63350.51410.4960.55130.85510.93921.0436
SGI 0.87310.79610.80461.21181.22391.17821.06030.4980.52140.4872
DEPI 0.94231.11031.22241.09531.03670.9890.8710.82770.8970.939
SGAI 1.05731.10191.11440.75170.76070.8120.86521.71981.52281.5369
LVGI 1.21341.15261.1041.16381.12721.18011.29621.24621.10151.0663
TATA -0.1121-0.1028-0.0981-0.1883-0.1887-0.2071-0.2992-0.2982-0.2814-0.2915
M-score -2.97-2.85-3.11-3.84-3.98-4.08-4.53-3.98-3.91-4.03
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