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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.05 (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 -3.10 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -3.05

-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 -2.53.


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 * 0.9783+0.528 * 1.0867+0.404 * 1.0258+0.892 * 0.8046+0.115 * 1.2224
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1144+4.679 * -0.0973-0.327 * 1.104
=-3.10

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $146 Mil.
Revenue was 419.671237853 + 320.036934441 + 247.254725473 + 271.522556391 = $1,258 Mil.
Gross Profit was 261.284170375 + 135.457063712 + 79.7479747975 + 102.537593985 = $579 Mil.
Total Current Assets was $190 Mil.
Total Assets was $5,914 Mil.
Property, Plant and Equipment(Net PPE) was $5,044 Mil.
Depreciation, Depletion and Amortization(DDA) was $495 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $547 Mil.
Long-Term Debt was $1,399 Mil.
Net Income was 47.4071383162 + -8.12557710065 + -104.590459046 + -85.6203007519 = $-151 Mil.
Non Operating Income was -28.6985741531 + 12.7423822715 + -55.1755175518 + -40.037593985 = $-111 Mil.
Cash Flow from Operations was 150.939969122 + 101.015697138 + 164.806480648 + 118.703007519 = $535 Mil.
Accounts Receivable was $186 Mil.
Revenue was 383.268858801 + 423.957322987 + 321.38671875 + 435.454545455 = $1,564 Mil.
Gross Profit was 183.462282398 + 220.46556741 + 135.05859375 + 243.03030303 = $782 Mil.
Total Current Assets was $751 Mil.
Total Assets was $6,527 Mil.
Property, Plant and Equipment(Net PPE) was $5,046 Mil.
Depreciation, Depletion and Amortization(DDA) was $619 Mil.
Selling, General & Admin. Expense(SGA) was $103 Mil.
Total Current Liabilities was $395 Mil.
Long-Term Debt was $1,550 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)
=(146.39905549 / 1258.48545416) / (185.976789168 / 1564.06744599)
=0.11632956 / 0.11890586
=0.9783

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)
=(135.457063712 / 1564.06744599) / (261.284170375 / 1258.48545416)
=0.49998915 / 0.46009813
=1.0867

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 - (190.445917719 + 5044.1376805) / 5913.63182272) / (1 - (750.676982592 + 5045.93810445) / 6527.27272727)
=0.11482761 / 0.11193919
=1.0258

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
=1258.48545416 / 1564.06744599
=0.8046

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))
=(618.87292706 / (618.87292706 + 5045.93810445)) / (495.041828078 / (495.041828078 + 5044.1376805))
=0.10924864 / 0.08937097
=1.2224

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)
=(92.3739060668 / 1258.48545416) / (103.01700153 / 1564.06744599)
=0.07340085 / 0.06586481
=1.1144

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)
=((1399.41876306 + 546.726001271) / 5913.63182272) / ((1550.3868472 + 395.357833656) / 6527.27272727)
=0.32909468 / 0.29809459
=1.104

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
=(-150.929198582 - -111.169303418 - 535.465154426) / 5913.63182272
=-0.0973

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 -3.10 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 1.30641.47781.06231.61141.030.63681.21061.01171.10540.8938
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 1.42-2.67-2.17-3.77-2.87-2.33-2.88-2.95-2.83-3.00

Pengrowth Energy Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9581.22351.17071.17570.91370.7710.97941.13931.25460.9783
GMI 1.34421.25491.26671.1541.04660.93781.11541.14271.19041.0867
AQI 0.43270.44420.74760.77761.06521.06581.0951.06881.02691.0258
SGI 1.08840.95471.06411.04061.07561.15190.92510.87310.79610.8046
DEPI 1.44091.3621.05470.94110.68690.6810.82960.94231.11031.2224
SGAI 1.23771.42661.27311.25451.16390.95261.04341.05731.10191.1144
LVGI 1.0430.97661.17241.12971.03661.06881.12111.21341.15261.104
TATA -0.0771-0.0872-0.0779-0.0897-0.1087-0.1008-0.1037-0.1113-0.102-0.0973
M-score -2.85-2.84-2.69-2.80-3.03-3.08-3.02-2.97-2.85-3.10
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