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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.73 (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 -3.83 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -20.09   Max: 18.54
Current: -3.73

-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 -2.55.


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 * 0.5864+0.528 * 0.7387+0.404 * 0.6335+0.892 * 1.2118+0.115 * 1.0953
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7517+4.679 * -0.1874-0.327 * 1.1638
=-3.83

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $128 Mil.
Revenue was 709.764134582 + 419.671237853 + 320.036934441 + 247.254725473 = $1,697 Mil.
Gross Profit was 575.875823795 + 261.284170375 + 135.457063712 + 79.7479747975 = $1,052 Mil.
Total Current Assets was $388 Mil.
Total Assets was $5,350 Mil.
Property, Plant and Equipment(Net PPE) was $4,576 Mil.
Depreciation, Depletion and Amortization(DDA) was $482 Mil.
Selling, General & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $519 Mil.
Long-Term Debt was $1,462 Mil.
Net Income was -438.779049601 + 47.4071383162 + -8.12557710065 + -104.590459046 = $-504 Mil.
Non Operating Income was -17.9500520291 + -28.6985741531 + 12.7423822715 + -55.1755175518 = $-89 Mil.
Cash Flow from Operations was 170.828997572 + 150.939969122 + 101.015697138 + 164.806480648 = $588 Mil.
Accounts Receivable was $181 Mil.
Revenue was 271.522556391 + 383.268858801 + 423.957322987 + 321.38671875 = $1,400 Mil.
Gross Profit was 102.537593985 + 183.462282398 + 220.46556741 + 135.05859375 = $642 Mil.
Total Current Assets was $602 Mil.
Total Assets was $6,234 Mil.
Property, Plant and Equipment(Net PPE) was $4,922 Mil.
Depreciation, Depletion and Amortization(DDA) was $574 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $527 Mil.
Long-Term Debt was $1,457 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)
=(128.425251474 / 1696.72703235) / (180.733082707 / 1400.13545693)
=0.07568999 / 0.12908257
=0.5864

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)
=(261.284170375 / 1400.13545693) / (575.875823795 / 1696.72703235)
=0.45818712 / 0.62023237
=0.7387

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 - (388.224072147 + 4575.87582379) / 5350.15608741) / (1 - (602.255639098 + 4921.89849624) / 6234.21052632)
=0.07215793 / 0.11389676
=0.6335

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
=1696.72703235 / 1400.13545693
=1.2118

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))
=(573.791283557 / (573.791283557 + 4921.89849624)) / (482.149034178 / (482.149034178 + 4575.87582379))
=0.10440751 / 0.09532358
=1.0953

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)
=(90.2677692367 / 1696.72703235) / (99.094695766 / 1400.13545693)
=0.05320111 / 0.07077508
=0.7517

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)
=((1462.01873049 + 518.730489074) / 5350.15608741) / ((1456.76691729 + 526.503759398) / 6234.21052632)
=0.3702227 / 0.318127
=1.1638

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
=(-504.087947431 - -89.0817614625 - 587.591144479) / 5350.15608741
=-0.1874

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 -3.83 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.86771.12980.97230.75461.69520.80860.93471.1271.01360.5877
GMI 0.97421.09050.71541.33641.23160.61461.54961.0061.11840.7334
AQI 1.20631.6350.83521.06111.07451.62930.5670.74761.0950.6335
SGI 1.47781.06231.61141.030.63681.21061.01171.10540.89381.209
DEPI 0.89041.40440.70081.07110.92571.3021.20661.02310.85321.107
SGAI 0.84260.8167.19780.42850.46840.67641.43991.2711.04610.7446
LVGI 1.05450.85871.4921.14970.79510.86130.94431.17241.12111.1638
TATA -0.119-0.0625-0.0711-0.0972-0.0994-0.1284-0.107-0.078-0.1011-0.1839
M-score -2.67-2.17-3.77-2.87-2.33-2.88-2.95-2.83-3.00-3.82

Pengrowth Energy Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.22351.17071.17570.91370.7710.97941.13931.25460.97830.5864
GMI 1.25491.26671.1541.04660.93781.11541.14271.19041.08670.7387
AQI 0.44420.74760.77761.06521.06581.0951.06881.02691.02580.6335
SGI 0.95471.06411.04061.07561.15190.92510.87310.79610.80461.2118
DEPI 1.3621.05470.94110.68690.6810.82960.94231.11031.22241.0953
SGAI 1.42661.27311.25451.16390.95261.04341.05731.10191.11440.7517
LVGI 0.97661.17241.12971.03661.06881.12111.21341.15261.1041.1638
TATA -0.0872-0.0779-0.0897-0.1087-0.1008-0.1037-0.1113-0.102-0.0973-0.1874
M-score -2.84-2.69-2.80-3.03-3.08-3.02-2.97-2.85-3.10-3.83
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