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Pengrowth Energy Corp (NYSE:PGH)
Beneish M-Score
-3.79 (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 -3.98 suggests that the company is not a manipulator.

PGH' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -3.79

-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 -2.45.


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 * 0.5001+0.528 * 0.6865+0.404 * 0.5141+0.892 * 1.2239+0.115 * 1.0367
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7607+4.679 * -0.1887-0.327 * 1.1272
=-3.98

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $121 Mil.
Revenue was 173.403074972 + 709.764134582 + 419.671237853 + 320.036934441 = $1,623 Mil.
Gross Profit was 72.5154541132 + 575.875823795 + 261.284170375 + 135.457063712 = $1,045 Mil.
Total Current Assets was $342 Mil.
Total Assets was $4,882 Mil.
Property, Plant and Equipment(Net PPE) was $4,251 Mil.
Depreciation, Depletion and Amortization(DDA) was $454 Mil.
Selling, General & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $418 Mil.
Long-Term Debt was $1,465 Mil.
Net Income was -127.199239182 + -438.779049601 + 47.4071383162 + -8.12557710065 = $-527 Mil.
Non Operating Income was -75.2892692978 + -17.9500520291 + -28.6985741531 + 12.7423822715 = $-109 Mil.
Cash Flow from Operations was 81.0746552544 + 170.828997572 + 150.939969122 + 101.015697138 = $504 Mil.
Accounts Receivable was $198 Mil.
Revenue was 247.254725473 + 271.522556391 + 383.268858801 + 423.957322987 = $1,326 Mil.
Gross Profit was 79.7479747975 + 102.537593985 + 183.462282398 + 220.46556741 = $586 Mil.
Total Current Assets was $482 Mil.
Total Assets was $6,033 Mil.
Property, Plant and Equipment(Net PPE) was $4,857 Mil.
Depreciation, Depletion and Amortization(DDA) was $539 Mil.
Selling, General & Admin. Expense(SGA) was $96 Mil.
Total Current Liabilities was $619 Mil.
Long-Term Debt was $1,445 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)
=(121.413853226 / 1622.87538185) / (198.379837984 / 1326.00346365)
=0.07481403 / 0.14960733
=0.5001

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)
=(575.875823795 / 1326.00346365) / (72.5154541132 / 1622.87538185)
=0.44209041 / 0.64400047
=0.6865

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 - (342.209541924 + 4250.91139642) / 4881.99397686) / (1 - (482.088208821 + 4856.52565257) / 6033.03330333)
=0.05917112 / 0.11510287
=0.5141

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
=1622.87538185 / 1326.00346365
=1.2239

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))
=(539.338756273 / (539.338756273 + 4856.52565257)) / (453.588560442 / (453.588560442 + 4250.91139642))
=0.0999541 / 0.09641589
=1.0367

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)
=(89.546170686 / 1622.87538185) / (96.1816212554 / 1326.00346365)
=0.05517748 / 0.07253497
=0.7607

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)
=((1464.5744175 + 417.895070534) / 4881.99397686) / ((1444.82448245 + 618.99189919) / 6033.03330333)
=0.38559439 / 0.34208603
=1.1272

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
=(-526.696727568 - -109.195513209 - 503.859319086) / 4881.99397686
=-0.1887

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 -3.98 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 0.86771.12980.97230.75461.69980.89240.84461.02091.1190.5877
GMI 0.97421.09050.71541.33641.22820.91680.68311.58181.08440.7334
AQI 1.20631.6350.83521.06111.07451.00031.58630.43521.0950.6335
SGI 1.47781.06231.61141.030.63511.21851.00791.10540.89381.209
DEPI 0.89041.40440.70081.07110.92571.17611.18791.15050.85321.107
SGAI 0.84260.8167.19780.42850.61240.51541.44530.97861.35870.7446
LVGI 1.05450.85871.4921.14970.79510.8810.92321.17241.12121.1638
TATA -0.119-0.0625-0.0711-0.0972-0.0994-0.0745-0.107-0.078-0.1011-0.1839
M-score -2.67-2.17-3.77-2.87-2.35-2.63-3.08-2.69-2.97-3.82

Pengrowth Energy Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.06081.17340.90940.76541.08111.13921.25450.97820.58640.5001
GMI 1.10521.22711.44411.06171.37381.27461.16921.07720.73870.6865
AQI 0.43520.77761.06521.06581.0951.06881.02691.02580.63350.5141
SGI 1.06381.04261.08071.16030.92510.87320.79610.80471.21181.2239
DEPI 1.18570.94110.68690.6810.82960.94221.11031.22241.09531.0367
SGAI 0.97961.10781.15281.07391.35651.28211.26141.19470.75170.7607
LVGI 1.17241.12971.03661.06881.12121.21341.15261.1041.16381.1272
TATA -0.0779-0.0897-0.1087-0.1008-0.1037-0.1113-0.102-0.0973-0.1874-0.1887
M-score -2.94-2.74-2.81-3.04-2.84-2.94-2.89-3.12-3.83-3.98
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