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Progenics Pharmaceuticals Inc (NAS:PGNX)
Beneish M-Score
0.76 (As of Today)

Warning Sign:

Beneish M-Score 0.76 higher than -2.22, which implies that it might have manipulated its financial results.

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.

Progenics Pharmaceuticals Inc has a M-score of 0.76 signals that the company is a manipulator.

PGNX' s 10-Year Beneish M-Score Range
Min: -7.72   Max: 52.2
Current: 0.76

-7.72
52.2

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals Inc was 52.20. The lowest was -7.72. And the median was -1.79.


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 Progenics Pharmaceuticals Inc 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 * 0.0159+0.528 * 0.9207+0.404 * 0.82+0.892 * 6.0713+0.115 * 1.2691
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1984+4.679 * -0.063-0.327 * 1.4164
=0.76

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $0.14 Mil.
Revenue was 1.937 + 0.248 + -0.571 + 41.656 = $43.27 Mil.
Gross Profit was 1.759 + 0.206 + -0.38 + 41.337 = $42.92 Mil.
Total Current Assets was $103.35 Mil.
Total Assets was $142.43 Mil.
Property, Plant and Equipment(Net PPE) was $2.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.53 Mil.
Selling, General & Admin. Expense(SGA) was $17.27 Mil.
Total Current Liabilities was $6.63 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -11.697 + -10.254 + -12.179 + 36.975 = $2.85 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -9.011 + -10.882 + 31.616 + 0.09 = $11.81 Mil.
Accounts Receivable was $1.47 Mil.
Revenue was 1.477 + 1.815 + 2.968 + 0.867 = $7.13 Mil.
Gross Profit was 1.33 + 1.733 + 2.652 + 0.794 = $6.51 Mil.
Total Current Assets was $88.76 Mil.
Total Assets was $132.41 Mil.
Property, Plant and Equipment(Net PPE) was $2.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.62 Mil.
Selling, General & Admin. Expense(SGA) was $14.34 Mil.
Total Current Liabilities was $4.35 Mil.
Long-Term Debt was $0.00 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)
=(0.142 / 43.27) / (1.468 / 7.127)
=0.00328172 / 0.20597727
=0.0159

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)
=(0.206 / 7.127) / (1.759 / 43.27)
=0.9132875 / 0.99195748
=0.9207

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 - (103.351 + 2.524) / 142.434) / (1 - (88.758 + 2.203) / 132.405)
=0.25667327 / 0.31300933
=0.82

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
=43.27 / 7.127
=6.0713

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))
=(0.621 / (0.621 + 2.203)) / (0.529 / (0.529 + 2.524))
=0.21990085 / 0.17327219
=1.2691

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)
=(17.274 / 43.27) / (14.34 / 7.127)
=0.39921424 / 2.01206679
=0.1984

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)
=((0 + 6.631) / 142.434) / ((0 + 4.352) / 132.405)
=0.0465549 / 0.03286885
=1.4164

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
=(2.845 - 0 - 11.813) / 142.434
=-0.063

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.

Progenics Pharmaceuticals Inc has a M-score of 0.76 signals that the company is likely to 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.

Progenics Pharmaceuticals Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 2.9840.07011.08510.74927.77821.86820.062327.62060.74160.0067
GMI 1111.00021.00461.02630.97431.03191.04760.9281
AQI 1.12253.33051.4860.66960.34811.55460.56941.61755.07380.6274
SGI 0.99067.36941.08210.89460.72330.162510.66350.16570.55975.6445
DEPI 0.74744.05230.65240.62270.67371.33530.96541.20741.00071.5919
SGAI 1.08850.22271.15841.15521.20385.59780.0754.86451.79930.1788
LVGI 0.97181.2360.73361.40930.21842.95340.53171.36750.50970.7175
TATA -0.4292-0.0744-0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564-0.0579
M-score -2.663.35-2.23-3.634.21-5.324.9320.72-1.680.59

Progenics Pharmaceuticals Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 3.98880.51210.35670.74160.96822.311715.89120.00670.03240.0159
GMI 1.02510.9750.95191.04761.05281.06470.98980.92810.92770.9207
AQI 7.99525.65775.07825.07380.71290.93810.64950.62740.82820.82
SGI 0.1661.16451.87210.55970.53040.5083.47755.64455.74556.0713
DEPI 1.33241.04061.02461.00070.95781.36441.44581.59191.4731.2691
SGAI 5.49550.79610.46711.79931.7131.92150.31480.17880.18950.1984
LVGI 1.20450.66020.3680.50970.36410.6750.72120.71751.24151.4164
TATA -0.0684-0.0404-0.018-0.0564-0.0053-0.02120.207-0.0579-0.0577-0.063
M-score 1.24-0.95-0.45-1.68-2.96-1.8114.510.590.600.76
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