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

Warning Sign:

Beneish M-Score 371.04 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 371.04 signals that the company is a manipulator.

PGNX' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32   Max: 371.04
Current: 371.04

-5.32
371.04

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals Inc was 371.04. The lowest was -5.32. And the median was -0.90.


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 * 408.7301+0.528 * 1+0.404 * 1.529+0.892 * 0.1955+0.115 * 0.9257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 6.0049+4.679 * 0.0078-0.327 * 1.7856
=371.04

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $3.52 Mil.
Revenue was 5.095 + 1.396 + 1.937 + 0.248 = $8.68 Mil.
Gross Profit was 5.438 + 1.273 + 1.759 + 0.206 = $8.68 Mil.
Total Current Assets was $83.29 Mil.
Total Assets was $131.25 Mil.
Property, Plant and Equipment(Net PPE) was $2.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.57 Mil.
Selling, General & Admin. Expense(SGA) was $18.18 Mil.
Total Current Liabilities was $9.73 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -7.147 + -10.014 + -11.697 + -10.254 = $-39.11 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -10.486 + -9.758 + -9.011 + -10.882 = $-40.14 Mil.
Accounts Receivable was $0.04 Mil.
Revenue was -0.571 + 41.656 + 1.477 + 1.815 = $44.38 Mil.
Gross Profit was -0.173 + 41.487 + 1.33 + 1.733 = $44.38 Mil.
Total Current Assets was $121.93 Mil.
Total Assets was $161.04 Mil.
Property, Plant and Equipment(Net PPE) was $2.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.55 Mil.
Selling, General & Admin. Expense(SGA) was $15.49 Mil.
Total Current Liabilities was $6.69 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)
=(3.516 / 8.676) / (0.044 / 44.377)
=0.40525588 / 0.0009915
=408.7301

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)
=(1.273 / 44.377) / (5.438 / 8.676)
=1 / 1
=1

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 - (83.285 + 2.407) / 131.251) / (1 - (121.926 + 2.552) / 161.037)
=0.34711355 / 0.22702236
=1.529

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
=8.676 / 44.377
=0.1955

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))
=(0.545 / (0.545 + 2.552)) / (0.565 / (0.565 + 2.407))
=0.17597675 / 0.19010767
=0.9257

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)
=(18.184 / 8.676) / (15.489 / 44.377)
=2.09589673 / 0.34903216
=6.0049

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 + 9.729) / 131.251) / ((0 + 6.685) / 161.037)
=0.07412515 / 0.0415122
=1.7856

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
=(-39.112 - 0 - -40.137) / 131.251
=0.0078

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 371.04 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.07011.08510.74927.77821.86820.062327.62060.74160.0027408.7282
GMI 111.00021.00461.02630.97431.03190.964511
AQI 3.33051.4860.66960.34811.55460.56941.61755.07380.62741.529
SGI 7.36941.08210.89460.72330.162510.66350.16570.55975.64450.1955
DEPI 4.05230.65240.62270.67371.33530.96541.20741.00071.59190.9257
SGAI 0.22271.15841.15521.20385.59780.0755.03261.82520.17666.0049
LVGI 1.2360.73361.40930.21842.95340.53171.36750.50970.71751.7856
TATA -0.0744-0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564-0.05790.0078
M-score 3.35-2.23-3.634.21-5.324.9320.69-1.730.63371.04

Progenics Pharmaceuticals Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.35670.74160.96822.311715.89120.00270.03240.01590.5803408.7282
GMI 0.95190.96450.9650.97160.973711.00361.00060.98021
AQI 5.07825.07380.71290.93810.64950.62740.82820.821.18861.529
SGI 1.87210.55970.53040.5083.47755.64455.74556.07130.06280.1955
DEPI 1.02461.00070.95781.36441.44581.59191.4731.26911.13250.9257
SGAI 0.50091.82451.74451.83060.29810.17660.18660.201319.04326.0049
LVGI 0.3680.50970.36410.6750.72120.71751.24151.41642.03051.7856
TATA -0.018-0.0564-0.0053-0.02120.207-0.0579-0.0577-0.063-0.33680.0078
M-score -0.46-1.73-3.01-1.8514.510.630.640.80-8.64371.04
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