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

Warning Sign:

Beneish M-Score 0.60 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 0.60 signals that the company is a manipulator.

PGNX' s 10-Year Beneish M-Score Range
Min: -7.72   Max: 52.2
Current: 0.6

-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 -1.80.


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 * 0.0324+0.528 * 0.9277+0.404 * 0.8282+0.892 * 5.7455+0.115 * 1.473
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1975+4.679 * -0.0577-0.327 * 1.2415
=0.60

* 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 $0.15 Mil.
Revenue was 0.248 + -0.571 + 41.656 + 1.477 = $42.81 Mil.
Gross Profit was 0.206 + -0.38 + 41.337 + 1.33 = $42.49 Mil.
Total Current Assets was $111.59 Mil.
Total Assets was $150.62 Mil.
Property, Plant and Equipment(Net PPE) was $2.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.53 Mil.
Selling, General & Admin. Expense(SGA) was $15.53 Mil.
Total Current Liabilities was $5.42 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -10.254 + -12.179 + 36.975 + -11.073 = $3.47 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -10.882 + 31.616 + 0.09 + -8.665 = $12.16 Mil.
Accounts Receivable was $0.82 Mil.
Revenue was 1.815 + 2.968 + 0.867 + 1.801 = $7.45 Mil.
Gross Profit was 1.733 + 2.652 + 0.794 + 1.682 = $6.86 Mil.
Total Current Assets was $97.70 Mil.
Total Assets was $141.42 Mil.
Property, Plant and Equipment(Net PPE) was $2.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.81 Mil.
Selling, General & Admin. Expense(SGA) was $13.69 Mil.
Total Current Liabilities was $4.10 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)
=(0.152 / 42.81) / (0.817 / 7.451)
=0.00355057 / 0.10964971
=0.0324

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)
=(-0.38 / 7.451) / (0.206 / 42.81)
=0.920816 / 0.99259519
=0.9277

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 - (111.588 + 2.473) / 150.62) / (1 - (97.698 + 2.28) / 141.424)
=0.24272341 / 0.293062
=0.8282

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
=42.81 / 7.451
=5.7455

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))
=(0.806 / (0.806 + 2.28)) / (0.533 / (0.533 + 2.473))
=0.26117952 / 0.17731204
=1.473

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)
=(15.532 / 42.81) / (13.687 / 7.451)
=0.36281243 / 1.83693464
=0.1975

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 + 5.416) / 150.62) / ((0 + 4.096) / 141.424)
=0.03595804 / 0.02896255
=1.2415

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
=(3.469 - 0 - 12.159) / 150.62
=-0.0577

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 0.60 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 1.08850.22271.15841.15521.20385.59780.0754.86451.77420.1813
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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 27.62063.98880.51210.35670.74160.96822.311715.89120.00670.0324
GMI 1.03191.02510.9750.95191.04761.05281.06470.98980.92810.9277
AQI 1.61757.99525.65775.07825.07380.71290.93810.64950.62740.8282
SGI 0.16570.1661.16451.87210.55970.53040.5083.47755.64455.7455
DEPI 1.20741.33241.04061.02461.00070.95781.36441.44581.59191.473
SGAI 4.86455.49550.82230.48371.77351.68671.8220.29780.18620.1975
LVGI 1.36751.20450.66020.3680.50970.36410.6750.72120.71751.2415
TATA -0.0103-0.0684-0.0404-0.018-0.0564-0.0053-0.02120.207-0.0579-0.0577
M-score 20.721.24-0.96-0.46-1.68-2.96-1.8014.510.590.60
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