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GuruFocus has detected 4 Warning Signs with Progenics Pharmaceuticals Inc $PGNX.
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Progenics Pharmaceuticals Inc (NAS:PGNX)
Beneish M-Score
1.64 (As of Today)

Warning Sign:

Beneish M-Score 1.64 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 1.64 signals that the company is a manipulator.

PGNX' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32   Max: 373.92
Current: 1.64

-5.32
373.92

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals Inc was 373.92. The lowest was -5.32. And the median was -0.53.


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 * 0.1716+0.528 * 1+0.404 * 0.6678+0.892 * 8.0023+0.115 * 0.6256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1605+4.679 * -0.0421-0.327 * 4.4617
=1.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $4.86 Mil.
Revenue was 4.652 + 53.85 + 8.476 + 2.45 = $69.43 Mil.
Gross Profit was 4.652 + 53.85 + 8.476 + 2.45 = $69.43 Mil.
Total Current Assets was $148.10 Mil.
Total Assets was $198.99 Mil.
Property, Plant and Equipment(Net PPE) was $4.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.08 Mil.
Selling, General & Admin. Expense(SGA) was $23.36 Mil.
Total Current Liabilities was $16.36 Mil.
Long-Term Debt was $49.45 Mil.
Net Income was -7.204 + 36.303 + -5.638 + -12.655 = $10.81 Mil.
Non Operating Income was -0.034 + 0 + 0 + 0 = $-0.03 Mil.
Cash Flow from Operations was -8.048 + 38.762 + -3.538 + -7.967 = $19.21 Mil.
Accounts Receivable was $3.54 Mil.
Revenue was 5.095 + 1.396 + 1.937 + 0.248 = $8.68 Mil.
Gross Profit was 5.095 + 1.396 + 1.937 + 0.248 = $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.



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)
=(4.864 / 69.428) / (3.543 / 8.676)
=0.07005819 / 0.40836791
=0.1716

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)
=(8.676 / 8.676) / (69.428 / 69.428)
=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 - (148.101 + 4.76) / 198.986) / (1 - (83.285 + 2.407) / 131.251)
=0.23180023 / 0.34711355
=0.6678

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
=69.428 / 8.676
=8.0023

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))
=(0.565 / (0.565 + 2.407)) / (2.078 / (2.078 + 4.76))
=0.19010767 / 0.30389003
=0.6256

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)
=(23.355 / 69.428) / (18.184 / 8.676)
=0.33639166 / 2.09589673
=0.1605

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)
=((49.453 + 16.357) / 198.986) / ((0 + 9.729) / 131.251)
=0.33072678 / 0.07412515
=4.4617

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
=(10.806 - -0.034 - 19.209) / 198.986
=-0.0421

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 1.64 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 local exchange's currency.

Progenics Pharmaceuticals Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.08510.74927.77821.86820.062327.62060.74160.0027411.8669
GMI 11.00021.00461.02630.97431.03190.96451.00810.992
AQI 1.4860.66960.34811.55460.56941.61755.07380.62741.529
SGI 1.08210.89460.72330.162510.66350.16570.55975.64450.1955
DEPI 0.65240.62270.67371.33530.96541.20741.00071.59190.9257
SGAI 1.15841.15521.20385.59780.0755.03261.82520.17666.0049
LVGI 0.73361.40930.21842.95340.53171.36750.50970.71751.7856
TATA -0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564-0.05790.0078
M-score -2.23-3.634.21-5.324.9320.69-1.730.63373.92

Progenics Pharmaceuticals Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 15.89120.00270.03240.01590.5803411.866963.019262.33630.11180.1716
GMI 0.97371.00811.01111.00380.98470.9920.99360.9971.01361
AQI 0.64950.62740.82820.821.18861.5291.5491.49821.10780.6678
SGI 3.47755.64455.74556.07130.06280.19550.25410.402523.2138.0023
DEPI 1.44581.59191.4731.26911.13250.92570.52160.52920.51890.6256
SGAI 0.29810.17660.18810.204219.4566.00495.04752.71360.05140.1605
LVGI 0.72120.71751.24151.41642.03051.78562.6122.44031.21294.4617
TATA 0.207-0.0579-0.0577-0.063-0.33680.0078-0.0355-0.0313-0.0376-0.0421
M-score 14.510.630.640.80-8.71373.9252.6952.6516.431.64
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