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Progenics Pharmaceuticals, Inc. (NAS:PGNX)
Beneish M-Score
-1.68 (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.

Progenics Pharmaceuticals, Inc. has a M-score of -1.68 signals that the company is a manipulator.

PGNX' s 10-Year Beneish M-Score Range
Min: -5.32   Max: 20.72
Current: -1.68

-5.32
20.72

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals, Inc. was 20.72. The lowest was -5.32. And the median was -1.68.


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 * 0.7416+0.528 * 1.0476+0.404 * 5.0738+0.892 * 0.5597+0.115 * 1.0007
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7993+4.679 * -0.0564-0.327 * 0.5097
=-1.68

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2.88 Mil.
Revenue was 2.968 + 0.867 + 1.801 + 2.226 = $7.86 Mil.
Gross Profit was 2.652 + 0.794 + 1.682 + 2.11 = $7.24 Mil.
Total Current Assets was $70.68 Mil.
Total Assets was $114.54 Mil.
Property, Plant and Equipment(Net PPE) was $2.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.94 Mil.
Selling, General & Admin. Expense(SGA) was $14.81 Mil.
Total Current Liabilities was $6.63 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -8.551 + -10.5 + -12.263 + -11.258 = $-42.57 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -9.697 + -8.947 + -11.912 + -5.551 = $-36.11 Mil.
Accounts Receivable was $6.94 Mil.
Revenue was 8.885 + 1.117 + 1.82 + 2.226 = $14.05 Mil.
Gross Profit was 8.806 + 1.044 + 1.658 + 2.041 = $13.55 Mil.
Total Current Assets was $67.47 Mil.
Total Assets was $76.31 Mil.
Property, Plant and Equipment(Net PPE) was $3.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.32 Mil.
Selling, General & Admin. Expense(SGA) was $14.71 Mil.
Total Current Liabilities was $8.66 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)
=(2.879 / 7.862) / (6.937 / 14.048)
=0.36619181 / 0.49380695
=0.7416

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)
=(0.794 / 14.048) / (2.652 / 7.862)
=0.96447893 / 0.92063088
=1.0476

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 - (70.682 + 2.413) / 114.541) / (1 - (67.467 + 3.399) / 76.308)
=0.36184423 / 0.07131624
=5.0738

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
=7.862 / 14.048
=0.5597

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))
=(1.324 / (1.324 + 3.399)) / (0.939 / (0.939 + 2.413))
=0.2803303 / 0.28013126
=1.0007

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)
=(14.809 / 7.862) / (14.706 / 14.048)
=1.8836174 / 1.04683941
=1.7993

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 + 6.627) / 114.541) / ((0 + 8.662) / 76.308)
=0.05785701 / 0.11351366
=0.5097

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
=(-42.572 - 0 - -36.107) / 114.541
=-0.0564

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 -1.68 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.08712.9840.07011.08510.74927.77821.86820.062327.62060.7416
GMI 11111.00021.00461.02630.97431.03191.0476
AQI 0.36821.12253.33051.4860.66960.34811.55460.56941.61755.0738
SGI 1.28350.99067.36941.08210.89460.72330.162510.66350.16570.5597
DEPI 0.91270.74744.05230.65240.62270.67371.33530.96541.20741.0007
SGAI 1.22081.08850.22271.15841.15521.20385.59780.0754.86451.7993
LVGI 2.73010.97181.2360.73361.40930.21842.95340.53171.36750.5097
TATA -0.0795-0.4292-0.0744-0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564
M-score -3.39-2.663.35-2.23-3.634.21-5.324.9320.72-1.68

Progenics Pharmaceuticals, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.15190.06230.34582.5795.175727.62063.98880.51210.35670.7416
GMI 0.98990.97430.97941.05151.07671.03191.02510.9750.95191.0476
AQI 0.64890.56941.36131.54941.68021.61757.99525.65775.07825.0738
SGI 3.693110.66359.5990.14890.08680.16570.1661.16451.87210.5597
DEPI 1.12730.96540.9560.97971.0961.20741.33241.04061.02461.0007
SGAI 0.23010.0750.08115.11029.33464.86455.49550.79610.46711.7993
LVGI 0.90560.53170.83761.13181.67291.36751.20450.66020.3680.5097
TATA -0.1468-0.09990.8239-0.1735-0.1691-0.0103-0.0684-0.0404-0.018-0.0564
M-score -1.514.938.78-3.10-1.5720.721.24-0.95-0.45-1.68
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