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

Warning Sign:

Beneish M-Score 52.68 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 52.68 signals that the company is a manipulator.

PGNX' s Beneish M-Score Range Over the Past 10 Years
Min: -8.66   Max: 371.03
Current: 52.68

-8.66
371.03

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals Inc was 371.03. The lowest was -8.66. And the median was -1.76.


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 * 63.0193+0.528 * 0.9971+0.404 * 1.549+0.892 * 0.2541+0.115 * 0.5216
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 5.0803+4.679 * -0.0355-0.327 * 2.612
=52.68

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2.43 Mil.
Revenue was 2.45 + 5.095 + 1.396 + 1.937 = $10.88 Mil.
Gross Profit was 2.45 + 5.438 + 1.273 + 1.759 = $10.92 Mil.
Total Current Assets was $73.23 Mil.
Total Assets was $121.04 Mil.
Property, Plant and Equipment(Net PPE) was $2.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.18 Mil.
Selling, General & Admin. Expense(SGA) was $20.41 Mil.
Total Current Liabilities was $11.37 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -12.655 + -7.147 + -10.014 + -11.697 = $-41.51 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -7.967 + -10.486 + -9.758 + -9.011 = $-37.22 Mil.
Accounts Receivable was $0.15 Mil.
Revenue was 0.248 + -0.571 + 41.656 + 1.477 = $42.81 Mil.
Gross Profit was 0.206 + -0.173 + 41.487 + 1.33 = $42.85 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 $15.81 Mil.
Total Current Liabilities was $5.42 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)
=(2.434 / 10.878) / (0.152 / 42.81)
=0.22375437 / 0.00355057
=63.0193

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)
=(5.438 / 42.81) / (2.45 / 10.878)
=1.00093436 / 1.003861
=0.9971

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 - (73.231 + 2.299) / 121.037) / (1 - (111.588 + 2.473) / 150.62)
=0.37597594 / 0.24272341
=1.549

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
=10.878 / 42.81
=0.2541

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))
=(0.533 / (0.533 + 2.473)) / (1.184 / (1.184 + 2.299))
=0.17731204 / 0.33993684
=0.5216

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)
=(20.408 / 10.878) / (15.809 / 42.81)
=1.87608016 / 0.36928288
=5.0803

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 + 11.368) / 121.037) / ((0 + 5.416) / 150.62)
=0.09392169 / 0.03595804
=2.612

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
=(-41.513 - 0 - -37.222) / 121.037
=-0.0355

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 52.68 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.07011.08510.74927.77821.86820.062327.62060.74160.0027408.7282
GMI 111.00021.00461.02630.97431.03191.04760.92810.992
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 4.05230.74420.54580.67371.33530.96541.20741.00071.59190.9257
SGAI 0.22271.15841.15521.20385.59780.0754.86451.79930.17886.2239
LVGI 1.2360.73361.40930.21842.95340.53171.36750.50970.71751.7856
TATA -0.0751-0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564-0.05790.0078
M-score 3.34-2.22-3.644.21-5.324.9320.72-1.680.59370.99

Progenics Pharmaceuticals Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.74160.96822.311715.89120.00270.03240.01590.5803408.728263.0192
GMI 0.96450.9650.97160.973711.00361.00060.980210.9971
AQI 5.07380.71290.93810.64950.62740.82820.821.18861.5291.549
SGI 0.55970.53040.5083.47755.64455.74556.07130.06280.19550.2541
DEPI 1.00070.95781.36441.44581.59191.4731.26911.13250.92570.5216
SGAI 1.82451.74451.83060.29810.17660.18810.202819.18016.04855.0803
LVGI 0.50970.36410.6750.72120.71751.24151.41642.03051.78562.612
TATA -0.0564-0.0053-0.02120.207-0.0579-0.0577-0.063-0.33680.0078-0.0355
M-score -1.73-3.01-1.8514.510.630.640.80-8.66371.0352.68
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