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

Warning Sign:

Beneish M-Score 14.51 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 14.51 signals that the company is a manipulator.

PGNX' s 10-Year Beneish M-Score Range
Min: -7.72   Max: 52.2
Current: 14.51

-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 -1.84.


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 * 15.8912+0.528 * 0.9898+0.404 * 0.6495+0.892 * 3.4775+0.115 * 1.4458
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3118+4.679 * 0.207-0.327 * 0.7212
=14.51

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $41.67 Mil.
Revenue was 41.656 + 1.477 + 1.815 + 2.968 = $47.92 Mil.
Gross Profit was 41.337 + 1.33 + 1.733 + 2.652 = $47.05 Mil.
Total Current Assets was $131.10 Mil.
Total Assets was $172.08 Mil.
Property, Plant and Equipment(Net PPE) was $2.32 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.58 Mil.
Selling, General & Admin. Expense(SGA) was $15.50 Mil.
Total Current Liabilities was $6.15 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 36.975 + -11.073 + -9.313 + -8.551 = $8.04 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.09 + -8.665 + -9.315 + -9.697 = $-27.59 Mil.
Accounts Receivable was $0.75 Mil.
Revenue was 0.867 + 1.801 + 2.226 + 8.885 = $13.78 Mil.
Gross Profit was 0.794 + 1.682 + 2.11 + 8.806 = $13.39 Mil.
Total Current Assets was $77.57 Mil.
Total Assets was $122.46 Mil.
Property, Plant and Equipment(Net PPE) was $2.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.04 Mil.
Selling, General & Admin. Expense(SGA) was $14.30 Mil.
Total Current Liabilities was $6.07 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)
=(41.667 / 47.916) / (0.754 / 13.779)
=0.86958427 / 0.05472095
=15.8912

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)
=(1.33 / 13.779) / (41.337 / 47.916)
=0.97191378 / 0.98196844
=0.9898

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 - (131.099 + 2.321) / 172.079) / (1 - (77.572 + 2.526) / 122.458)
=0.22465844 / 0.34591452
=0.6495

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
=47.916 / 13.779
=3.4775

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))
=(1.035 / (1.035 + 2.526)) / (0.584 / (0.584 + 2.321))
=0.29064869 / 0.2010327
=1.4458

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)
=(15.5 / 47.916) / (14.297 / 13.779)
=0.32348276 / 1.03759344
=0.3118

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 + 6.154) / 172.079) / ((0 + 6.072) / 122.458)
=0.03576264 / 0.04958435
=0.7212

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
=(8.038 - 0 - -27.587) / 172.079
=0.207

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 14.51 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 2.5795.175727.62063.98880.51210.35670.74160.96822.311715.8912
GMI 1.05151.07671.03191.02510.9750.95191.04761.05281.06470.9898
AQI 1.54941.68021.61757.99525.65775.07825.07380.71290.93810.6495
SGI 0.14890.08680.16570.1661.16451.87210.55970.53040.5083.4775
DEPI 0.97971.0961.20741.33241.04061.02461.00070.95781.36441.4458
SGAI 5.11029.33464.86455.49550.82230.48371.79861.7721.91170.3118
LVGI 1.13181.67291.36751.20450.66020.3680.50970.36410.6750.7212
TATA -0.1735-0.1691-0.0103-0.0684-0.0404-0.018-0.0564-0.0053-0.02120.207
M-score -3.10-1.5720.721.24-0.96-0.46-1.68-2.97-1.8114.51
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