Switch to:
GuruFocus has detected 3 Warning Signs with Cameco Corp $CCJ.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Cameco Corp (NYSE:CCJ)
Beneish M-Score
-2.64 (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.

Cameco Corp has a M-score of -2.66 suggests that the company is not a manipulator.

CCJ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Max: -0.57
Current: -2.64

-3.59
-0.57

During the past 13 years, the highest Beneish M-Score of Cameco Corp was -0.57. The lowest was -3.59. And the median was -2.54.


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 Cameco Corp 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 * 0.9511+0.528 * 1.5935+0.404 * 1.1773+0.892 * 0.9315+0.115 * 0.7306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0628+4.679 * -0.093-0.327 * 0.9407
=-2.66

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $84 Mil.
Revenue was 293.22925226 + 665.044606042 + 510.874275252 + 361.716302156 = $1,831 Mil.
Gross Profit was 41.3580339135 + 117.352125347 + 111.488404028 + 33.1084225221 = $303 Mil.
Total Current Assets was $1,438 Mil.
Total Assets was $6,063 Mil.
Property, Plant and Equipment(Net PPE) was $3,473 Mil.
Depreciation, Depletion and Amortization(DDA) was $281 Mil.
Selling, General & Admin. Expense(SGA) was $148 Mil.
Total Current Liabilities was $268 Mil.
Long-Term Debt was $1,116 Mil.
Net Income was -13.4757600657 + -108.26298823 + 108.441409826 + -106.536373507 = $-120 Mil.
Non Operating Income was 4.12863225517 + -20.2623884849 + 36.087122368 + -15.5025593299 = $4 Mil.
Cash Flow from Operations was -5.74960782849 + 191.238473649 + 293.670277693 + -39.474949589 = $440 Mil.
Accounts Receivable was $95 Mil.
Revenue was 308.673068199 + 711.033326041 + 489.258254184 + 456.547513142 = $1,966 Mil.
Gross Profit was 89.3051565099 + 205.51082914 + 100.324890698 + 123.71613425 = $519 Mil.
Total Current Assets was $1,633 Mil.
Total Assets was $6,567 Mil.
Property, Plant and Equipment(Net PPE) was $3,874 Mil.
Depreciation, Depletion and Amortization(DDA) was $224 Mil.
Selling, General & Admin. Expense(SGA) was $150 Mil.
Total Current Liabilities was $465 Mil.
Long-Term Debt was $1,128 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)
=(84.1592589826 / 1830.86443571) / (94.9901708755 / 1965.51216157)
=0.04596695 / 0.04832846
=0.9511

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)
=(518.857010598 / 1965.51216157) / (303.30698581 / 1830.86443571)
=0.26398056 / 0.16566327
=1.5935

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 - (1438.15044446 + 3472.63016359) / 6063.01934713) / (1 - (1632.86934825 + 3873.66323907) / 6566.54468471)
=0.19004372 / 0.16142616
=1.1773

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
=1830.86443571 / 1965.51216157
=0.9315

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))
=(224.493719122 / (224.493719122 + 3873.66323907)) / (281.487737141 / (281.487737141 + 3472.63016359))
=0.05477919 / 0.07498106
=0.7306

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)
=(148.297576484 / 1830.86443571) / (149.798737945 / 1965.51216157)
=0.08099867 / 0.07621359
=1.0628

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)
=((1115.71300515 + 267.998804811) / 6063.01934713) / ((1128.45985181 + 464.589445033) / 6566.54468471)
=0.22822157 / 0.24260085
=0.9407

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
=(-119.833711977 - 4.45080680838 - 439.684193924) / 6063.01934713
=-0.093

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.

Cameco Corp has a M-score of -2.66 suggests that the company will not 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.

Cameco Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.68331.59310.80610.98031.35640.71460.87611.11350.48081.1305
GMI 0.80841.05571.10711.11981.11571.13991.14810.93521.05121.3276
AQI 1.29821.70270.52970.87360.95121.05671.62810.85211.19571.1967
SGI 1.45110.76751.24190.95881.10590.81991.20.9070.96610.9075
DEPI 0.92341.01981.08110.98270.95691.37560.8130.88211.06750.7629
SGAI 0.62410.69881.47931.37780.81871.44860.79270.96990.92191.2532
LVGI 1.11931.51920.58540.92091.00661.16050.99550.95321.03870.9669
TATA -0.06380.15250.0557-0.0111-0.0372-0.0639-0.0151-0.0239-0.0147-0.0523
M-score -2.63-1.23-2.25-2.62-2.17-3.19-2.14-2.66-2.94-2.49

Cameco Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.10021.16510.53340.90980.47330.39160.90320.38431.16980.9511
GMI 0.93840.99061.01540.91231.05180.98391.13481.08291.32811.5935
AQI 0.85211.09581.08831.211.19571.15541.18591.17281.19671.1773
SGI 0.9180.97160.94550.94430.98130.88690.84680.87390.8770.9315
DEPI 0.87320.89370.91460.9351.05251.1590.95410.8720.78450.7306
SGAI 0.96720.94561.06411.00810.92661.11921.17761.18341.24741.0628
LVGI 0.95321.06730.88421.01161.03870.98161.06570.91980.96690.9407
TATA -0.0242-0.0554-0.05240.0174-0.01250.02640.001-0.0587-0.0529-0.093
M-score -2.66-2.60-3.14-2.51-2.93-2.96-2.61-3.34-2.48-2.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

FEEDBACK