PGS Software (LTS:0RK2) Beneish M-Score: -0.78 (As of Jun. 27, 2026)


What is PGS Software Beneish M-Score?

PGS Software LTS:0RK2 4 Beneish M-Score is -0.78 as of Jun. 27, 2026. GuruFocus rates LTS:0RK2 with a GF Score™ of 4/100. The stock has 6 warning signs investors should review.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -0.78 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for PGS Software's Beneish M-Score or its related term are showing as below:

LTS:0RK2' s Beneish M-Score Range Over the Past 10 Years
Min: -7.32   Med: -2.1   Max: 0.93
Current: -0.78

During the past 13 years, the highest Beneish M-Score of PGS Software was 0.93. The lowest was -7.32. And the median was -2.10.

PGS Software Beneish M-Score Historical Data

* Premium members only.

The historical data trend for PGS Software's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

PGS Software Beneish M-Score Chart

PGS Software Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.26 -2.03 -1.68 -2.25 -2.76

PGS Software Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.19 -2.76 -2.68 -1.51 -0.78

LTS:0RK2 vs CRM, INTU, NOW: Beneish M-Score Comparison

For the Software - Application subindustry, PGS Software's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PGS Software Beneish M-Score vs Software Industry

For the Software industry and Technology sector, PGS Software's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PGS Software's Beneish M-Score falls into.


PGS Software Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 PGS Software 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 * 1.5376+0.528 * 0.9986+0.404 * 0.951+0.892 * 1.308+0.115 * 6.4253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9486+4.679 * 0.092174-0.327 * 1.3309
=-0.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Total Receivables was zł33.32 Mil.
Revenue was 53.402 + 46.52 + 43.363 + 38.693 = zł181.98 Mil.
Gross Profit was 52.417 + 45.832 + 42.605 + 38.011 = zł178.87 Mil.
Total Current Assets was zł82.94 Mil.
Total Assets was zł99.83 Mil.
Property, Plant and Equipment(Net PPE) was zł15.35 Mil.
Depreciation, Depletion and Amortization(DDA) was zł1.70 Mil.
Selling, General, & Admin. Expense(SGA) was zł86.48 Mil.
Total Current Liabilities was zł24.93 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.
Net Income was 11.462 + 11.977 + 8.142 + 7.665 = zł39.25 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was 8.612 + 14.412 + 8.9 + -1.88 = zł30.04 Mil.
 Total Receivables was zł16.57 Mil.
Revenue was 33.177 + 31.319 + 39.452 + 35.175 = zł139.12 Mil.
Gross Profit was 32.701 + 30.691 + 38.705 + 34.458 = zł136.56 Mil.
Total Current Assets was zł59.58 Mil.
Total Assets was zł64.09 Mil.
Property, Plant and Equipment(Net PPE) was zł3.48 Mil.
Depreciation, Depletion and Amortization(DDA) was zł6.19 Mil.
Selling, General, & Admin. Expense(SGA) was zł69.70 Mil.
Total Current Liabilities was zł11.61 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.42 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(33.317 / 181.978) / (16.565 / 139.123)
=0.183083 / 0.119067
=1.5376

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)
=(136.555 / 139.123) / (178.865 / 181.978)
=0.981542 / 0.982894
=0.9986

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (82.942 + 15.352) / 99.833) / (1 - (59.577 + 3.475) / 64.091)
=0.015416 / 0.016211
=0.951

4. SGI = Sales Growth Index

Ratio of Revenue 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
=181.978 / 139.123
=1.308

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(6.193 / (6.193 + 3.475)) / (1.7 / (1.7 + 15.352))
=0.640567 / 0.099695
=6.4253

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(86.477 / 181.978) / (69.698 / 139.123)
=0.475206 / 0.500981
=0.9486

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 24.933) / 99.833) / ((0.419 + 11.608) / 64.091)
=0.249747 / 0.187655
=1.3309

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
=(39.246 - 0 - 30.044) / 99.833
=0.092174

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PGS Software has a M-score of -0.78 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -0.78 mean?
PGS Software (LTS:0RK2) has a Beneish M-Score of -0.78 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PGS Software and its competitors.
Is PGS Software's Beneish M-Score too high?
PGS Software's current Beneish M-Score is -0.78. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's Beneish M-Score compare to CRM and INTU?
PGS Software's Beneish M-Score of -0.78 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PGS Software and its competitors. PGS Software's current Beneish M-Score is -0.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current Beneish M-Score of -0.78. The current Beneish M-Score is -0.78. PGS Software's overall GF Score™ is 4/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For PGS Software (LTS:0RK2), the current Beneish M-Score is -0.78 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

PGS Software Business Description

Address ul. Klecinska 123, Wroclaw, POL, 54-413
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.