Performant Financial (Performant Financial) Beneish M-Score

: -2.89 (As of Today)

View and export this data going back to 2012. Start your Free Trial

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.

Good Sign:

Beneish M-Score -2.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PFMT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4 Med: -2.77 Max: -2.12
Current: -2.89

During the past 13 years, the highest Beneish M-Score of Performant Financial was -2.12. The lowest was -3.40. And the median was -2.77.

Performant Financial Beneish M-Score Historical Data

The historical data trend for Performant Financial'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.

* Premium members only.

Performant Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.75

-2.73

-2.82

-2.71

-2.89

Performant Financial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-2.96	-3.40	-3.26	-2.89

Competitive Comparison

For the Specialty Business Services subindustry, Performant Financial'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.

Performant Financial Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Performant Financial's Beneish M-Score distribution charts can be found below:

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

Performant Financial 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 Performant Financial for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.91

0.528 * 1

0.404 * 1.2154

0.892 * 1.0418

0.115 * 0.7725

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0177

4.679 * -0.114935

0.327 * 0.6337

-2.89

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $28.8 Mil.
Revenue was 32.567 + 29.962 + 25.485 + 25.729 = $113.7 Mil.
Gross Profit was 32.567 + 29.962 + 25.485 + 25.729 = $113.7 Mil.
Total Current Assets was $39.8 Mil.
Total Assets was $99.0 Mil.
Property, Plant and Equipment(Net PPE) was $10.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.7 Mil.
Selling, General, & Admin. Expense(SGA) was $90.4 Mil.
Total Current Liabilities was $12.4 Mil.
Long-Term Debt & Capital Lease Obligation was $5.3 Mil.
Net Income was 1.255 + -0.58 + -3.973 + -4.221 = $-7.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0.003 = $0.0 Mil.
Cash Flow from Operations was -1.887 + 3.482 + 4.414 + -2.149 = $3.9 Mil.

Total Receivables was $30.4 Mil.
Revenue was 29.242 + 27.178 + 25.681 + 27.083 = $109.2 Mil.
Gross Profit was 29.242 + 27.178 + 25.681 + 27.083 = $109.2 Mil.
Total Current Assets was $57.5 Mil.
Total Assets was $118.8 Mil.
Property, Plant and Equipment(Net PPE) was $13.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.7 Mil.
Selling, General, & Admin. Expense(SGA) was $85.3 Mil.
Total Current Liabilities was $14.2 Mil.
Long-Term Debt & Capital Lease Obligation was $19.3 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)
	=	(28.798 / 113.743)	/	(30.377 / 109.184)
	=	0.253185	/	0.278218
	=	0.91

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)
	=	(109.184 / 109.184)	/	(113.743 / 113.743)
	=	1	/	1
	=	1

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 - (39.782 + 10.255) / 99.03)	/	(1 - (57.507 + 12.954) / 118.833)
	=	0.494729	/	0.407059
	=	1.2154

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
	=	113.743	/	109.184
	=	1.0418

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))
	=	(5.702 / (5.702 + 12.954))	/	(6.713 / (6.713 + 10.255))
	=	0.305639	/	0.395627
	=	0.7725

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)
	=	(90.447 / 113.743)	/	(85.312 / 109.184)
	=	0.795187	/	0.78136
	=	1.0177

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)
	=	((5.295 + 12.38) / 99.03)	/	((19.26 + 14.207) / 118.833)
	=	0.178481	/	0.281631
	=	0.6337

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
	=	(-7.519 - 0.003	-	3.86)	/	99.03
	=	-0.114935

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.

Performant Financial has a M-score of -2.89 suggests that the company is unlikely to be a manipulator.

Performant Financial Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Performant Financial's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Performant Financial (Performant Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Performant Financial Corp (NAS:PFMT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

333 North Canyons Parkway, Livermore, CA, USA, 94551

Website

https://www.performantcorp.com

Performant Financial Corp provides technology-enabled recovery and related analytics services in the United States. The company provides its services on an outsourced basis where it handles many or all aspects of its clients' recovery processes. It uses technology-enabled services platform to provide recovery and analytics services in a range of markets for the identification and recovery of student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. The services are primarily offered across a broad range of government and private clients in several markets. The revenue generated here is generally on success-based as it earns fees based on a percentage of the aggregate amount of funds that it enables the clients to recover.

Executives

Prescott Group Capital Management, L.l.c.	10 percent owner	1924 SOUTH UTICA, SUITE 1120, TULSA OK 74104-6429
Rohit Ramchandani	officer: Chief Financial Officer	333 NORTH CANYONS PARKWAY, LIVERMORE CA 94551
Ecmc Group, Inc.	10 percent owner	1 IMATION PLACE, BLDG 2, SUITE 392A, OAKDALE MN 55128
Pcp Managers Gp, Llc	10 percent owner	FOUR EMBARCADERO CENTER, SUITE 3610, SAN FRANCISCO CA 94111
Parthenon Dcs Holdings, Llc	10 percent owner	C/O PARTHENON CAPITAL PARTNERS, FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111
Eric Yanagi	director	400 OYSTER POINT BOULEVARD, SUITE 526, SOUTH SAN FRANCISCO CA 94080
Pcp Managers, L.p.	10 percent owner	C/O PARTHENON CAPITAL PARTNERS, FOUR EMBARCADERO CENTER, SUITE 3610, SAN FRANCISCO CA 94111
Pcap Ii, Llc	10 percent owner	C/O PARTHENON CAPITAL PARTNERS, FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111
Pcap Partners Ii, Llc	10 percent owner	C/O PARTHENON CAPITAL PARTNERS, FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111
Parthenon Investors Ii. L.p.	10 percent owner	C/O PARTHENON CAPITAL PARTNERS, 400 EMBARCADERO CENTER, SAN FRANCISCO CA 94111
James Lacamp	director	333 NORTH CANYONS PARKWAY, LIVERMORE CA 94551
Prescott Group Aggressive Small Cap Lp	10 percent owner	1924 SOUTH IRICA SUITE 1120, TULSA OK 741046529
Prescott Group Aggressive Small Cap Master Fund Gp	10 percent owner	1924 S UTICA SUITE # 1120, TULSA OK 74104-6529
Prescott Group Aggressive Small Cap Ii Lp	10 percent owner	1924 S UTICA SUITE # 1120, TULSA OK 74104-6529
Phil Frohlich	10 percent owner	1924 SOUTH IRICA SUITE 1120, TULSA OK 741046529