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Canadian Pacific Railway Beneish M-Score

: 0.66 (As of Today)
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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 0.66 higher than -1.78, which implies that the company might have manipulated its financial results.

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

CP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Med: -2.55   Max: 6.62
Current: 0.66

During the past 13 years, the highest Beneish M-Score of Canadian Pacific Railway was 6.62. The lowest was -3.61. And the median was -2.55.


Canadian Pacific Railway Beneish M-Score Historical Data

The historical data trend for Canadian Pacific Railway'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.

Canadian Pacific Railway Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.29 -2.55 -2.73 -2.63 1.18

Canadian Pacific Railway Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.82 -2.56 1.18 0.35 0.66

Competitive Comparison

For the Railroads subindustry, Canadian Pacific Railway'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.

   

Canadian Pacific Railway Beneish M-Score Distribution

For the Transportation industry and Industrials sector, Canadian Pacific Railway's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Canadian Pacific Railway's Beneish M-Score falls into.



Canadian Pacific Railway 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 Canadian Pacific Railway 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 * 1.2007+0.528 * 1.0623+0.404 * 7.9559+0.892 * 1.0128+0.115 * 0.9559
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0718+4.679 * -0.007-0.327 * 0.7153
=0.60

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $751 Mil.
Revenue was 1719.7750702905 + 1451.8167456556 + 1593.75 + 1532.6335727251 = $6,298 Mil.
Gross Profit was 922.36800999688 + 667.45655608215 + 873.4375 + 849.97237787073 = $3,313 Mil.
Total Current Assets was $1,258 Mil.
Total Assets was $54,572 Mil.
Property, Plant and Equipment(Net PPE) was $16,793 Mil.
Depreciation, Depletion and Amortization(DDA) was $652 Mil.
Selling, General, & Admin. Expense(SGA) was $388 Mil.
Total Current Liabilities was $2,506 Mil.
Long-Term Debt & Capital Lease Obligation was $14,349 Mil.
Net Income was 597.46954076851 + 466.03475513428 + 415.625 + 372.50414331939 = $1,852 Mil.
Non Operating Income was 212.43361449547 + 148.49921011058 + -20.3125 + -49.719832688817 = $291 Mil.
Cash Flow from Operations was 552.17119650109 + 484.20221169036 + 471.875 + 432.48362402336 = $1,941 Mil.
Total Receivables was $618 Mil.
Revenue was 1680.8510638298 + 1558.5965470602 + 1570.7705519557 + 1408.1632653061 = $6,218 Mil.
Gross Profit was 961.53846153846 + 838.57108759647 + 878.28870325552 + 796.67422524565 = $3,475 Mil.
Total Current Assets was $1,626 Mil.
Total Assets was $20,216 Mil.
Property, Plant and Equipment(Net PPE) was $16,890 Mil.
Depreciation, Depletion and Amortization(DDA) was $626 Mil.
Selling, General, & Admin. Expense(SGA) was $358 Mil.
Total Current Liabilities was $2,305 Mil.
Long-Term Debt & Capital Lease Obligation was $6,424 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)
=(751.3277100906 / 6297.9753886713) / (617.83960720131 / 6218.3814281518)
=0.1192967 / 0.09935698
=1.2007

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)
=(3475.0724776361 / 6218.3814281518) / (3313.2344439498 / 6297.9753886713)
=0.55883875 / 0.52607929
=1.0623

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 - (1258.2005623243 + 16793.189628241) / 54572.008747266) / (1 - (1626.022913257 + 16889.525368249) / 20216.039279869)
=0.66921888 / 0.08411593
=7.9559

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
=6297.9753886713 / 6218.3814281518
=1.0128

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))
=(625.56938705106 / (625.56938705106 + 16889.525368249)) / (651.81487944738 / (651.81487944738 + 16793.189628241))
=0.03571602 / 0.03736398
=0.9559

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)
=(388.32523434601 / 6297.9753886713) / (357.73454536697 / 6218.3814281518)
=0.06165874 / 0.05752856
=1.0718

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)
=((14348.641049672 + 2506.2480474852) / 54572.008747266) / ((6423.8952536825 + 2305.2373158756) / 20216.039279869)
=0.30885594 / 0.43179242
=0.7153

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
=(1851.6334392222 - 290.90049191724 - 1940.7320322148) / 54572.008747266
=-0.007

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.

Canadian Pacific Railway has a M-score of 0.60 signals that the company is likely to be a manipulator.


Canadian Pacific Railway Beneish M-Score Related Terms

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Canadian Pacific Railway Business Description

Canadian Pacific Railway logo
Traded in Other Exchanges
Address
7550 Ogden Dale Road S.E., Calgary, AB, CAN, T2C 4X9
Canadian Pacific is a CAD 8 billion Class-1 railroads operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern United States. It is the second-smallest Class I railroad by revenue and route miles. In 2021, CP hauled shipments of grain (22% of freight revenue), intermodal containers (22%), energy products (like crude and frac sand), chemicals, and plastics (20%) coal (8%), fertilizer and potash (10%), automotive products (5%), and a diverse mix of other merchandise.
Executives
Brooks John Kenneth officer: SVP & Chief Marketing Officer 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Clements James Dominic Luther officer: VP Planning & Transportation 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Foran Mike officer: VP Network Transportation 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Trafton Gordon T. Ii director 2632 SUTTON CIRCLE NAPERVILLE IL 60564
Peverett Jane L director 1489 MARINE DRIVE, SUITE 802 WEST VANCOUVER A1 V7T 1B8
Derry John E officer: Vice-President Human Resources 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Johnson Robert Allen officer: Executive VP Operations 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Denham Gillian H director C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Fatt William R. director 129 ROCHESTER AVENUE TORONTO A6 M4N 1N9
Velani Nadeem officer: Interim VP and CFO 7550 OGDEN DALE ROAD S. E. CALGARY A0 T2C 4X9
Paull Matthew H director MCDONALDS CORP 2915 JORIE BLVD OAK BROOK IL 60523
Reardon Andrew Fitzpatrick director C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Melman Anthony Ronald director 150 BLOOR STREET WEST TORONTO A6 M5S 2X9
Pitz Laird Joseph officer: VP & Chief Risk Officer 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Edwards Peter John officer: VP HR & Labour Relations 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9

Canadian Pacific Railway Headlines

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