Pembina Pipeline (Pembina Pipeline) Beneish M-Score

: -2.83 (As of Today)

View and export this data going back to 1999. 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PBA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94 Med: -2.61 Max: -2.04
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Pembina Pipeline was -2.04. The lowest was -2.94. And the median was -2.61.

Pembina Pipeline Beneish M-Score Historical Data

The historical data trend for Pembina Pipeline'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.

Pembina Pipeline Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.63

-2.62

-2.33

-2.30

-2.83

Pembina Pipeline 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															-2.30	-2.70	-2.82	-2.79	-2.83

Competitive Comparison

For the Oil & Gas Midstream subindustry, Pembina Pipeline'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.

Pembina Pipeline Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, Pembina Pipeline's Beneish M-Score distribution charts can be found below:

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

Pembina Pipeline 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 Pembina Pipeline 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 * 1.2292

0.528 * 0.8643

0.404 * 0.9362

0.892 * 0.7626

0.115 * 1.0915

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3484

4.679 * -0.033498

0.327 * 1.0403

-2.80

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $595 Mil.
Revenue was 1838.104 + 1693.888 + 1558.031 + 1738.654 = $6,829 Mil.
Gross Profit was 633.572 + 487.03 + 496.011 + 491.12 = $2,108 Mil.
Total Current Assets was $1,963 Mil.
Total Assets was $24,313 Mil.
Property, Plant and Equipment(Net PPE) was $12,165 Mil.
Depreciation, Depletion and Amortization(DDA) was $492 Mil.
Selling, General, & Admin. Expense(SGA) was $313 Mil.
Total Current Liabilities was $2,401 Mil.
Long-Term Debt & Capital Lease Obligation was $7,764 Mil.
Net Income was 520.274 + 255.709 + 273.22 + 269.678 = $1,319 Mil.
Non Operating Income was 172.928 + -8.129 + 6.774 + 3.654 = $175 Mil.
Cash Flow from Operations was 655.933 + 475.944 + 491.495 + 334.722 = $1,958 Mil.

Total Receivables was $635 Mil.
Revenue was 1986.75 + 2083.365 + 2417.213 + 2466.825 = $8,954 Mil.
Gross Profit was 501.288 + 655.222 + 555.295 + 676.935 = $2,389 Mil.
Total Current Assets was $1,003 Mil.
Total Assets was $23,178 Mil.
Property, Plant and Equipment(Net PPE) was $11,804 Mil.
Depreciation, Depletion and Amortization(DDA) was $523 Mil.
Selling, General, & Admin. Expense(SGA) was $305 Mil.
Total Current Liabilities was $1,515 Mil.
Long-Term Debt & Capital Lease Obligation was $7,800 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)
	=	(594.812 / 6828.677)	/	(634.523 / 8954.153)
	=	0.087105	/	0.070864
	=	1.2292

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)
	=	(2388.74 / 8954.153)	/	(2107.733 / 6828.677)
	=	0.266775	/	0.308659
	=	0.8643

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 - (1962.582 + 12165.325) / 24312.761)	/	(1 - (1002.576 + 11804.196) / 23177.77)
	=	0.41891	/	0.447455
	=	0.9362

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
	=	6828.677	/	8954.153
	=	0.7626

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))
	=	(523.151 / (523.151 + 11804.196))	/	(492.103 / (492.103 + 12165.325))
	=	0.042438	/	0.038879
	=	1.0915

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)
	=	(313.166 / 6828.677)	/	(304.534 / 8954.153)
	=	0.04586	/	0.03401
	=	1.3484

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)
	=	((7763.864 + 2400.865) / 24312.761)	/	((7799.779 + 1514.906) / 23177.77)
	=	0.418082	/	0.40188
	=	1.0403

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
	=	(1318.881 - 175.227	-	1958.094)	/	24312.761
	=	-0.033498

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.

Pembina Pipeline has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.

Pembina Pipeline Beneish M-Score Related Terms

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

Pembina Pipeline (Pembina Pipeline) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Pembina Pipeline Corp (NYSE:PBA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PMBPF.PFD:USA PBNAF.PFD:USA P5P:Germany P5P:Germany PPL.PF.E.PFD:Canada PPL.PF.A.PFD:Canada PPL.PR.O.PFD:Canada PPL.PR.Q.PFD:Canada PPL.PR.S.PFD:Canada PPL.PR.I.PFD:Canada PPL.PR.G.PFD:Canada PPL.PR.E.PFD:Canada PPL.PR.C.PFD:Canada PPL.PR.A.PFD:Canada PPL:Canada

Address

585 - 8th Avenue S.W., Suite 4000, Calgary, AB, CAN, T2P 1G1

Website

https://www.pembina.com

Pembina Pipeline is a midstream company serving the Canadian and North American (primarily Bakken) markets with an integrated product portfolio. Its assets include pipelines and gas gathering as well as assets across fractionation, storage, and propane exports.