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GuruFocus has detected 2 Warning Signs with Progenics Pharmaceuticals Inc $PGNX.
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Progenics Pharmaceuticals Inc (NAS:PGNX)
Beneish M-Score
0.50 (As of Today)

Warning Sign:

Beneish M-Score 0.5 higher than -2.22, which implies that it might have manipulated its financial results.

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.

Progenics Pharmaceuticals Inc has a M-score of 0.50 signals that the company is a manipulator.

PGNX' s Beneish M-Score Range Over the Past 10 Years
Min: -8.71   Max: 373.92
Current: 0.5

-8.71
373.92

During the past 13 years, the highest Beneish M-Score of Progenics Pharmaceuticals Inc was 373.92. The lowest was -8.71. And the median was -1.56.


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 Progenics Pharmaceuticals Inc 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 * 0.1352+0.528 * 1+0.404 * 0.6702+0.892 * 6.373+0.115 * 1.3497
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1798+4.679 * -0.0399-0.327 * 3.6802
=0.50

* 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 USD 2.10 Mil.
Revenue was 2.347 + 4.652 + 53.85 + 8.476 = USD 69.33 Mil.
Gross Profit was 2.347 + 4.652 + 53.85 + 8.476 = USD 69.33 Mil.
Total Current Assets was USD 132.08 Mil.
Total Assets was USD 182.85 Mil.
Property, Plant and Equipment(Net PPE) was USD 4.70 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 1.58 Mil.
Selling, General & Admin. Expense(SGA) was USD 23.23 Mil.
Total Current Liabilities was USD 14.35 Mil.
Long-Term Debt was USD 48.85 Mil.
Net Income was -16.36 + -7.204 + 36.303 + -5.638 = USD 7.10 Mil.
Non Operating Income was 0 + -0.034 + 0 + 0 = USD -0.03 Mil.
Cash Flow from Operations was -12.747 + -8.048 + 38.762 + -3.538 = USD 14.43 Mil.
Accounts Receivable was USD 2.43 Mil.
Revenue was 2.45 + 5.095 + 1.396 + 1.937 = USD 10.88 Mil.
Gross Profit was 2.45 + 5.095 + 1.396 + 1.937 = USD 10.88 Mil.
Total Current Assets was USD 73.23 Mil.
Total Assets was USD 121.04 Mil.
Property, Plant and Equipment(Net PPE) was USD 2.30 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 1.18 Mil.
Selling, General & Admin. Expense(SGA) was USD 20.28 Mil.
Total Current Liabilities was USD 11.37 Mil.
Long-Term Debt was USD 0.00 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)
=(2.097 / 69.325) / (2.434 / 10.878)
=0.03024883 / 0.22375437
=0.1352

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)
=(10.878 / 10.878) / (69.325 / 69.325)
=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 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 - (132.079 + 4.702) / 182.854) / (1 - (73.231 + 2.299) / 121.037)
=0.25196605 / 0.37597594
=0.6702

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
=69.325 / 10.878
=6.373

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))
=(1.184 / (1.184 + 2.299)) / (1.583 / (1.583 + 4.702))
=0.33993684 / 0.25186953
=1.3497

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)
=(23.233 / 69.325) / (20.276 / 10.878)
=0.33513163 / 1.86394558
=0.1798

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)
=((48.85 + 14.353) / 182.854) / ((0 + 11.368) / 121.037)
=0.34564735 / 0.09392169
=3.6802

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
=(7.101 - -0.034 - 14.429) / 182.854
=-0.0399

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.

Progenics Pharmaceuticals Inc has a M-score of 0.50 signals that the company is likely to 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.

Progenics Pharmaceuticals Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.08510.74927.77821.86820.062327.62060.74160.0027411.86690.1716
GMI 11.00021.00431.02660.97431.03190.96451.00810.9921
AQI 1.4860.66960.34811.55460.56941.61755.07380.62741.5290.6678
SGI 1.08210.89460.72330.162510.66350.16570.55975.64450.19558.0023
DEPI 0.65240.62270.67371.33530.96541.20741.00071.59190.92570.6256
SGAI 1.15841.15521.20385.59780.0755.03261.82450.17666.00490.1605
LVGI 0.73361.40930.21842.95340.53171.36750.50970.71751.78564.4617
TATA -0.0245-0.10370.1669-0.3716-0.0999-0.0103-0.0564-0.05790.0078-0.0421
M-score -2.23-3.634.21-5.324.9320.69-1.730.63373.921.64

Progenics Pharmaceuticals Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.00270.03240.01590.5803411.866963.019262.33630.11180.17160.1352
GMI 1.00811.01111.00380.98470.9920.99360.9971.013611
AQI 0.62740.82820.821.18861.5291.5491.49821.10780.66780.6702
SGI 5.64455.74556.07130.06280.19550.25410.402523.2138.00236.373
DEPI 1.59191.4731.26911.13250.92570.52160.52920.51890.62561.3497
SGAI 0.17660.18810.204219.4566.00495.04752.71360.05140.16050.1798
LVGI 0.71751.24151.41642.03051.78562.6122.44031.21294.46173.6802
TATA -0.0579-0.0577-0.063-0.33680.0078-0.0355-0.0313-0.0376-0.0421-0.0399
M-score 0.630.640.80-8.71373.9252.6952.6516.431.640.50
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