PGPKY (Polska Grupa Energetyczna) Beneish M-Score : 1.01 (As of Mar. 17, 2025)

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What is Polska Grupa Energetyczna Beneish M-Score?

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 1.01 higher than -1.78, which implies that the company might have manipulated its financial results.

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

PGPKY' s Beneish M-Score Range Over the Past 10 Years
Min: -5.79 Med: -2.86 Max: 1.01
Current: 1.01

During the past 13 years, the highest Beneish M-Score of Polska Grupa Energetyczna was 1.01. The lowest was -5.79. And the median was -2.86.

Polska Grupa Energetyczna Beneish M-Score Historical Data

The historical data trend for Polska Grupa Energetyczna'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.

Polska Grupa Energetyczna Beneish M-Score Chart

Polska Grupa Energetyczna Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-5.06

-3.68

-2.58

-2.26

-2.92

Polska Grupa Energetyczna Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.93	-2.92	-2.60	-1.60	1.01

Competitive Comparison of Polska Grupa Energetyczna's Beneish M-Score

For the Utilities - Regulated Electric subindustry, Polska Grupa Energetyczna'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.

Polska Grupa Energetyczna's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Polska Grupa Energetyczna's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Polska Grupa Energetyczna's Beneish M-Score falls into.

Polska Grupa Energetyczna 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 Polska Grupa Energetyczna 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 * 1.1591

0.528 * 8.7199

0.404 * 1.2318

0.892 * 0.7754

0.115 * 0.3823

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7565

4.679 * -0.13068

0.327 * 0.952

1.01

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $1,904 Mil.
Revenue was 4054.255 + 3765.336 + 4387.464 + 6484.151 = $18,691 Mil.
Gross Profit was 588.521 + 436.376 + 428.82 + -1159.326 = $294 Mil.
Total Current Assets was $5,603 Mil.
Total Assets was $27,217 Mil.
Property, Plant and Equipment(Net PPE) was $19,663 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,471 Mil.
Selling, General, & Admin. Expense(SGA) was $1,299 Mil.
Total Current Liabilities was $7,789 Mil.
Long-Term Debt & Capital Lease Obligation was $2,648 Mil.
Net Income was 189.661 + 293.088 + 232.647 + -2094.864 = $-1,379 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2218.091 + 2199.854 + -609.363 + -1631.394 = $2,177 Mil.

Total Receivables was $2,119 Mil.
Revenue was 5605.148 + 5823.205 + 7088.304 + 5589.516 = $24,106 Mil.
Gross Profit was 912.09 + 985.297 + 1451.112 + -37.776 = $3,311 Mil.
Total Current Assets was $7,874 Mil.
Total Assets was $29,630 Mil.
Property, Plant and Equipment(Net PPE) was $20,032 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,219 Mil.
Selling, General, & Admin. Expense(SGA) was $2,214 Mil.
Total Current Liabilities was $9,246 Mil.
Long-Term Debt & Capital Lease Obligation was $2,689 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)
	=	(1904.421 / 18691.206)	/	(2119.092 / 24106.173)
	=	0.101889	/	0.087907
	=	1.1591

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)
	=	(3310.723 / 24106.173)	/	(294.391 / 18691.206)
	=	0.137339	/	0.01575
	=	8.7199

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 - (5602.542 + 19663.217) / 27216.554)	/	(1 - (7874.301 + 20031.857) / 29630.297)
	=	0.071677	/	0.058188
	=	1.2318

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
	=	18691.206	/	24106.173
	=	0.7754

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))
	=	(1218.727 / (1218.727 + 20031.857))	/	(3470.685 / (3470.685 + 19663.217))
	=	0.05735	/	0.150026
	=	0.3823

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)
	=	(1298.706 / 18691.206)	/	(2214.183 / 24106.173)
	=	0.069482	/	0.091851
	=	0.7565

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)
	=	((2648.214 + 7788.849) / 27216.554)	/	((2689.377 + 9245.693) / 29630.297)
	=	0.383482	/	0.4028
	=	0.952

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
	=	(-1379.468 - 0	-	2177.188)	/	27216.554
	=	-0.13068

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.

Polska Grupa Energetyczna has a M-score of 1.01 signals that the company is likely to be a manipulator.

Polska Grupa Energetyczna Beneish M-Score Related Terms

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Polska Grupa Energetyczna Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Polska Grupa Energetyczna SA (OTCPK:PGPKY) » Definitions » Beneish M-Score

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PGE:Poland 6PG:Germany

Address

Aleja Krasnicka 27, Warsaw, POL, 20-718

Website

http://www.gkpge.pl

Polska Grupa Energetyczna SA is a Polish electric utility company of which the Polish State Treasury is the majority shareholder. The vast majority of Polska Grupa's revenue comes, collectively, from its conventional generation business, which mines coal and controls power plant operations; its distribution business, which distributes electricity throughout Poland; and its supply business, which purchases and sells electricity and heat. Polska Grupa controls a portfolio of lignite, coal, gas, biomass, hydro, and wind power plants. most of the company's power production is derived from its lignite-fired and coal-fired facilities. Almost all of Polska Grupa's revenue comes from the Polish market, and it is one of the largest energy producers in the country.