Capital Power (TSX:CPX.PR.G.PFD) Beneish M-Score : -2.58 (As of Apr. 25, 2024)

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What is Capital Power 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.

Good Sign:

Beneish M-Score -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:CPX.PR.G.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.57 Max: -1.73
Current: -2.58

During the past 13 years, the highest Beneish M-Score of Capital Power was -1.73. The lowest was -2.91. And the median was -2.57.

Capital Power Beneish M-Score Historical Data

The historical data trend for Capital Power'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.

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Capital Power Beneish M-Score Chart

Capital Power Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.84

-2.18

-2.91

-1.73

-2.58

Capital Power 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															-1.73	-1.70	-2.03	-2.44	-2.58

Competitive Comparison of Capital Power's Beneish M-Score

For the Utilities - Independent Power Producers subindustry, Capital Power'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.

Capital Power's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Capital Power's Beneish M-Score distribution charts can be found below:

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

Capital Power 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 Capital Power 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 * 0.524

0.528 * 0.9125

0.404 * 0.8562

0.892 * 1.4827

0.115 * 0.992

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6848

4.679 * -0.012011

0.327 * 0.9637

-2.58

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$707.00 Mil.
Revenue was 852 + 1150 + 881 + 1267 = C$4,150.00 Mil.
Gross Profit was 293 + 641 + 387 + 663 = C$1,984.00 Mil.
Total Current Assets was C$2,632.00 Mil.
Total Assets was C$11,156.00 Mil.
Property, Plant and Equipment(Net PPE) was C$6,675.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$574.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$332.00 Mil.
Total Current Liabilities was C$2,047.00 Mil.
Long-Term Debt & Capital Lease Obligation was C$4,266.00 Mil.
Net Income was 97 + 274 + 87 + 286 = C$744.00 Mil.
Non Operating Income was 7 + 14 + 19 + 16 = C$56.00 Mil.
Cash Flow from Operations was -18 + 480 + 11 + 349 = C$822.00 Mil.

Total Receivables was C$910.00 Mil.
Revenue was 799 + 786 + 713 + 501 = C$2,799.00 Mil.
Gross Profit was 27 + 367 + 400 + 427 = C$1,221.00 Mil.
Total Current Assets was C$1,686.00 Mil.
Total Assets was C$10,135.00 Mil.
Property, Plant and Equipment(Net PPE) was C$6,487.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$553.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$327.00 Mil.
Total Current Liabilities was C$2,212.00 Mil.
Long-Term Debt & Capital Lease Obligation was C$3,739.00 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)
	=	(707 / 4150)	/	(910 / 2799)
	=	0.170361	/	0.325116
	=	0.524

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)
	=	(1221 / 2799)	/	(1984 / 4150)
	=	0.436227	/	0.478072
	=	0.9125

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 - (2632 + 6675) / 11156)	/	(1 - (1686 + 6487) / 10135)
	=	0.16574	/	0.193587
	=	0.8562

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
	=	4150	/	2799
	=	1.4827

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))
	=	(553 / (553 + 6487))	/	(574 / (574 + 6675))
	=	0.078551	/	0.079183
	=	0.992

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)
	=	(332 / 4150)	/	(327 / 2799)
	=	0.08	/	0.116827
	=	0.6848

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)
	=	((4266 + 2047) / 11156)	/	((3739 + 2212) / 10135)
	=	0.565884	/	0.587173
	=	0.9637

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
	=	(744 - 56	-	822)	/	11156
	=	-0.012011

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.

Capital Power has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

Capital Power Beneish M-Score Related Terms

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Capital Power (TSX:CPX.PR.G.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Capital Power Corp (TSX:CPX.PR.G.PFD) » Definitions » Beneish M-Score

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Address

10423 - 101 Street NW, Suite 1200, Edmonton, AB, CAN, T5H 0E9

Website

https://www.capitalpower.com

Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production. The company generates the vast majority of its revenue from sales of electricity and natural gas. Its customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.

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