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PolyPeptide Group AG (XSWX:PPGN) Beneish M-Score : 3.42 (As of Dec. 14, 2024)


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What is PolyPeptide Group AG 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 3.42 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XSWX:PPGN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.42   Med: -2.38   Max: 3.42
Current: 3.42

During the past 6 years, the highest Beneish M-Score of PolyPeptide Group AG was 3.42. The lowest was -2.42. And the median was -2.38.


PolyPeptide Group AG Beneish M-Score Historical Data

The historical data trend for PolyPeptide Group AG'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.

PolyPeptide Group AG Beneish M-Score Chart

PolyPeptide Group AG Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.42 -2.42 -2.33 3.42

PolyPeptide Group AG Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - -2.33 - 3.42 -

Competitive Comparison of PolyPeptide Group AG's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, PolyPeptide Group AG'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.


PolyPeptide Group AG's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, PolyPeptide Group AG's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PolyPeptide Group AG's Beneish M-Score falls into.



PolyPeptide Group AG 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 PolyPeptide Group AG 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 * 1.4058+0.528 * 12.7699+0.404 * 1.1914+0.892 * 1.0896+0.115 * 0.938
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8789+4.679 * -0.127596-0.327 * 1.7961
=3.42

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was CHF74.3 Mil.
Revenue was CHF302.1 Mil.
Gross Profit was CHF4.4 Mil.
Total Current Assets was CHF308.0 Mil.
Total Assets was CHF649.9 Mil.
Property, Plant and Equipment(Net PPE) was CHF305.7 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF28.7 Mil.
Selling, General, & Admin. Expense(SGA) was CHF17.7 Mil.
Total Current Liabilities was CHF166.4 Mil.
Long-Term Debt & Capital Lease Obligation was CHF64.1 Mil.
Net Income was CHF-48.5 Mil.
Gross Profit was CHF0.0 Mil.
Cash Flow from Operations was CHF34.4 Mil.
Total Receivables was CHF48.5 Mil.
Revenue was CHF277.3 Mil.
Gross Profit was CHF51.3 Mil.
Total Current Assets was CHF248.3 Mil.
Total Assets was CHF568.2 Mil.
Property, Plant and Equipment(Net PPE) was CHF293.4 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF25.7 Mil.
Selling, General, & Admin. Expense(SGA) was CHF18.5 Mil.
Total Current Liabilities was CHF94.8 Mil.
Long-Term Debt & Capital Lease Obligation was CHF17.4 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)
=(74.293 / 302.135) / (48.5 / 277.287)
=0.245893 / 0.174909
=1.4058

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)
=(51.308 / 277.287) / (4.378 / 302.135)
=0.185036 / 0.01449
=12.7699

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 - (308.01 + 305.655) / 649.862) / (1 - (248.265 + 293.389) / 568.219)
=0.0557 / 0.046751
=1.1914

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
=302.135 / 277.287
=1.0896

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))
=(25.721 / (25.721 + 293.389)) / (28.735 / (28.735 + 305.655))
=0.080602 / 0.085933
=0.938

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)
=(17.692 / 302.135) / (18.474 / 277.287)
=0.058557 / 0.066624
=0.8789

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)
=((64.088 + 166.406) / 649.862) / ((17.42 + 94.79) / 568.219)
=0.354681 / 0.197477
=1.7961

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
=(-48.512 - 0 - 34.408) / 649.862
=-0.127596

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.

PolyPeptide Group AG has a M-score of 3.42 signals that the company is likely to be a manipulator.


PolyPeptide Group AG Beneish M-Score Related Terms

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PolyPeptide Group AG Business Description

Traded in Other Exchanges
Address
Neuhofstrasse 24, Baar, Zug, CHE, 6340
PolyPeptide Group AG is an independent contract development and manufacturing organization (CDMO) focused on peptides and oligonucleotides employed as an active pharmaceutical ingredients (APIs) and used as intermediates in therapeutic products. The company derives majority of its revenue from Europe and Asia.

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