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Dendreon (FRA:DNR) Beneish M-Score : -4.45 (As of May. 11, 2024)


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What is Dendreon 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.

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

FRA:DNR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.45   Med: -2.42   Max: 421.93
Current: -4.45

During the past 13 years, the highest Beneish M-Score of Dendreon was 421.93. The lowest was -4.45. And the median was -2.42.


Dendreon Beneish M-Score Historical Data

The historical data trend for Dendreon'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.

Dendreon Beneish M-Score Chart

Dendreon Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 421.93 1.42 -3.23 -3.95 -3.20

Dendreon Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Mar15
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.95 -4.52 -4.44 -4.45 -

Competitive Comparison of Dendreon's Beneish M-Score

For the Biotechnology subindustry, Dendreon'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.


Dendreon's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Dendreon's Beneish M-Score distribution charts can be found below:

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



Dendreon 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 Dendreon 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 * 0.6215+0.528 * 0.687+0.404 * 0.2071+0.892 * 0.9904+0.115 * 1.0847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6294+4.679 * -0.20639-0.327 * 1.4833
=-4.37

* 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 (Sep14) TTM:Last Year (Sep13) TTM:
Total Receivables was €16.0 Mil.
Revenue was 56.743 + 60.507 + 49.728 + 54.63 = €221.6 Mil.
Gross Profit was 29.119 + 32.634 + 23.245 + 31.107 = €116.1 Mil.
Total Current Assets was €172.8 Mil.
Total Assets was €264.0 Mil.
Property, Plant and Equipment(Net PPE) was €83.6 Mil.
Depreciation, Depletion and Amortization(DDA) was €18.8 Mil.
Selling, General, & Admin. Expense(SGA) was €122.7 Mil.
Total Current Liabilities was €49.3 Mil.
Long-Term Debt & Capital Lease Obligation was €459.0 Mil.
Net Income was -17.126 + -11.238 + -26.306 + -64.782 = €-119.5 Mil.
Non Operating Income was -0.022 + -0.004 + 0.027 + -0.114 = €-0.1 Mil.
Cash Flow from Operations was -17.989 + -2.822 + -20.227 + -23.805 = €-64.8 Mil.
Total Receivables was €26.0 Mil.
Revenue was 50.865 + 55.573 + 52.183 + 65.146 = €223.8 Mil.
Gross Profit was 15.76 + 22.374 + 18.697 + 23.715 = €80.5 Mil.
Total Current Assets was €237.7 Mil.
Total Assets was €390.6 Mil.
Property, Plant and Equipment(Net PPE) was €98.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €24.6 Mil.
Selling, General, & Admin. Expense(SGA) was €196.9 Mil.
Total Current Liabilities was €82.8 Mil.
Long-Term Debt & Capital Lease Obligation was €424.0 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)
=(15.98 / 221.608) / (25.964 / 223.767)
=0.072109 / 0.116031
=0.6215

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)
=(80.546 / 223.767) / (116.105 / 221.608)
=0.359955 / 0.523921
=0.687

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 - (172.845 + 83.634) / 264.044) / (1 - (237.696 + 98.833) / 390.561)
=0.028651 / 0.138345
=0.2071

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
=221.608 / 223.767
=0.9904

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))
=(24.571 / (24.571 + 98.833)) / (18.803 / (18.803 + 83.634))
=0.19911 / 0.183557
=1.0847

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)
=(122.741 / 221.608) / (196.907 / 223.767)
=0.553865 / 0.879964
=0.6294

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)
=((459.002 + 49.295) / 264.044) / ((424.016 + 82.845) / 390.561)
=1.925047 / 1.297777
=1.4833

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
=(-119.452 - -0.113 - -64.843) / 264.044
=-0.20639

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.

Dendreon has a M-score of -4.37 suggests that the company is unlikely to be a manipulator.


Dendreon Beneish M-Score Related Terms

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Dendreon (FRA:DNR) Business Description

Traded in Other Exchanges
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Dendreon Corp is a Delaware corporation. The Company is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. Its product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. PROVENGE(r) (sipuleucel-T), is its first commercialized product licensed by the United States Food and Drug Administration, and is a first in class autologous cellular immunotherapy for the treatment of asymptomatic or minimally symptomatic, metastatic, castrate-resistant (hormone-refractory) prostate cancer. Prostate cancer is the most common non-skin cancer among men in the United States, with over one million men currently diagnosed with the disease, and the second cause of cancer deaths in men in the United States. The Company owns worldwide rights for PROVENGE. The Other potential product candidates we have under development include our investigational active cellular immunotherapy, DN24-02, which potentially may be used for the treatment of patients with bladder, breast, ovarian and other solid tumors expressing HER2/neu. In addition, the Company has developed an orally-available small molecule treatment targeting TRPM8 that could be applicable to multiple types of cancer. The Company currently depends on specialized vendor relationships that are not readily replaceable for some of the components for its active immunotherapy candidates. Products such as chemotherapeutics, androgen metabolism or androgen receptor antagonists, endothelin A receptor antagonists, antisense compounds, angiogenesis inhibitors and gene therapies for cancer are also under development by a number of companies and could potentially compete with PROVENGE and its other product candidates. The Company's competitors include major pharmaceutical companies. The Company is subject to a variety of federal, state and local regulations relating to the use, handling, storage and disposal of hazardous materials, including chemicals and radioactive and biological materials. The Company is also subject to regulation by the Occupational Safety and Health Administration ('OSHA'), and the Environmental Protection Agency ('EPA'), and to regulation under the Toxic Substances Control Act.

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