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Agios Pharmaceuticals earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score68 / 100 · grade B · rank 433 of 1027
Agios Pharmaceuticals (AGIO) scores 68 of 100 for earnings quality, grade B: rank 433 of 1027 companies and 41 of 126 in health. It loses the most points on accruals of -2.7% of assets, higher than 66% of companies (profit backed by cash), Piotroski F-score 3 of 9, discretionary accruals of +0.9% of assets (modified Jones), smaller than most. It earns full or near-full marks for adjusted earnings 2% below GAAP, Montier C-score 0 of 4 checks failed, profit about as variable as cash flow (smoothness 15.96). Revenue grew 214% in the year: fast growth raises accruals, the Beneish and Dechow scores and the C-score by construction, so a growing company scores lower than a steady one with the same accounting.
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -2.7% of assets, higher than 66% of companies (profit backed by cash) | 10 | 29 |
| Montier C-score | Montier C-score 0 of 4 checks failed | 21 | 21 |
| Discretionary accruals | discretionary accruals of +0.9% of assets (modified Jones), smaller than most | 12 | 14 |
| Piotroski F-score | Piotroski F-score 3 of 9 | 5 | 14 |
| Non-GAAP gap | adjusted earnings 2% below GAAP | 13 | 14 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 15.96) | 7 | 7 |
How the score is built
Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.
Every company ranked → The full quality workbench, live → Agios Pharmaceuticals: cash flow →
Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.