C

PrimeEnergy Resources Corporati — Earnings Quality Grade C

PNRG · Energy

Some red flags

Revenue
$186M
2025
Net Income
$26M
2025
Gross Margin
26.4%
Free Cash Flow
$21M
01

Screening Summary

13
Passed
3
Watch
1
Failed
-3.17
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 36 days, change +1 days YoY

A2AR vs Revenue Growth

AR growth -17.5% vs revenue growth -20.5%

A3Revenue vs CFFO

Revenue -20.5%, CFFO -16.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -36.3% vs revenue -20.5%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 37.5%. Normal

!
B4Gross Margin

Gross margin swung -11.4pp (37.8% → 26.4%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 3.68. Profits backed by cash

C2Free Cash Flow

FCF < 50% of Net Income for 2 years

C3Accruals Ratio

Accruals ratio = -21.7%. Low accruals

C4Cash vs Debt

Cash $0.0B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Debt/EBITDA = 0.0x. Healthy

!
D3Soft Asset Growth

Other assets grew 44.7% vs revenue -20.5%

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.17 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-3.17
-4.0 Clean-2.22 Grey-1.78 Danger0
1.038
DSRI
AR growing faster than revenue?
1.434
GMI
Gross margin declining?
1.45
AQI
Asset quality deteriorating?
0.795
SGI
Revenue growth rate
1
DEPI
Depreciation slowing?
1.225
SGAI
SG&A ratio changing?
-0.2174
TATA
Accruals level
0.699
LVGI
Leverage increasing?
05

Altman Z-Score

5.47
Safe Zone
0 Distress1.102.605.0+ Safe
-0.03
Liquidity
0.8873
Cumulative profit
0.101
Operating efficiency
1.9932
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25