Abu Dhabi Commercial Bank (ADX:ADCB) Beneish M-Score: -2.31 (As of Jul. 14, 2026)

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ADX:ADCB Abu Dhabi Commercial Bank ADX:ADCB
61 GF Score
Price د.إ14.40
GF Value د.إ13.57
Valuation Fairly Valued
! 4 Warning Signs
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What is Abu Dhabi Commercial Bank Beneish M-Score?

Abu Dhabi Commercial Bank ADX:ADCB -2.04% 61 Beneish M-Score is -2.31 as of Jul. 14, 2026. GuruFocus rates ADX:ADCB with a GF Score™ of 61/100 and a GF Value™ of د.إ13.57 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,399 Banks companies, Abu Dhabi Commercial Bank ranks worse than 66.4% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ADX:ADCB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98   Med: -2.5   Max: -1.92
Current: -2.31

During the past 13 years, the highest Beneish M-Score of Abu Dhabi Commercial Bank was -1.92. The lowest was -2.98. And the median was -2.50.

ADX:ADCB
61GF Score
Abu Dhabi Commercial Bank ADX:ADCB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Abu Dhabi Commercial Bank 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 Abu Dhabi Commercial Bank 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+0.528 * 1+0.404 * 1.0006+0.892 * 1.2019+0.115 * 0.7903
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8405+4.679 * -0.016697-0.327 * 0.7941
=-2.31

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was د.إ0 Mil.
Revenue was 5259 + 1199.764 + 5878.188 + 5723.314 = د.إ18,060 Mil.
Gross Profit was 5259 + 1199.764 + 5878.188 + 5723.314 = د.إ18,060 Mil.
Total Current Assets was د.إ0 Mil.
Total Assets was د.إ808,857 Mil.
Property, Plant and Equipment(Net PPE) was د.إ915 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ458 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ2,277 Mil.
Total Current Liabilities was د.إ0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ55,049 Mil.
Net Income was 3361 + 3340.956 + 3090.422 + 2568.056 = د.إ12,360 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0 Mil.
Cash Flow from Operations was 9627 + 12372.222 + 2092.509 + 1774.269 = د.إ25,866 Mil.
 Total Receivables was د.إ0 Mil.
Revenue was 4214 + 1381.83 + 4711.203 + 4719.493 = د.إ15,027 Mil.
Gross Profit was 4214 + 1381.83 + 4711.203 + 4719.493 = د.إ15,027 Mil.
Total Current Assets was د.إ0 Mil.
Total Assets was د.إ679,716 Mil.
Property, Plant and Equipment(Net PPE) was د.إ1,167 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ418 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ2,254 Mil.
Total Current Liabilities was د.إ0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ58,258 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)
=(0 / 18060.266) / (0 / 15026.526)
=0 / 0
=1

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)
=(15026.526 / 15026.526) / (18060.266 / 18060.266)
=1 / 1
=1

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 - (0 + 915) / 808857) / (1 - (0 + 1166.86) / 679716.147)
=0.998869 / 0.998283
=1.0006

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
=18060.266 / 15026.526
=1.2019

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))
=(417.724 / (417.724 + 1166.86)) / (458 / (458 + 915))
=0.263617 / 0.333576
=0.7903

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)
=(2277.038 / 18060.266) / (2253.972 / 15026.526)
=0.12608 / 0.15
=0.8405

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)
=((55049 + 0) / 808857) / ((58258.112 + 0) / 679716.147)
=0.068058 / 0.085709
=0.7941

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
=(12360.434 - 0 - 25866) / 808857
=-0.016697

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.

Abu Dhabi Commercial Bank has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.31 mean?
Abu Dhabi Commercial Bank (ADX:ADCB) has a Beneish M-Score of -2.31 as of Jul. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Abu Dhabi Commercial Bank and its competitors. According to the industry distribution chart, Abu Dhabi Commercial Bank ranks #929 out of 1399 companies in the Banks industry, placing it in the top 66.4%.
Is Abu Dhabi Commercial Bank's Beneish M-Score too high?
Abu Dhabi Commercial Bank's current Beneish M-Score is -2.31. Based on the distribution chart, Abu Dhabi Commercial Bank ranks #929 out of 1399 companies in the Banks industry, which is below the industry midpoint. Overall, Abu Dhabi Commercial Bank has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Abu Dhabi Commercial Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Abu Dhabi Commercial Bank ranks #929 out of 1399 companies for Beneish M-Score. This places Abu Dhabi Commercial Bank in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Abu Dhabi Commercial Bank and its competitors. Abu Dhabi Commercial Bank's current Beneish M-Score is -2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi Commercial Bank stock overvalued right now?
Based on GuruFocus' analysis, Abu Dhabi Commercial Bank (ADX:ADCB) is currently considered Fairly Valued. The stock's GF Value™ is د.إ13.57, compared to a current price of د.إ14.40 — trading 6.1% above its estimated fair value. The current Beneish M-Score is -2.31. Abu Dhabi Commercial Bank's overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Abu Dhabi Commercial Bank (ADX:ADCB), the current Beneish M-Score is -2.31 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Abu Dhabi Commercial Bank (ADX:ADCB) Overvalued in 2026?

Based on GuruFocus' analysis, Abu Dhabi Commercial Bank stock appears to be overvalued. The current stock price of د.إ14.40 is trading 6.1% above its estimated GF Value™ of د.إ13.57. GuruFocus considers Abu Dhabi Commercial Bank to be Fairly Valued.

Key valuation signals for ADX:ADCB:

  • Beneish M-Score: -2.31
  • GF Value™: د.إ13.57 vs. price of د.إ14.40 (6.1% above fair value)
  • GF Score™: 61/100 with 4 warning signs

No single metric tells the full story. See the ADX:ADCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Abu Dhabi Commercial Bank Business Description

Address Sheikh Zayed Bin Sultan Street, Head Office Building, Plot C- 33, Sector E-11, P. O. Box 939, Abu Dhabi, ARE
Abu Dhabi Commercial Bank is principally engaged in the business of retail, commercial and Islamic banking, and provision of other financial services. Its segments include Retail banking, Private banking, Corporate and investment banking, Investments and treasury, and Others. The majority of the revenue is derived from Corporate and investment banking segment that comprises of business banking, cash management, trade finance, corporate finance, small and medium enterprise financing, investment banking, Islamic financing, infrastructure and asset finance, government and public enterprises. It includes loans, deposits and other transactions and balances with corporate customers.
61GF Score

Get the complete analysis for ADX:ADCB

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

د.إ14.40
Price
د.إ13.57
GF Value