Finance House PJSC (ADX:FH) Beneish M-Score: -2.83 (As of Jun. 26, 2026)


ADX:FH Finance House PJSC ADX:FH
49 GF Score
Price د.إ2.10
GF Value د.إ2.21
Valuation Fairly Valued
! 5 Warning Signs
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What is Finance House PJSC Beneish M-Score?

Finance House PJSC ADX:FH 49 Beneish M-Score is -2.83 as of Jun. 26, 2026. GuruFocus rates ADX:FH with a GF Score™ of 49/100 and a GF Value™ of د.إ2.21 (Fairly Valued). The stock has 5 warning signs investors should review. Among 483 Credit Services companies, Finance House PJSC ranks better than 83.02% 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ADX:FH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Med: -2.29   Max: -1.39
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Finance House PJSC was -1.39. The lowest was -3.03. And the median was -2.29.

ADX:FH
49GF Score
Finance House PJSC ADX:FH
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Finance House PJSC 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 Finance House PJSC 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 * 1.0049+0.892 * 1.125+0.115 * 0.7577
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.851+4.679 * -0.107023-0.327 * 0.8683
=-2.83

* 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 (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was د.إ0.0 Mil.
Revenue was 47.517 + 44.66 + 58.536 + 49.344 = د.إ200.1 Mil.
Gross Profit was 47.517 + 44.66 + 58.536 + 49.344 = د.إ200.1 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ3,424.2 Mil.
Property, Plant and Equipment(Net PPE) was د.إ113.5 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ11.4 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ33.7 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ305.0 Mil.
Net Income was 11.532 + -2.607 + 7.048 + 9.099 = د.إ25.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = د.إ0.0 Mil.
Cash Flow from Operations was 137.544 + 205.582 + -63.94 + 112.353 = د.إ391.5 Mil.
 Total Receivables was د.إ0.0 Mil.
Revenue was 49.898 + 34.485 + 52.646 + 40.805 = د.إ177.8 Mil.
Gross Profit was 49.898 + 34.485 + 52.646 + 40.805 = د.إ177.8 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ3,038.1 Mil.
Property, Plant and Equipment(Net PPE) was د.إ114.9 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ8.5 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ35.2 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ311.7 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 / 200.057) / (0 / 177.834)
=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)
=(177.834 / 177.834) / (200.057 / 200.057)
=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 + 113.497) / 3424.188) / (1 - (0 + 114.897) / 3038.113)
=0.966854 / 0.962181
=1.0049

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
=200.057 / 177.834
=1.125

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))
=(8.52 / (8.52 + 114.897)) / (11.378 / (11.378 + 113.497))
=0.069034 / 0.091115
=0.7577

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)
=(33.689 / 200.057) / (35.192 / 177.834)
=0.168397 / 0.197892
=0.851

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)
=((305 + 0) / 3424.188) / ((311.667 + 0) / 3038.113)
=0.089072 / 0.102586
=0.8683

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
=(25.072 - 0 - 391.539) / 3424.188
=-0.107023

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.

Finance House PJSC has a M-score of -2.83 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 -2.83 mean?
Finance House PJSC (ADX:FH) has a Beneish M-Score of -2.83 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Finance House PJSC and its competitors. According to the industry distribution chart, Finance House PJSC ranks #82 out of 483 companies in the Credit Services industry, placing it in the top 17%.
Is Finance House PJSC's Beneish M-Score too high?
Finance House PJSC's current Beneish M-Score is -2.83. Based on the distribution chart, Finance House PJSC ranks #82 out of 483 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Finance House PJSC has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Finance House PJSC's Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, Finance House PJSC ranks #82 out of 483 companies for Beneish M-Score. This places Finance House PJSC in the top 17% of its industry — outperforming the majority of peers. 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Finance House PJSC and its competitors. Finance House PJSC's current Beneish M-Score is -2.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finance House PJSC stock overvalued right now?
Based on GuruFocus' analysis, Finance House PJSC (ADX:FH) is currently considered Fairly Valued. The stock's GF Value™ is د.إ2.21, compared to a current price of د.إ2.10 — trading 5% below its estimated fair value. The current Beneish M-Score is -2.83. Finance House PJSC's overall GF Score™ is 49/100 with 5 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 Finance House PJSC (ADX:FH), the current Beneish M-Score is -2.83 as of Jun. 26, 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 Finance House PJSC (ADX:FH) Overvalued in 2026?

Based on GuruFocus' analysis, Finance House PJSC stock appears to be undervalued. The current stock price of د.إ2.10 is trading 5% below its estimated GF Value™ of د.إ2.21. GuruFocus considers Finance House PJSC to be Fairly Valued.

Key valuation signals for ADX:FH:

  • Beneish M-Score: -2.83
  • GF Value™: د.إ2.21 vs. price of د.إ2.10 (5% below fair value)
  • GF Score™: 49/100 with 5 warning signs

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

Finance House PJSC Business Description

Address Zayed 1st Street, Khalidiya Area, P.O.Box: 7878, Orjowan Tower Building, Abu Dhabi, ARE
Finance House PJSC is a provider of financial products and services. The group is organised into six major business segments: Commercial and Retail Financing, which provides loans and other credit facilities for institutional and individual customers; Investment, which involves the management of the investment portfolio and treasury activities; Islamic Financing and Investing, which provides investment, consumer and commercial financing; Insurance, which involves non-life insurance services; Construction, involves construction related activities; and Brokerage Services. The group primarily operates in the United Arab Emirates.
49GF Score

Get the complete analysis for ADX:FH

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

د.إ2.10
Price
د.إ2.21
GF Value