AFE (American Financial Group) Beneish M-Score: -2.58 (As of Jun. 24, 2026)


What is American Financial Group Beneish M-Score?

American Financial Group AFE 80 Beneish M-Score is -2.58 as of Jun. 24, 2026. GuruFocus rates AFE with a GF Score™ of 80/100. The stock has 3 warning signs investors should review. Among 399 Insurance companies, American Financial Group ranks better than 60.15% 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AFE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.54   Max: -2.38
Current: -2.58

During the past 13 years, the highest Beneish M-Score of American Financial Group was -2.38. The lowest was -2.88. And the median was -2.54.

American Financial Group 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 American Financial Group 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 * 1.0913+0.528 * 1+0.404 * 1+0.892 * 0.9807+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.024692-0.327 * 1.1656
=-2.58

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $8,381.00 Mil.
Revenue was $8,118.00 Mil.
Gross Profit was $8,118.00 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $32,642.00 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $86.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1,820.00 Mil.
Net Income was $842.00 Mil.
Gross Profit was $115.00 Mil.
Cash Flow from Operations was $1,533.00 Mil.
 Total Receivables was $7,831.00 Mil.
Revenue was $8,278.00 Mil.
Gross Profit was $8,278.00 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $30,836.00 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1,475.00 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)
=(8381 / 8118) / (7831 / 8278)
=1.032397 / 0.946001
=1.0913

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)
=(8278 / 8278) / (8118 / 8118)
=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 + 0) / 32642) / (1 - (0 + 0) / 30836)
=1 / 1
=1

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
=8118 / 8278
=0.9807

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))
=(81 / (81 + 0)) / (86 / (86 + 0))
=1 / 1
=1

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)
=(0 / 8118) / (0 / 8278)
=0 / 0
=1

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)
=((1820 + 0) / 32642) / ((1475 + 0) / 30836)
=0.055756 / 0.047834
=1.1656

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
=(842 - 115 - 1533) / 32642
=-0.024692

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.

American Financial Group has a M-score of -2.58 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 -2.58 mean?
American Financial Group (AFE) has a Beneish M-Score of -2.58 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on American Financial Group and its competitors. According to the industry distribution chart, American Financial Group ranks #159 out of 399 companies in the Insurance industry, placing it in the top 39.8%.
Is American Financial Group's Beneish M-Score too high?
American Financial Group's current Beneish M-Score is -2.58. Based on the distribution chart, American Financial Group ranks #159 out of 399 companies in the Insurance industry, which is above the industry midpoint. Overall, American Financial Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's Beneish M-Score compare to CNA and AIZ?
According to the Insurance industry distribution chart, American Financial Group ranks #159 out of 399 companies for Beneish M-Score. This puts American Financial Group in the upper 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 American Financial Group and its competitors. American Financial Group's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Financial Group stock overvalued right now?
American Financial Group (AFE) has a current Beneish M-Score of -2.58. The current Beneish M-Score is -2.58. American Financial Group's overall GF Score™ is 80/100 with 3 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 American Financial Group (AFE), the current Beneish M-Score is -2.58 as of Jun. 24, 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.

American Financial Group Business Description

Other Exchanges AFG:USAQFI:Germany
Address 301 East Fourth Street, Cincinnati, OH, USA, 45202
American Financial Group Inc is an insurance holding company. Through its subsidiaries, it is engaged in the property and casualty insurance business, focusing on specialized commercial products for businesses. The group operates through two segments: Property and Casualty Insurance, which generates maximum revenue, and Other. The Property and Casualty Insurance segment is further divided into different sub-segments, such as Property and transportation, Specialty casualty, and Specialty financial. These sub-segments offer insurance coverage for vehicles and commercial property, customized programs for small to mid-sized businesses, workers' compensation insurance, risk management insurance programs for lending and leasing institutions, trade credit insurance, and other insurance products.