Generation Development Group (ASX:GDG) Beneish M-Score: 10.94 (As of Jun. 26, 2026) — Near Median


ASX:GDG Generation Development Group Ltd ASX:GDG
57 GF Score
Price A$3.37
GF Value A$7.16
Valuation Possible Value Trap
! 3 Warning Signs
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What is Generation Development Group Beneish M-Score?

Generation Development Group ASX:GDG -3.71% 57 Beneish M-Score is 10.94 as of Jun. 26, 2026, which is at its 10-year median of 10.94. GuruFocus rates ASX:GDG with a GF Score™ of 57/100 and a GF Value™ of A$7.16 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 954 Asset Management companies, Generation Development Group ranks worse than 95.7% 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.

Warning Sign:

Beneish M-Score 10.94 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ASX:GDG' s Beneish M-Score Range Over the Past 10 Years
Min: 10.94   Med: 10.94   Max: 10.94
Current: 10.94

During the past 13 years, the highest Beneish M-Score of Generation Development Group was 10.94. The lowest was 10.94. And the median was 10.94.

ASX:GDG
57GF Score
Generation Development Group Ltd ASX:GDG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Generation Development 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 Generation Development 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 * 15.2257+0.528 * 1+0.404 * 0.9996+0.892 * 1.8861+0.115 * 0.4809
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.2829+4.679 * -0.013191-0.327 * 1.3488
=10.94

* 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 A$27.3 Mil.
Revenue was A$626.2 Mil.
Gross Profit was A$626.2 Mil.
Total Current Assets was A$0.0 Mil.
Total Assets was A$5,514.6 Mil.
Property, Plant and Equipment(Net PPE) was A$7.4 Mil.
Depreciation, Depletion and Amortization(DDA) was A$15.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$149.5 Mil.
Total Current Liabilities was A$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was A$5.4 Mil.
Net Income was A$38.2 Mil.
Gross Profit was A$98.8 Mil.
Cash Flow from Operations was A$12.2 Mil.
 Total Receivables was A$1.0 Mil.
Revenue was A$332.0 Mil.
Gross Profit was A$332.0 Mil.
Total Current Assets was A$0.0 Mil.
Total Assets was A$3,654.6 Mil.
Property, Plant and Equipment(Net PPE) was A$3.6 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$34.7 Mil.
Total Current Liabilities was A$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.7 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)
=(27.336 / 626.224) / (0.952 / 332.028)
=0.043652 / 0.002867
=15.2257

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)
=(332.028 / 332.028) / (626.224 / 626.224)
=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 + 7.419) / 5514.566) / (1 - (0 + 3.6) / 3654.589)
=0.998655 / 0.999015
=0.9996

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
=626.224 / 332.028
=1.8861

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))
=(1.75 / (1.75 + 3.6)) / (15.781 / (15.781 + 7.419))
=0.327103 / 0.680216
=0.4809

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)
=(149.524 / 626.224) / (34.727 / 332.028)
=0.238771 / 0.104591
=2.2829

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)
=((5.44 + 0) / 5514.566) / ((2.672 + 0) / 3654.589)
=0.000986 / 0.000731
=1.3488

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
=(38.247 - 98.835 - 12.155) / 5514.566
=-0.013191

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.

Generation Development Group has a M-score of 10.94 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 10.94 mean?
Generation Development Group (ASX:GDG) has a Beneish M-Score of 10.94 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Generation Development Group and its competitors. This is near median its historical median of 10.94. Over the past decade, Generation Development Group's Beneish M-Score has ranged from 10.94 to 10.94. According to the industry distribution chart, Generation Development Group ranks #913 out of 954 companies in the Asset Management industry, placing it in the top 95.7%.
Is Generation Development Group's Beneish M-Score too high?
Generation Development Group's current Beneish M-Score of 10.94 is near median its 10-year median of 10.94. Over the past 10 years, this metric has ranged from a low of 10.94 to a high of 10.94. Based on the distribution chart, Generation Development Group ranks #913 out of 954 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Generation Development Group has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Generation Development Group's Beneish M-Score compare to BLK and BX?
According to the Asset Management industry distribution chart, Generation Development Group ranks #913 out of 954 companies for Beneish M-Score. This places Generation Development Group in the lower half of its industry. Historically, Generation Development Group's own Beneish M-Score has ranged from 10.94 to 10.94 over the past decade. 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 Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 Generation Development Group and its competitors. Generation Development Group's current Beneish M-Score is 10.94, which is near median its own 10-year median of 10.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Development Group stock overvalued right now?
Based on GuruFocus' analysis, Generation Development Group (ASX:GDG) is currently considered Possible Value Trap. The stock's GF Value™ is A$7.16, compared to a current price of A$3.37 — trading 52.9% below its estimated fair value. The current Beneish M-Score is 10.94, which is near median its 10-year median of 10.94. Generation Development Group's overall GF Score™ is 57/100 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 Generation Development Group (ASX:GDG), the current Beneish M-Score is 10.94 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 Generation Development Group (ASX:GDG) Overvalued in 2026?

Based on GuruFocus' analysis, Generation Development Group stock appears to be undervalued. The current stock price of A$3.37 is trading 52.9% below its estimated GF Value™ of A$7.16. GuruFocus considers Generation Development Group to be Possible Value Trap.

Key valuation signals for ASX:GDG:

  • Beneish M-Score: 10.94 (near median its 10-year median of 10.94)
  • GF Value™: A$7.16 vs. price of A$3.37 (52.9% below fair value)
  • GF Score™: 57/100 with 3 warning signs

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

Generation Development Group Business Description

Address 447 Collins Street, Level 17, Melbourne, VIC, AUS, 3000
Founded in 1991, Generation originally operated as a pooled development fund, focusing on providing capital to businesses in financial services. Today, the firm is structured across three key business lines within wealth management. The first is through Generation Life, the market leader in investment bonds by in-flows, which offers tax-effective products, including investment bonds and annuities. The second business line is Lonsec, a prominent research and ratings provider to the Australian financial services sector, competing against Morningstar and Zenith. The third division provides managed account solutions, a result of the merger between Evidentia and Lonsec Investment Solutions, offering individually owned accounts professionally managed by experienced portfolio managers.
57GF Score

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

A$3.37
Price
A$7.16
GF Value