AX (Axos Financial) Beneish M-Score: -2.70 (As of Jun. 24, 2026)


AX Axos Financial Inc AX
85 GF Score
Price $94.35
GF Value $87.65
Valuation Fairly Valued
! 4 Warning Signs
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What is Axos Financial Beneish M-Score?

Axos Financial AX +3.23% 85 Beneish M-Score is -2.70 as of Jun. 24, 2026. GuruFocus rates AX with a GF Score™ of 85/100 and a GF Value™ of $87.65 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,396 Banks companies, Axos Financial ranks better than 86.46% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.4   Max: 4.54
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Axos Financial was 4.54. The lowest was -3.50. And the median was -2.40.

AX
85GF Score
Axos Financial Inc AX
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Axos Financial 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 Axos Financial 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 * 0.9565+0.528 * 1+0.404 * 1+0.892 * 1.1594+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9629+4.679 * 0.000963-0.327 * 2.0104
=-2.70

* 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 $334 Mil.
Revenue was 387.723 + 380.805 + 319.187 + 317.164 = $1,405 Mil.
Gross Profit was 387.723 + 380.805 + 319.187 + 317.164 = $1,405 Mil.
Total Current Assets was $0 Mil.
Total Assets was $29,249 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General, & Admin. Expense(SGA) was $447 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,073 Mil.
Net Income was 124.677 + 128.397 + 112.352 + 110.675 = $476 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 42.027 + 104.108 + 118.433 + 183.352 = $448 Mil.
 Total Receivables was $301 Mil.
Revenue was 304.66 + 303.599 + 316.35 + 287.082 = $1,212 Mil.
Gross Profit was 304.66 + 303.599 + 316.35 + 287.082 = $1,212 Mil.
Total Current Assets was $0 Mil.
Total Assets was $23,981 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $29 Mil.
Selling, General, & Admin. Expense(SGA) was $401 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $437 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)
=(333.699 / 1404.879) / (300.907 / 1211.691)
=0.237529 / 0.248336
=0.9565

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)
=(1211.691 / 1211.691) / (1404.879 / 1404.879)
=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) / 29248.986) / (1 - (0 + 0) / 23981.154)
=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
=1404.879 / 1211.691
=1.1594

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))
=(28.827 / (28.827 + 0)) / (61.504 / (61.504 + 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)
=(447.315 / 1404.879) / (400.684 / 1211.691)
=0.318401 / 0.330682
=0.9629

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)
=((1072.517 + 0) / 29248.986) / ((437.427 + 0) / 23981.154)
=0.036669 / 0.01824
=2.0104

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
=(476.101 - 0 - 447.92) / 29248.986
=0.000963

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.

Axos Financial has a M-score of -2.70 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 -2.70 mean?
Axos Financial (AX) has a Beneish M-Score of -2.70 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Axos Financial and its competitors. According to the industry distribution chart, Axos Financial ranks #189 out of 1396 companies in the Banks industry, placing it in the top 13.5%.
Is Axos Financial's Beneish M-Score too high?
Axos Financial's current Beneish M-Score is -2.70. Based on the distribution chart, Axos Financial ranks #189 out of 1396 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Axos Financial has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axos Financial's Beneish M-Score compare to FINN and FFIN?
According to the Banks industry distribution chart, Axos Financial ranks #189 out of 1396 companies for Beneish M-Score. This places Axos Financial in the top 14% 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 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 Axos Financial and its competitors. Axos Financial's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axos Financial stock overvalued right now?
Based on GuruFocus' analysis, Axos Financial (AX) is currently considered Fairly Valued. The stock's GF Value™ is $87.65, compared to a current price of $94.35 — trading 7.6% above its estimated fair value. The current Beneish M-Score is -2.70. Axos Financial's overall GF Score™ is 85/100 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 Axos Financial (AX), the current Beneish M-Score is -2.70 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.

Is Axos Financial (AX) Overvalued in 2026?

Based on GuruFocus' analysis, Axos Financial stock appears to be overvalued. The current stock price of $94.35 is trading 7.6% above its estimated GF Value™ of $87.65. GuruFocus considers Axos Financial to be Fairly Valued.

Key valuation signals for AX:

  • Beneish M-Score: -2.70
  • GF Value™: $87.65 vs. price of $94.35 (7.6% above fair value)
  • GF Score™: 85/100 with 4 warning signs

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

Axos Financial Business Description

Other Exchanges BB4:Germany
Address 9205 West Russell Road, Suite 400, Las Vegas, NV, USA, 89148
Axos Financial Inc is a bank holding company that operates through its bank subsidiary, BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables. Its operating segments are banking business segment and securities business segment. The bank distributed its products through a wide range of retail distribution channels, including only banking brands, affinity groups, and sales teams, among others. The majority of the bank's mortgage exposure is titled toward the state of California, particularly its southern region. Net interest income is a majority of the bank's revenue.
85GF Score

Get the complete analysis for AX

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

$94.35
Price
$87.65
GF Value