Arab Banking (BSC) (BAH:ABC) Beneish M-Score: -2.38 (As of Jul. 21, 2026)

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BAH:ABC Arab Banking Corp (BSC) BAH:ABC
27 GF Score
Price $0.30
GF Value $0.38
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Arab Banking (BSC) Beneish M-Score?

Arab Banking (BSC) BAH:ABC 27 Beneish M-Score is -2.38 as of Jul. 21, 2026. GuruFocus rates BAH:ABC with a GF Score™ of 27/100 and a GF Value™ of $0.38 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,394 Banks companies, Arab Banking (BSC) ranks worse than 53.08% 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Arab Banking (BSC)'s Beneish M-Score or its related term are showing as below:

BAH:ABC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84   Med: -2.45   Max: -2.35
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Arab Banking (BSC) was -2.35. The lowest was -2.84. And the median was -2.45.

BAH:ABC
27GF Score
Arab Banking Corp (BSC) BAH:ABC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arab Banking (BSC) 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 Arab Banking (BSC) 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 * 1.0002+0.892 * 1.05+0.115 * 0.8954
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7231+4.679 * 0.00018-0.327 * 0.9546
=-2.38

* 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 $0 Mil.
Revenue was $1,407 Mil.
Gross Profit was $1,407 Mil.
Total Current Assets was $0 Mil.
Total Assets was $49,912 Mil.
Property, Plant and Equipment(Net PPE) was $291 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General, & Admin. Expense(SGA) was $41 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,483 Mil.
Net Income was $257 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $248 Mil.
 Total Receivables was $0 Mil.
Revenue was $1,340 Mil.
Gross Profit was $1,340 Mil.
Total Current Assets was $0 Mil.
Total Assets was $46,265 Mil.
Property, Plant and Equipment(Net PPE) was $280 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General, & Admin. Expense(SGA) was $54 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,440 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 / 1407) / (0 / 1340)
=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)
=(1340 / 1340) / (1407 / 1407)
=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 + 291) / 49912) / (1 - (0 + 280) / 46265)
=0.99417 / 0.993948
=1.0002

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
=1407 / 1340
=1.05

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))
=(67 / (67 + 280)) / (80 / (80 + 291))
=0.193084 / 0.215633
=0.8954

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)
=(41 / 1407) / (54 / 1340)
=0.02914 / 0.040299
=0.7231

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)
=((1483 + 0) / 49912) / ((1440 + 0) / 46265)
=0.029712 / 0.031125
=0.9546

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
=(257 - 0 - 248) / 49912
=0.00018

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.

Arab Banking (BSC) has a M-score of -2.38 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 -2.38 mean?
Arab Banking (BSC) (BAH:ABC) has a Beneish M-Score of -2.38 as of Jul. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arab Banking (BSC) and its competitors. According to the industry distribution chart, Arab Banking (BSC) ranks #740 out of 1394 companies in the Banks industry, placing it in the top 53.1%.
Is Arab Banking (BSC)'s Beneish M-Score too high?
Arab Banking (BSC)'s current Beneish M-Score is -2.38. Based on the distribution chart, Arab Banking (BSC) ranks #740 out of 1394 companies in the Banks industry, which is below the industry midpoint. Overall, Arab Banking (BSC) has a GF Score™ of 27/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arab Banking (BSC)'s Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, Arab Banking (BSC) ranks #740 out of 1394 companies for Beneish M-Score. This places Arab Banking (BSC) 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 Arab Banking (BSC) and its competitors. Arab Banking (BSC)'s current Beneish M-Score is -2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arab Banking (BSC) stock overvalued right now?
Based on GuruFocus' analysis, Arab Banking (BSC) (BAH:ABC) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.38, compared to a current price of $0.30 — trading 21.1% below its estimated fair value. The current Beneish M-Score is -2.38. Arab Banking (BSC)'s overall GF Score™ is 27/100 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 Arab Banking (BSC) (BAH:ABC), the current Beneish M-Score is -2.38 as of Jul. 21, 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 Arab Banking (BSC) (BAH:ABC) Overvalued in 2026?

Based on GuruFocus' analysis, Arab Banking (BSC) stock appears to be undervalued. The current stock price of $0.30 is trading 21.1% below its estimated GF Value™ of $0.38. GuruFocus considers Arab Banking (BSC) to be Modestly Undervalued.

Key valuation signals for BAH:ABC:

  • Beneish M-Score: -2.38
  • GF Value™: $0.38 vs. price of $0.30 (21.1% below fair value)
  • GF Score™: 27/100 with 4 warning signs

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

Arab Banking (BSC) Business Description

Address Road 1703, Diplomatic Area, P.O. Box 5698, Bank ABC Tower, Building 152, Block 317, Manama, BHR
Arab Banking Corp (BSC) is an international bank registered in the Kingdom of Bahrain. It acts as a provider of trade finance, treasury, project & structured finance, syndications, corporate and institutional banking as well as Islamic banking services. It operates its business across the globe, covering countries in the Middle East, North Africa, Europe, the Americas, and Asia. The group is organized into five operating segments: MENA subsidiaries, International wholesale banking, Group treasury, ABC Brasil, and Others. It generates the majority of its revenue from ABC Brasil. The company operates in Bahrain, Europe, Brasil, and Other, with the majority of revenue from Brasil.
27GF Score

Get the complete analysis for BAH:ABC

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

$0.30
Price
$0.38
GF Value