Allam Bank BSC (BAH:SALAM) Beneish M-Score: -2.29 (As of Jun. 25, 2026)


BAH:SALAM Al Salam Bank BSC BAH:SALAM
51 GF Score
Price BHD0.22
GF Value BHD0.29
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Allam Bank BSC Beneish M-Score?

Allam Bank BSC BAH:SALAM 51 Beneish M-Score is -2.29 as of Jun. 25, 2026. GuruFocus rates BAH:SALAM with a GF Score™ of 51/100 and a GF Value™ of BHD0.29 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,396 Banks companies, Allam Bank BSC ranks worse than 68.55% 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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BAH:SALAM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Med: -2.26   Max: -1.46
Current: -2.29

During the past 13 years, the highest Beneish M-Score of Allam Bank BSC was -1.46. The lowest was -3.58. And the median was -2.26.

BAH:SALAM
51GF Score
Al Salam Bank BSC BAH:SALAM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Allam Bank 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 Allam Bank 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+0.892 * 1.5526+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.031748-0.327 * 1.4628
=-2.29

* 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 BHD0.0 Mil.
Revenue was 58.699 + 147.218 + 94.788 + 50.989 = BHD351.7 Mil.
Gross Profit was 58.699 + 147.218 + 94.788 + 50.989 = BHD351.7 Mil.
Total Current Assets was BHD0.0 Mil.
Total Assets was BHD8,510.9 Mil.
Property, Plant and Equipment(Net PPE) was BHD0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD13.3 Mil.
Selling, General, & Admin. Expense(SGA) was BHD0.0 Mil.
Total Current Liabilities was BHD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was BHD1,321.4 Mil.
Net Income was 23.13 + 18.646 + 20.819 + 18.778 = BHD81.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BHD0.0 Mil.
Cash Flow from Operations was 255.924 + -138.59 + 76.111 + 158.134 = BHD351.6 Mil.
 Total Receivables was BHD0.0 Mil.
Revenue was 50.303 + 44.481 + 87.113 + 44.617 = BHD226.5 Mil.
Gross Profit was 50.303 + 44.481 + 87.113 + 44.617 = BHD226.5 Mil.
Total Current Assets was BHD0.0 Mil.
Total Assets was BHD7,380.6 Mil.
Property, Plant and Equipment(Net PPE) was BHD0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was BHD8.6 Mil.
Selling, General, & Admin. Expense(SGA) was BHD0.0 Mil.
Total Current Liabilities was BHD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was BHD783.4 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 / 351.694) / (0 / 226.514)
=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)
=(226.514 / 226.514) / (351.694 / 351.694)
=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) / 8510.904) / (1 - (0 + 0) / 7380.595)
=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
=351.694 / 226.514
=1.5526

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))
=(8.63 / (8.63 + 0)) / (13.277 / (13.277 + 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 / 351.694) / (0 / 226.514)
=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)
=((1321.426 + 0) / 8510.904) / ((783.368 + 0) / 7380.595)
=0.155263 / 0.106139
=1.4628

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
=(81.373 - 0 - 351.579) / 8510.904
=-0.031748

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.

Allam Bank BSC has a M-score of -2.29 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 -2.29 mean?
Allam Bank BSC (BAH:SALAM) has a Beneish M-Score of -2.29 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allam Bank BSC and its competitors. According to the industry distribution chart, Allam Bank BSC ranks #957 out of 1396 companies in the Banks industry, placing it in the top 68.6%.
Is Allam Bank BSC's Beneish M-Score too high?
Allam Bank BSC's current Beneish M-Score is -2.29. Based on the distribution chart, Allam Bank BSC ranks #957 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Allam Bank BSC has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allam Bank BSC's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, Allam Bank BSC ranks #957 out of 1396 companies for Beneish M-Score. This places Allam Bank 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 Allam Bank BSC and its competitors. Allam Bank BSC's current Beneish M-Score is -2.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allam Bank BSC stock overvalued right now?
Based on GuruFocus' analysis, Allam Bank BSC (BAH:SALAM) is currently considered Modestly Undervalued. The stock's GF Value™ is BHD0.29, compared to a current price of BHD0.22 — trading 23.4% below its estimated fair value. The current Beneish M-Score is -2.29. Allam Bank BSC's overall GF Score™ is 51/100 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 Allam Bank BSC (BAH:SALAM), the current Beneish M-Score is -2.29 as of Jun. 25, 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 Allam Bank BSC (BAH:SALAM) Overvalued in 2026?

Based on GuruFocus' analysis, Allam Bank BSC stock appears to be undervalued. The current stock price of BHD0.22 is trading 23.4% below its estimated GF Value™ of BHD0.29. GuruFocus considers Allam Bank BSC to be Modestly Undervalued.

Key valuation signals for BAH:SALAM:

  • Beneish M-Score: -2.29
  • GF Value™: BHD0.29 vs. price of BHD0.22 (23.4% below fair value)
  • GF Score™: 51/100 with 3 warning signs

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

Allam Bank BSC Business Description

Address Burj Al Khair 3, P.O. Box 18282, Manama, BHR
Al Salam Bank BSC is a banking corporation operating in Bahrain. It provides various Islamic banking products and services in the Kingdom of Bahrain. The company offers money market, trading, and treasury services, including short-term commodities, managing portfolios, and serving clients with a range of investment products, funds, and alternative investments. Besides, it also manages the un-deployed capital of the company by investing it in high-quality financial instruments. The company's reportable segments namely Banking, Treasury, Takaful and Investments. It generates maximum revenue from the Banking segment.
51GF Score

Get the complete analysis for BAH:SALAM

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

BHD0.22
Price
BHD0.29
GF Value