Banco Mercantil do Brasil (BSP:BMEB4) Beneish M-Score: -2.54 (As of Jun. 26, 2026)


BSP:BMEB4 Banco Mercantil do Brasil SA BSP:BMEB4
53 GF Score
Price R$69.48
GF Value R$45.48
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Banco Mercantil do Brasil Beneish M-Score?

Banco Mercantil do Brasil BSP:BMEB4 +2.93% 53 Beneish M-Score is -2.54 as of Jun. 26, 2026. GuruFocus rates BSP:BMEB4 with a GF Score™ of 53/100 and a GF Value™ of R$45.48 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,397 Banks companies, Banco Mercantil do Brasil ranks better than 75.38% 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Banco Mercantil do Brasil's Beneish M-Score or its related term are showing as below:

BSP:BMEB4' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31   Med: -2.35   Max: -1.74
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Banco Mercantil do Brasil was -1.74. The lowest was -4.31. And the median was -2.35.

BSP:BMEB4
53GF Score
Banco Mercantil do Brasil SA BSP:BMEB4
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Banco Mercantil do Brasil 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 Banco Mercantil do Brasil 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 * 1.0005+0.892 * 1.2353+0.115 * 0.9361
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1631+4.679 * -0.012034-0.327 * 1.5428
=-2.54

* 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 R$0 Mil.
Revenue was 1825.46 + 1380.422 + 1460.388 + 1374.676 = R$6,041 Mil.
Gross Profit was 1825.46 + 1380.422 + 1460.388 + 1374.676 = R$6,041 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$37,344 Mil.
Property, Plant and Equipment(Net PPE) was R$605 Mil.
Depreciation, Depletion and Amortization(DDA) was R$241 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,243 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$10,286 Mil.
Net Income was 273.473 + 145.018 + 261.084 + 237.712 = R$917 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 772.48 + -1174.073 + 30.384 + 1737.906 = R$1,367 Mil.
 Total Receivables was R$0 Mil.
Revenue was 1287.545 + 1234.975 + 1219.528 + 1148.205 = R$4,890 Mil.
Gross Profit was 1287.545 + 1234.975 + 1219.528 + 1148.205 = R$4,890 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$27,155 Mil.
Property, Plant and Equipment(Net PPE) was R$452 Mil.
Depreciation, Depletion and Amortization(DDA) was R$164 Mil.
Selling, General, & Admin. Expense(SGA) was R$865 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$4,848 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 / 6040.946) / (0 / 4890.253)
=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)
=(4890.253 / 4890.253) / (6040.946 / 6040.946)
=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 + 604.773) / 37344.098) / (1 - (0 + 452.153) / 27155.138)
=0.983805 / 0.983349
=1.0005

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
=6040.946 / 4890.253
=1.2353

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))
=(164.344 / (164.344 + 452.153)) / (240.798 / (240.798 + 604.773))
=0.266577 / 0.284776
=0.9361

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)
=(1243.113 / 6040.946) / (865.241 / 4890.253)
=0.205781 / 0.176932
=1.1631

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)
=((10285.891 + 0) / 37344.098) / ((4847.979 + 0) / 27155.138)
=0.275436 / 0.178529
=1.5428

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
=(917.287 - 0 - 1366.697) / 37344.098
=-0.012034

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.

Banco Mercantil do Brasil has a M-score of -2.54 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 -2.54 mean?
Banco Mercantil do Brasil (BSP:BMEB4) has a Beneish M-Score of -2.54 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Banco Mercantil do Brasil and its competitors. According to the industry distribution chart, Banco Mercantil do Brasil ranks #344 out of 1397 companies in the Banks industry, placing it in the top 24.6%.
Is Banco Mercantil do Brasil's Beneish M-Score too high?
Banco Mercantil do Brasil's current Beneish M-Score is -2.54. Based on the distribution chart, Banco Mercantil do Brasil ranks #344 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Banco Mercantil do Brasil has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Mercantil do Brasil's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Banco Mercantil do Brasil ranks #344 out of 1397 companies for Beneish M-Score. This places Banco Mercantil do Brasil in the top 25% 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 Banco Mercantil do Brasil and its competitors. Banco Mercantil do Brasil's current Beneish M-Score is -2.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Mercantil do Brasil stock overvalued right now?
Based on GuruFocus' analysis, Banco Mercantil do Brasil (BSP:BMEB4) is currently considered Significantly Overvalued. The stock's GF Value™ is R$45.48, compared to a current price of R$69.48 — trading 52.8% above its estimated fair value. The current Beneish M-Score is -2.54. Banco Mercantil do Brasil's overall GF Score™ is 53/100 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 Banco Mercantil do Brasil (BSP:BMEB4), the current Beneish M-Score is -2.54 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 Banco Mercantil do Brasil (BSP:BMEB4) Overvalued in 2026?

Based on GuruFocus' analysis, Banco Mercantil do Brasil stock appears to be overvalued. The current stock price of R$69.48 is trading 52.8% above its estimated GF Value™ of R$45.48. GuruFocus considers Banco Mercantil do Brasil to be Significantly Overvalued.

Key valuation signals for BSP:BMEB4:

  • Beneish M-Score: -2.54
  • GF Value™: R$45.48 vs. price of R$69.48 (52.8% above fair value)
  • GF Score™: 53/100 with 4 warning signs

No single metric tells the full story. See the BSP:BMEB4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Banco Mercantil do Brasil Business Description

Other Exchanges BMEB3:Brazil
Address R Rio de Janeiro 654, Belo Horizonte,, MG, BRA, 30160912
Banco Mercantil do Brasil SA offers commercial banking services. It offers personal and corporate credit cards, lease financing, business financing services, Internet banking, and other financial services. The company offers checking and savings accounts, and time deposits and funds; payroll-deductible loans, personal loans, overdraft facilities, credit cards, and vehicle financing services; private pension, insurance, and capitalization products and services; and collection, payment of taxes and fees to individuals.
53GF Score

Get the complete analysis for BSP:BMEB4

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

R$69.48
Price
R$45.48
GF Value