Banco Bmg (BSP:BMGB4) Beneish M-Score: -1.79 (As of Jul. 22, 2026)

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BSP:BMGB4 Banco Bmg SA BSP:BMGB4
74 GF Score
Price R$5.23
GF Value R$7.44
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Banco Bmg Beneish M-Score?

Banco Bmg BSP:BMGB4 -0.19% 74 Beneish M-Score is -1.79 as of Jul. 22, 2026. GuruFocus rates BSP:BMGB4 with a GF Score™ of 74/100 and a GF Value™ of R$7.44 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,390 Banks companies, Banco Bmg ranks worse than 94.1% 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 -1.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:BMGB4' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.44   Max: -1.36
Current: -1.79

During the past 9 years, the highest Beneish M-Score of Banco Bmg was -1.36. The lowest was -2.97. And the median was -2.44.

BSP:BMGB4
74GF Score
Banco Bmg SA BSP:BMGB4
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Banco Bmg 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 Bmg 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 * 1.5394+0.115 * 0.9761
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5678+4.679 * 0.012658-0.327 * 0.7583
=-1.79

* 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 1203.533 + 1113.672 + 1931.751 + 763.62 = R$5,013 Mil.
Gross Profit was 1203.533 + 1113.672 + 1931.751 + 763.62 = R$5,013 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$50,622 Mil.
Property, Plant and Equipment(Net PPE) was R$119 Mil.
Depreciation, Depletion and Amortization(DDA) was R$188 Mil.
Selling, General, & Admin. Expense(SGA) was R$964 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$7,211 Mil.
Net Income was 147.09 + 172.296 + 131.157 + 126.547 = R$577 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was -227.745 + 36.135 + 117.711 + 10.219 = R$-64 Mil.
 Total Receivables was R$0 Mil.
Revenue was 1195.771 + -542.553 + 1800.871 + 802.055 = R$3,256 Mil.
Gross Profit was 1195.771 + -542.553 + 1800.871 + 802.055 = R$3,256 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$50,600 Mil.
Property, Plant and Equipment(Net PPE) was R$117 Mil.
Depreciation, Depletion and Amortization(DDA) was R$174 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,103 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$9,506 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 / 5012.576) / (0 / 3256.144)
=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)
=(3256.144 / 3256.144) / (5012.576 / 5012.576)
=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 + 118.611) / 50621.501) / (1 - (0 + 116.55) / 50599.751)
=0.997657 / 0.997697
=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
=5012.576 / 3256.144
=1.5394

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))
=(174.114 / (174.114 + 116.55)) / (188.4 / (188.4 + 118.611))
=0.599022 / 0.613659
=0.9761

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)
=(964.198 / 5012.576) / (1103.066 / 3256.144)
=0.192356 / 0.338765
=0.5678

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)
=((7211.438 + 0) / 50621.501) / ((9506.058 + 0) / 50599.751)
=0.142458 / 0.187868
=0.7583

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
=(577.09 - 0 - -63.68) / 50621.501
=0.012658

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 Bmg has a M-score of -1.79 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 -1.79 mean?
Banco Bmg (BSP:BMGB4) has a Beneish M-Score of -1.79 as of Jul. 22, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Banco Bmg and its competitors. According to the industry distribution chart, Banco Bmg ranks #1308 out of 1390 companies in the Banks industry, placing it in the top 94.1%.
Is Banco Bmg's Beneish M-Score too high?
Banco Bmg's current Beneish M-Score is -1.79. Based on the distribution chart, Banco Bmg ranks #1308 out of 1390 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Banco Bmg has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Banco Bmg's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Banco Bmg ranks #1308 out of 1390 companies for Beneish M-Score. This places Banco Bmg 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 Banco Bmg and its competitors. Banco Bmg's current Beneish M-Score is -1.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Bmg stock overvalued right now?
Based on GuruFocus' analysis, Banco Bmg (BSP:BMGB4) is currently considered Significantly Undervalued. The stock's GF Value™ is R$7.44, compared to a current price of R$5.23 — trading 29.7% below its estimated fair value. The current Beneish M-Score is -1.79. Banco Bmg's overall GF Score™ is 74/100 with 5 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 Bmg (BSP:BMGB4), the current Beneish M-Score is -1.79 as of Jul. 22, 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 Bmg (BSP:BMGB4) Overvalued in 2026?

Based on GuruFocus' analysis, Banco Bmg stock appears to be undervalued. The current stock price of R$5.23 is trading 29.7% below its estimated GF Value™ of R$7.44. GuruFocus considers Banco Bmg to be Significantly Undervalued.

Key valuation signals for BSP:BMGB4:

  • Beneish M-Score: -1.79
  • GF Value™: R$7.44 vs. price of R$5.23 (29.7% below fair value)
  • GF Score™: 74/100 with 5 warning signs

No single metric tells the full story. See the BSP:BMGB4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Banco Bmg Business Description

Address Avenida Presidente Juscelino Kubitscheck, No. 1830, 10th Floor, Tower 2, Vila Nova Conceicao, Sao Paulo, SP, BRA, 04543-900
Banco Bmg SA operates as a multiple service bank with commercial, credit, financing and investment portfolios. The company operates in two segments: i) Retail Banking: offering of banking products and services to individuals. It also provides a full range of retail products and services available to its clients through its digital bank. ii) Wholesale Banking: offering of banking products and services to legal entities. Wholesale customers are offered financing, structured financial services, derivative instruments and collateral insurance.
74GF Score

Get the complete analysis for BSP:BMGB4

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

R$5.23
Price
R$7.44
GF Value