Loews (BSP:L1OE34) Beneish M-Score: -2.76 (As of Jul. 03, 2026)


BSP:L1OE34 Loews Corp BSP:L1OE34
66 GF Score
Price R$565.60
GF Value R$487.45
! 7 Warning Signs
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What is Loews Beneish M-Score?

Loews BSP:L1OE34 66 Beneish M-Score is -2.76 as of Jul. 03, 2026. GuruFocus rates BSP:L1OE34 with a GF Score™ of 66/100 and a GF Value™ of R$487.45. The stock has 7 warning signs investors should review. Among 400 Insurance companies, Loews ranks better than 76.25% 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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:L1OE34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.83   Max: -2.49
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Loews was -2.49. The lowest was -2.96. And the median was -2.83.

BSP:L1OE34
66GF Score
Loews Corp BSP:L1OE34
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Loews 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 Loews 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 * 0.99+0.528 * 1+0.404 * 1.0083+0.892 * 0.9428+0.115 * 0.9544
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.074906-0.327 * 0.8957
=-2.86

* 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 R$57,258 Mil.
Revenue was R$99,163 Mil.
Gross Profit was R$99,163 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$471,089 Mil.
Property, Plant and Equipment(Net PPE) was R$58,349 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,328 Mil.
Selling, General, & Admin. Expense(SGA) was R$0 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$46,030 Mil.
Net Income was R$9,095 Mil.
Gross Profit was R$26,493 Mil.
Cash Flow from Operations was R$17,889 Mil.
 Total Receivables was R$61,346 Mil.
Revenue was R$105,175 Mil.
Gross Profit was R$105,175 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$499,934 Mil.
Property, Plant and Equipment(Net PPE) was R$65,513 Mil.
Depreciation, Depletion and Amortization(DDA) was R$3,557 Mil.
Selling, General, & Admin. Expense(SGA) was R$0 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$54,537 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)
=(57257.571 / 99162.803) / (61345.555 / 105175.139)
=0.57741 / 0.58327
=0.99

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)
=(105175.139 / 105175.139) / (99162.803 / 99162.803)
=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 + 58348.711) / 471088.784) / (1 - (0 + 65512.538) / 499934.243)
=0.876141 / 0.868958
=1.0083

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
=99162.803 / 105175.139
=0.9428

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))
=(3556.883 / (3556.883 + 65512.538)) / (3327.977 / (3327.977 + 58348.711))
=0.051497 / 0.053958
=0.9544

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 / 99162.803) / (0 / 105175.139)
=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)
=((46029.741 + 0) / 471088.784) / ((54536.839 + 0) / 499934.243)
=0.097709 / 0.109088
=0.8957

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
=(9094.652 - 26492.879 - 17889.24) / 471088.784
=-0.074906

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.

Loews has a M-score of -2.86 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 -2.76 mean?
Loews (BSP:L1OE34) has a Beneish M-Score of -2.76 as of Jul. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Loews and its competitors. According to the industry distribution chart, Loews ranks #95 out of 400 companies in the Insurance industry, placing it in the top 23.7%.
Is Loews' Beneish M-Score too high?
Loews' current Beneish M-Score is -2.76. Based on the distribution chart, Loews ranks #95 out of 400 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Loews has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Loews' Beneish M-Score compare to MKL and WRB?
According to the Insurance industry distribution chart, Loews ranks #95 out of 400 companies for Beneish M-Score. This places Loews in the top 24% 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 Loews and its competitors. Loews's current Beneish M-Score is -2.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loews stock overvalued right now?
Loews (BSP:L1OE34) has a current Beneish M-Score of -2.76. The stock's GF Value™ is R$487.45, compared to a current price of R$565.60 — trading 16% above its estimated fair value. The current Beneish M-Score is -2.76. Loews' overall GF Score™ is 66/100 with 7 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 Loews (BSP:L1OE34), the current Beneish M-Score is -2.76 as of Jul. 03, 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 Loews (BSP:L1OE34) Overvalued in 2026?

Based on GuruFocus' analysis, Loews stock appears to be overvalued. The current stock price of R$565.60 is trading 16% above its estimated GF Value™ of R$487.45.

Key valuation signals for BSP:L1OE34:

  • Beneish M-Score: -2.76
  • GF Value™: R$487.45 vs. price of R$565.60 (16% above fair value)
  • GF Score™: 66/100 with 7 warning signs

No single metric tells the full story. See the BSP:L1OE34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Loews Business Description

Address 9 West 57th Street, New York, NY, USA, 10019-2714
Loews Corp is a holding company along with its subsidiary engaged in commercial property and casualty insurance, transportation and storage of natural gas and natural gas liquids, operation of a chain of hotels, and also in the manufacture of rigid plastic packaging solutions. It has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA Financial Corporation, Boardwalk Pipeline Partners, LP and Loews Hotels Holding Corporation; and the Corporate segment.
66GF Score

Get the complete analysis for BSP:L1OE34

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

R$565.60
Price
R$487.45
GF Value