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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 -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Lojas Renner's Beneish M-Score or its related term are showing as below:
BSP:LREN3'
s Beneish M-Score Range Over the Past 10 Years
Min: -39.03 Med: -2.46 Max: -1.87
Current: -2.92
During the past 13 years, the highest Beneish M-Score of Lojas Renner was -1.87. The lowest was -39.03. And the median was -2.46.
The historical data trend for Lojas Renner's Beneish M-Score can be seen below:
* 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.
For the Department Stores subindustry, Lojas Renner's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lojas Renner Beneish M-Score vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lojas Renner's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lojas Renner's Beneish M-Score falls into.
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 Lojas Renner 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 * 0.9674
+
0.528 * 0.9868
+
0.404 * 0.9774
+
0.892 * 1.0349
+
0.115 * 1.0043
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9699
+
4.679 * -0.090916
-
0.327 * 1.0038
=
-2.92
* 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.
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.
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))
=
(1277.315 / (1277.315 + 4867.179))
/
(1296.339 / (1296.339 + 4966.602))
=
0.20788
/
0.206986
=
1.0043
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
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
=
(1493.933 - 0
-
3231.086)
/
19107.201
=
-0.090916
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.
Lojas Renner has a M-score of -2.92 suggests that the company is unlikely to be a manipulator.
Lojas Renner (BSP:LREN3) has a Beneish M-Score of -2.92 as of Aug. 11, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lojas Renner and its competitors. According to the industry distribution chart, Lojas Renner ranks #326 out of 1090 companies in the Retail - Cyclical industry, placing it in the top 29.9%.
Is Lojas Renner's Beneish M-Score too high?
Lojas Renner's current Beneish M-Score is -2.92. Based on the distribution chart, Lojas Renner ranks #326 out of 1090 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Lojas Renner has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lojas Renner's Beneish M-Score compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Lojas Renner ranks #326 out of 1090 companies for Beneish M-Score. This puts Lojas Renner in the upper 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 Retail - Cyclical company?
A good Beneish M-Score depends on the Retail - Cyclical 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 Lojas Renner and its competitors. Lojas Renner's current Beneish M-Score is -2.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lojas Renner stock overvalued right now?
Based on GuruFocus' analysis, Lojas Renner (BSP:LREN3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$16.63, compared to a current price of R$12.12 — trading 27.1% below its estimated fair value. The current Beneish M-Score is -2.92. Lojas Renner's overall GF Score™ is 82/100 with 1 warning sign 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 Lojas Renner (BSP:LREN3), the current Beneish M-Score is -2.92 as of Aug. 11, 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 Lojas Renner (BSP:LREN3) Overvalued in 2026?
Based on GuruFocus' analysis, Lojas Renner stock appears to be undervalued.
The current stock price of R$12.12 is trading 27.1% below its estimated GF Value™ of R$16.63.
GuruFocus considers Lojas Renner to be Modestly Undervalued.
Key valuation signals for BSP:LREN3:
Beneish M-Score: -2.92
GF Value™: R$16.63 vs. price of R$12.12 (27.1% below fair value)
No single metric tells the full story. See the BSP:LREN3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lojas Renner SA is an omnichannel fashion retailer in Brazil, bringing together the Renner, Camicado, Youcom, Realize, and Repassa brands in a fashion and lifestyle ecosystem that connects customers through digital channels and physical stores distributed across Brazil, Argentina, and Uruguay. It operates in two segments namely Retail engaged in trade of clothing, perfumery, cosmetics, watches and home & decoration, urban deliveries and logistics management solutions covering the operations of Renner, Camicado, Youcom, Repassa, Uello and operations in Uruguay and Argentina; and Financial products engaged in granting of individual and corporate loans, financing of purchases, insurance and the practice of receivables and payables inherent to credit, financing and investment companies.
82GF Score
Get the complete analysis for BSP:LREN3
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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