Porto Seguro (BSP:PSSA3) Beneish M-Score: -2.42 (As of Jun. 24, 2026)


BSP:PSSA3 Porto Seguro SA BSP:PSSA3
74 GF Score
Price R$52.19
GF Value R$45.15
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is Porto Seguro Beneish M-Score?

Porto Seguro BSP:PSSA3 -1.97% 74 Beneish M-Score is -2.42 as of Jun. 24, 2026. GuruFocus rates BSP:PSSA3 with a GF Score™ of 74/100 and a GF Value™ of R$45.15 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 399 Insurance companies, Porto Seguro ranks worse than 59.9% 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:PSSA3' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Med: -2.65   Max: -1.92
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Porto Seguro was -1.92. The lowest was -3.43. And the median was -2.65.

BSP:PSSA3
74GF Score
Porto Seguro SA BSP:PSSA3
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Porto Seguro 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 Porto Seguro 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 * 1.4455+0.528 * 1+0.404 * 1.0033+0.892 * 1.158+0.115 * 0.9798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0123+4.679 * -0.045411-0.327 * 1.8308
=-2.42

* 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$2,317 Mil.
Revenue was 11161.95 + 11122.125 + 10986.274 + 10486.808 = R$43,757 Mil.
Gross Profit was 11161.95 + 11122.125 + 10986.274 + 10486.808 = R$43,757 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$57,474 Mil.
Property, Plant and Equipment(Net PPE) was R$981 Mil.
Depreciation, Depletion and Amortization(DDA) was R$423 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,760 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$805 Mil.
Net Income was 1134.018 + 838.665 + 831.901 + 878.054 = R$3,683 Mil.
Non Operating Income was 1437.026 + 1281.817 + 1283.976 + 1228.79 = R$5,232 Mil.
Cash Flow from Operations was -197.509 + 1188.243 + -429.091 + 499.368 = R$1,061 Mil.
 Total Receivables was R$1,384 Mil.
Revenue was 10208.706 + 8707.559 + 9637.364 + 9233.42 = R$37,787 Mil.
Gross Profit was 10208.706 + 8707.559 + 9637.364 + 9233.42 = R$37,787 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$49,467 Mil.
Property, Plant and Equipment(Net PPE) was R$1,005 Mil.
Depreciation, Depletion and Amortization(DDA) was R$421 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,355 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$378 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)
=(2316.665 / 43757.157) / (1384.049 / 37787.049)
=0.052944 / 0.036628
=1.4455

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)
=(37787.049 / 37787.049) / (43757.157 / 43757.157)
=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 + 980.988) / 57474.401) / (1 - (0 + 1005.21) / 49466.824)
=0.982932 / 0.979679
=1.0033

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
=43757.157 / 37787.049
=1.158

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))
=(421.085 / (421.085 + 1005.21)) / (423.059 / (423.059 + 980.988))
=0.29523 / 0.301314
=0.9798

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)
=(2760.384 / 43757.157) / (2354.84 / 37787.049)
=0.063084 / 0.062319
=1.0123

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)
=((804.767 + 0) / 57474.401) / ((378.325 + 0) / 49466.824)
=0.014002 / 0.007648
=1.8308

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
=(3682.638 - 5231.609 - 1061.011) / 57474.401
=-0.045411

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.

Porto Seguro has a M-score of -2.42 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 -2.42 mean?
Porto Seguro (BSP:PSSA3) has a Beneish M-Score of -2.42 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Porto Seguro and its competitors. According to the industry distribution chart, Porto Seguro ranks #239 out of 399 companies in the Insurance industry, placing it in the top 59.9%.
Is Porto Seguro's Beneish M-Score too high?
Porto Seguro's current Beneish M-Score is -2.42. Based on the distribution chart, Porto Seguro ranks #239 out of 399 companies in the Insurance industry, which is below the industry midpoint. Overall, Porto Seguro has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Porto Seguro's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Porto Seguro ranks #239 out of 399 companies for Beneish M-Score. This places Porto Seguro 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 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 Porto Seguro and its competitors. Porto Seguro's current Beneish M-Score is -2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Porto Seguro stock overvalued right now?
Based on GuruFocus' analysis, Porto Seguro (BSP:PSSA3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$45.15, compared to a current price of R$52.19 — trading 15.6% above its estimated fair value. The current Beneish M-Score is -2.42. Porto Seguro's overall GF Score™ is 74/100 with 2 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 Porto Seguro (BSP:PSSA3), the current Beneish M-Score is -2.42 as of Jun. 24, 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 Porto Seguro (BSP:PSSA3) Overvalued in 2026?

Based on GuruFocus' analysis, Porto Seguro stock appears to be overvalued. The current stock price of R$52.19 is trading 15.6% above its estimated GF Value™ of R$45.15. GuruFocus considers Porto Seguro to be Modestly Overvalued.

Key valuation signals for BSP:PSSA3:

  • Beneish M-Score: -2.42
  • GF Value™: R$45.15 vs. price of R$52.19 (15.6% above fair value)
  • GF Score™: 74/100 with 2 warning signs

No single metric tells the full story. See the BSP:PSSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Porto Seguro Business Description

Address Alameda Barao de Piracicaba, No. 740, 11th Floor, Block B, Rosa Garfinkel Building, Campos Eliseos, Sao Paulo, SP, BRA
Porto Seguro SA is one of Brazil's diversified insurance companies that cover vehicles and residential homes. The company operates in many verticals like Insurance, bank, services and other business activities. The company provides a wide range of services including risk underwriting analysis, bike assistance, and surveillance. The company aims to provide products that meet several market needs through the following brands: Porto Seguro, Itau Auto e Residencia, and Azul Seguros and many others.
74GF Score

Get the complete analysis for BSP:PSSA3

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

R$52.19
Price
R$45.15
GF Value