RM (CHIX:RML) Beneish M-Score: -2.30 (As of Jun. 26, 2026)


CHIX:RML RM PLC CHIX:RML
45 GF Score
Price £0.93
GF Value £0.72
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is RM Beneish M-Score?

RM CHIX:RML -0.96% 45 Beneish M-Score is -2.30 as of Jun. 26, 2026. GuruFocus rates CHIX:RML with a GF Score™ of 45/100 and a GF Value™ of £0.72 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,634 Software companies, RM ranks worse than 64.77% on this metric.

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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHIX:RMl' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26   Med: -2.43   Max: -1.63
Current: -2.3

During the past 13 years, the highest Beneish M-Score of RM was -1.63. The lowest was -3.26. And the median was -2.43.

RM Beneish M-Score Historical Data

* Premium members only.

The historical data trend for RM'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.

RM Beneish M-Score Chart

RM Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.53 -2.39 -3.26 -3.13 -2.30

RM Semi-Annual Data
May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.26 0.00 -3.13 0.00 -2.30

CHIX:RML vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, RM'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.

RM Beneish M-Score vs Software Industry

For the Software industry and Technology sector, RM's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where RM's Beneish M-Score falls into.


CHIX:RML
45GF Score
RM PLC CHIX:RML
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

RM 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 RM 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 * 1.3041+0.528 * 1.0509+0.404 * 1.0467+0.892 * 0.9755+0.115 * 1.2041
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.036868-0.327 * 0.927
=-2.30

* 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 (Nov25) TTM:Last Year (Nov24) TTM:
Total Receivables was £24.5 Mil.
Revenue was £162.1 Mil.
Gross Profit was £61.9 Mil.
Total Current Assets was £48.0 Mil.
Total Assets was £145.1 Mil.
Property, Plant and Equipment(Net PPE) was £19.3 Mil.
Depreciation, Depletion and Amortization(DDA) was £4.1 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £43.0 Mil.
Long-Term Debt & Capital Lease Obligation was £70.1 Mil.
Net Income was £2.2 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £7.5 Mil.
 Total Receivables was £19.3 Mil.
Revenue was £166.1 Mil.
Gross Profit was £66.7 Mil.
Total Current Assets was £48.4 Mil.
Total Assets was £138.5 Mil.
Property, Plant and Equipment(Net PPE) was £19.3 Mil.
Depreciation, Depletion and Amortization(DDA) was £5.2 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £48.2 Mil.
Long-Term Debt & Capital Lease Obligation was £68.3 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)
=(24.53 / 162.069) / (19.283 / 166.143)
=0.151355 / 0.116063
=1.3041

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)
=(66.653 / 166.143) / (61.872 / 162.069)
=0.401179 / 0.381763
=1.0509

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 - (48.044 + 19.343) / 145.114) / (1 - (48.365 + 19.263) / 138.501)
=0.535627 / 0.511715
=1.0467

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
=162.069 / 166.143
=0.9755

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))
=(5.187 / (5.187 + 19.263)) / (4.137 / (4.137 + 19.343))
=0.212147 / 0.176193
=1.2041

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 / 162.069) / (0 / 166.143)
=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)
=((70.135 + 43.049) / 145.114) / ((68.34 + 48.194) / 138.501)
=0.779966 / 0.841395
=0.927

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
=(2.194 - 0 - 7.544) / 145.114
=-0.036868

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.

RM has a M-score of -2.30 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 -2.30 mean?
RM (CHIX:RML) has a Beneish M-Score of -2.30 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on RM and its competitors. According to the industry distribution chart, RM ranks #1706 out of 2634 companies in the Software industry, placing it in the top 64.8%.
Is RM's Beneish M-Score too high?
RM's current Beneish M-Score is -2.30. Based on the distribution chart, RM ranks #1706 out of 2634 companies in the Software industry, which is below the industry midpoint. Overall, RM has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RM's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, RM ranks #1706 out of 2634 companies for Beneish M-Score. This places RM 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 Software company?
A good Beneish M-Score depends on the Software 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 RM and its competitors. RM's current Beneish M-Score is -2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RM stock overvalued right now?
Based on GuruFocus' analysis, RM (CHIX:RML) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.72, compared to a current price of £0.93 — trading 29.3% above its estimated fair value. The current Beneish M-Score is -2.30. RM's overall GF Score™ is 45/100 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 RM (CHIX:RML), the current Beneish M-Score is -2.30 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 RM (CHIX:RML) Overvalued in 2026?

Based on GuruFocus' analysis, RM stock appears to be overvalued. The current stock price of £0.93 is trading 29.3% above its estimated GF Value™ of £0.72. GuruFocus considers RM to be Modestly Overvalued.

Key valuation signals for CHIX:RML:

  • Beneish M-Score: -2.30
  • GF Value™: £0.72 vs. price of £0.93 (29.3% above fair value)
  • GF Score™: 45/100 with 4 warning signs

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

RM Business Description

Other Exchanges RM.:UK
Address 142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE
RM PLC supplies products, services, and solutions to the UK and international education markets. Its activities include the supply of products and software licences, rendering of services, and delivery of its own platform solutions, along with digital assessment and exam marking solutions, IT managed services and connectivity packages, and curriculum-aligned learning resources. The Group is structured into three operating divisions: RM TTS, RM Assessment, and RM Technology. It operates in the UK, Europe, North America, Asia, the Middle East, and the rest of the world, with the majority of revenue coming from the UK and the RM TTS segment.
45GF Score

Get the complete analysis for CHIX:RML

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

£0.93
Price
£0.72
GF Value