COFS (ChoiceOne Financial Services) Beneish M-Score: -1.71 (As of Jun. 26, 2026)


COFS ChoiceOne Financial Services Inc COFS
62 GF Score
Price $32.70
GF Value $29.24
Valuation Modestly Overvalued
! 4 Warning Signs
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What is ChoiceOne Financial Services Beneish M-Score?

ChoiceOne Financial Services COFS -0.97% 62 Beneish M-Score is -1.71 as of Jun. 26, 2026. GuruFocus rates COFS with a GF Score™ of 62/100 and a GF Value™ of $29.24 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,397 Banks companies, ChoiceOne Financial Services ranks worse than 94.99% 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.

Warning Sign:

Beneish M-Score -1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

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

COFS' s Beneish M-Score Range Over the Past 10 Years
Min: -16.08   Med: -2.45   Max: -1.56
Current: -1.71

During the past 13 years, the highest Beneish M-Score of ChoiceOne Financial Services was -1.56. The lowest was -16.08. And the median was -2.45.

COFS
62GF Score
ChoiceOne Financial Services Inc COFS
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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ChoiceOne Financial Services 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 ChoiceOne Financial Services 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 * 0.9992+0.892 * 1.6769+0.115 * 0.7445
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9302+4.679 * 0.003358-0.327 * 0.4845
=-1.71

* 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 $0.0 Mil.
Revenue was 42.457 + 42.937 + 44.741 + 42.825 = $173.0 Mil.
Gross Profit was 42.457 + 42.937 + 44.741 + 42.825 = $173.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,394.6 Mil.
Property, Plant and Equipment(Net PPE) was $48.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.2 Mil.
Selling, General, & Admin. Expense(SGA) was $59.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $48.6 Mil.
Net Income was 13.704 + 13.867 + 14.681 + 13.534 = $55.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -0.177 + 14.034 + 15.294 + 11.879 = $41.0 Mil.
 Total Receivables was $0.0 Mil.
Revenue was 31.233 + 24.343 + 25.115 + 22.454 = $103.1 Mil.
Gross Profit was 31.233 + 24.343 + 25.115 + 22.454 = $103.1 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,305.4 Mil.
Property, Plant and Equipment(Net PPE) was $44.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.9 Mil.
Selling, General, & Admin. Expense(SGA) was $38.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $98.2 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 / 172.96) / (0 / 103.145)
=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)
=(103.145 / 103.145) / (172.96 / 172.96)
=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 + 48.67) / 4394.565) / (1 - (0 + 44.284) / 4305.391)
=0.988925 / 0.989714
=0.9992

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
=172.96 / 103.145
=1.6769

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))
=(12.904 / (12.904 + 44.284)) / (21.165 / (21.165 + 48.67))
=0.225642 / 0.303072
=0.7445

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)
=(59.593 / 172.96) / (38.206 / 103.145)
=0.344548 / 0.370411
=0.9302

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)
=((48.552 + 0) / 4394.565) / ((98.186 + 0) / 4305.391)
=0.011048 / 0.022805
=0.4845

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
=(55.786 - 0 - 41.03) / 4394.565
=0.003358

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.

ChoiceOne Financial Services has a M-score of -1.71 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.71 mean?
ChoiceOne Financial Services (COFS) has a Beneish M-Score of -1.71 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on ChoiceOne Financial Services and its competitors. According to the industry distribution chart, ChoiceOne Financial Services ranks #1327 out of 1397 companies in the Banks industry, placing it in the top 95%.
Is ChoiceOne Financial Services' Beneish M-Score too high?
ChoiceOne Financial Services' current Beneish M-Score is -1.71. Based on the distribution chart, ChoiceOne Financial Services ranks #1327 out of 1397 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, ChoiceOne Financial Services has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ChoiceOne Financial Services' Beneish M-Score compare to FFMR and FBIZ?
According to the Banks industry distribution chart, ChoiceOne Financial Services ranks #1327 out of 1397 companies for Beneish M-Score. This places ChoiceOne Financial Services 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 ChoiceOne Financial Services and its competitors. ChoiceOne Financial Services's current Beneish M-Score is -1.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ChoiceOne Financial Services stock overvalued right now?
Based on GuruFocus' analysis, ChoiceOne Financial Services (COFS) is currently considered Modestly Overvalued. The stock's GF Value™ is $29.24, compared to a current price of $32.70 — trading 11.8% above its estimated fair value. The current Beneish M-Score is -1.71. ChoiceOne Financial Services' overall GF Score™ is 62/100 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 ChoiceOne Financial Services (COFS), the current Beneish M-Score is -1.71 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 ChoiceOne Financial Services (COFS) Overvalued in 2026?

Based on GuruFocus' analysis, ChoiceOne Financial Services stock appears to be overvalued. The current stock price of $32.70 is trading 11.8% above its estimated GF Value™ of $29.24. GuruFocus considers ChoiceOne Financial Services to be Modestly Overvalued.

Key valuation signals for COFS:

  • Beneish M-Score: -1.71
  • GF Value™: $29.24 vs. price of $32.70 (11.8% above fair value)
  • GF Score™: 62/100 with 4 warning signs

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

ChoiceOne Financial Services Business Description

Address 109 East Division Street, Sparta, MI, USA, 49345
ChoiceOne Financial Services Inc is a full-service banking institution. It is engaged in the business of providing personal and business banking solutions, borrowing solutions, and treasury notes and bonds services. The bank's product and services portfolio consist of time, savings and demand deposits, safe deposit services, automated transaction machine services, commercial and consumer loans, commercial lending to business, industry, agricultural, construction, inventory, and real estate categories. Its primary market area is Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan, and Lapeer, Macomb, and St. Clair counties in southeastern Michigan in the communities where the Bank's respective offices are located.
62GF Score

Get the complete analysis for COFS

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

$32.70
Price
$29.24
GF Value