Islamic Arab Insurance Co (DFM:SALAMA) Beneish M-Score: -1.95 (As of Jun. 24, 2026)


DFM:SALAMA Islamic Arab Insurance Co DFM:SALAMA
42 GF Score
Price د.إ0.76
GF Value د.إ0.83
Valuation Fairly Valued
! 2 Warning Signs
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What is Islamic Arab Insurance Co Beneish M-Score?

Islamic Arab Insurance Co DFM:SALAMA +1.20% 42 Beneish M-Score is -1.95 as of Jun. 24, 2026. GuruFocus rates DFM:SALAMA with a GF Score™ of 42/100 and a GF Value™ of د.إ0.83 (Fairly Valued). The stock has 2 warning signs investors should review. Among 399 Insurance companies, Islamic Arab Insurance Co ranks worse than 86.72% 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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DFM:SALAMA' s Beneish M-Score Range Over the Past 10 Years
Min: -5.83   Med: -2.72   Max: -0.65
Current: -1.95

During the past 13 years, the highest Beneish M-Score of Islamic Arab Insurance Co was -0.65. The lowest was -5.83. And the median was -2.72.

DFM:SALAMA
42GF Score
Islamic Arab Insurance Co DFM:SALAMA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Islamic Arab Insurance Co 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 Islamic Arab Insurance Co 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 * 1.0384+0.528 * 1+0.404 * 1.0008+0.892 * 1.1875+0.115 * 1.2097
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.054111-0.327 * 0.8616
=-1.95

* 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 د.إ34.3 Mil.
Revenue was 125.767 + 205.83 + 334.02 + 291.117 = د.إ956.7 Mil.
Gross Profit was 125.767 + 205.83 + 334.02 + 291.117 = د.إ956.7 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ3,224.9 Mil.
Property, Plant and Equipment(Net PPE) was د.إ51.1 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ5.6 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ0.0 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ5.4 Mil.
Net Income was 10.873 + -2.484 + 0.804 + 6.667 = د.إ15.9 Mil.
Non Operating Income was 5.293 + 0 + 0 + 0 = د.إ5.3 Mil.
Cash Flow from Operations was -177.881 + -4.552 + -29.609 + 48.105 = د.إ-163.9 Mil.
 Total Receivables was د.إ27.8 Mil.
Revenue was 192.104 + -32.265 + 303.443 + 342.412 = د.إ805.7 Mil.
Gross Profit was 192.104 + -32.265 + 303.443 + 342.412 = د.إ805.7 Mil.
Total Current Assets was د.إ0.0 Mil.
Total Assets was د.إ3,164.5 Mil.
Property, Plant and Equipment(Net PPE) was د.إ52.6 Mil.
Depreciation, Depletion and Amortization(DDA) was د.إ7.1 Mil.
Selling, General, & Admin. Expense(SGA) was د.إ0.0 Mil.
Total Current Liabilities was د.إ0.0 Mil.
Long-Term Debt & Capital Lease Obligation was د.إ6.1 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)
=(34.262 / 956.734) / (27.786 / 805.694)
=0.035811 / 0.034487
=1.0384

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)
=(805.694 / 805.694) / (956.734 / 956.734)
=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 + 51.148) / 3224.914) / (1 - (0 + 52.623) / 3164.488)
=0.98414 / 0.983371
=1.0008

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
=956.734 / 805.694
=1.1875

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))
=(7.102 / (7.102 + 52.623)) / (5.576 / (5.576 + 51.148))
=0.118912 / 0.098301
=1.2097

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 / 956.734) / (0 / 805.694)
=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)
=((5.359 + 0) / 3224.914) / ((6.103 + 0) / 3164.488)
=0.001662 / 0.001929
=0.8616

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
=(15.86 - 5.293 - -163.937) / 3224.914
=0.054111

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.

Islamic Arab Insurance Co has a M-score of -1.95 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 -1.95 mean?
Islamic Arab Insurance Co (DFM:SALAMA) has a Beneish M-Score of -1.95 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Islamic Arab Insurance Co and its competitors. According to the industry distribution chart, Islamic Arab Insurance Co ranks #346 out of 399 companies in the Insurance industry, placing it in the top 86.7%.
Is Islamic Arab Insurance Co's Beneish M-Score too high?
Islamic Arab Insurance Co's current Beneish M-Score is -1.95. Based on the distribution chart, Islamic Arab Insurance Co ranks #346 out of 399 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Islamic Arab Insurance Co has a GF Score™ of 42/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Islamic Arab Insurance Co's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Islamic Arab Insurance Co ranks #346 out of 399 companies for Beneish M-Score. This places Islamic Arab Insurance Co 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 Islamic Arab Insurance Co and its competitors. Islamic Arab Insurance Co's current Beneish M-Score is -1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Islamic Arab Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Islamic Arab Insurance Co (DFM:SALAMA) is currently considered Fairly Valued. The stock's GF Value™ is د.إ0.83, compared to a current price of د.إ0.76 — trading 8.6% below its estimated fair value. The current Beneish M-Score is -1.95. Islamic Arab Insurance Co's overall GF Score™ is 42/100 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 Islamic Arab Insurance Co (DFM:SALAMA), the current Beneish M-Score is -1.95 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 Islamic Arab Insurance Co (DFM:SALAMA) Overvalued in 2026?

Based on GuruFocus' analysis, Islamic Arab Insurance Co stock appears to be undervalued. The current stock price of د.إ0.76 is trading 8.6% below its estimated GF Value™ of د.إ0.83. GuruFocus considers Islamic Arab Insurance Co to be Fairly Valued.

Key valuation signals for DFM:SALAMA:

  • Beneish M-Score: -1.95
  • GF Value™: د.إ0.83 vs. price of د.إ0.76 (8.6% below fair value)
  • GF Score™: 42/100 with 2 warning signs

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

Islamic Arab Insurance Co Business Description

Address Sheikh Rashid Road, Block A, 4th Floor, Spectrum Building, P.O. Box 10214, Oud Metha, Dubai, ARE
Islamic Arab Insurance Co is a Takaful (Islamic Insurance) and Re-Takaful insurance company focusing on providing sharia-compliant takaful solutions to both institutional and individual customers. It offers various insurance products, such as health insurance, auto insurance, different types of life insurance, home insurance, marine insurance, employee benefits plans, savings plans, and property and casualty insurance products, among others. The Group has two segments: General Takaful and Life Takaful. Maximum revenue is generated from the General Takaful business, incorporating all classes of general takaful, including fire, marine, motor, general accident, engineering, and medical. Geographically, the Group derives maximum revenue from Asia, and the rest from Africa.
42GF Score

Get the complete analysis for DFM:SALAMA

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

د.إ0.76
Price
د.إ0.83
GF Value