DFYFF (Definity Financial) Beneish M-Score: -4.55 (As of Aug. 07, 2026)

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DFYFF Definity Financial Corp DFYFF
61 GF Score
Price $56.72
GF Value $55.85
Valuation Fairly Valued
! 4 Warning Signs
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What is Definity Financial Beneish M-Score?

Definity Financial DFYFF 61 Beneish M-Score is -4.55 as of Aug. 07, 2026. GuruFocus rates DFYFF with a GF Score™ of 61/100 and a GF Value™ of $55.85 (Fairly Valued). The stock has 4 warning signs investors should review. Among 399 Insurance companies, Definity Financial ranks better 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.

Good Sign:

Beneish M-Score -4.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DFYFF' s Beneish M-Score Range Over the Past 10 Years
Min: -22.03   Med: -3.69   Max: -2.46
Current: -4.55

During the past 6 years, the highest Beneish M-Score of Definity Financial was -2.46. The lowest was -22.03. And the median was -3.69.

DFYFF
61GF Score
Definity Financial Corp DFYFF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Definity Financial 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 Definity Financial 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 * 0.3026+0.528 * 1+0.404 * 1.0025+0.892 * 1.3187+0.115 * 0.9955
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9189+4.679 * -0.01918-0.327 * 6.0156
=-4.55

* 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 (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was $117 Mil.
Revenue was 1362.334 + 1306.924 + 865.458 + 962.195 = $4,497 Mil.
Gross Profit was 1362.334 + 1306.924 + 865.458 + 962.195 = $4,497 Mil.
Total Current Assets was $0 Mil.
Total Assets was $9,598 Mil.
Property, Plant and Equipment(Net PPE) was $79 Mil.
Depreciation, Depletion and Amortization(DDA) was $114 Mil.
Selling, General, & Admin. Expense(SGA) was $129 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,020 Mil.
Net Income was 108.593 + 46.574 + 42.044 + 139.584 = $337 Mil.
Non Operating Income was 50.591 + 40.525 + 41.029 + 44.022 = $176 Mil.
Cash Flow from Operations was 163.674 + -95.117 + 112.577 + 163.582 = $345 Mil.
 Total Receivables was $293 Mil.
Revenue was 856.892 + 820.284 + 786.13 + 946.774 = $3,410 Mil.
Gross Profit was 856.892 + 820.284 + 786.13 + 946.774 = $3,410 Mil.
Total Current Assets was $0 Mil.
Total Assets was $6,076 Mil.
Property, Plant and Equipment(Net PPE) was $65 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $107 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)
=(117.073 / 4496.911) / (293.386 / 3410.08)
=0.026034 / 0.086035
=0.3026

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)
=(3410.08 / 3410.08) / (4496.911 / 4496.911)
=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 + 78.809) / 9598.119) / (1 - (0 + 64.823) / 6075.797)
=0.991789 / 0.989331
=1.0025

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
=4496.911 / 3410.08
=1.3187

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))
=(92.825 / (92.825 + 64.823)) / (114.104 / (114.104 + 78.809))
=0.588812 / 0.591479
=0.9955

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)
=(129.49 / 4496.911) / (106.864 / 3410.08)
=0.028795 / 0.031338
=0.9189

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)
=((1019.952 + 0) / 9598.119) / ((107.331 + 0) / 6075.797)
=0.106266 / 0.017665
=6.0156

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
=(336.795 - 176.167 - 344.716) / 9598.119
=-0.01918

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.

Definity Financial has a M-score of -4.55 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 -4.55 mean?
Definity Financial (DFYFF) has a Beneish M-Score of -4.55 as of Aug. 07, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Definity Financial and its competitors. According to the industry distribution chart, Definity Financial ranks #20 out of 399 companies in the Insurance industry, placing it in the top 5%.
Is Definity Financial's Beneish M-Score too high?
Definity Financial's current Beneish M-Score is -4.55. Based on the distribution chart, Definity Financial ranks #20 out of 399 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Definity Financial has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Definity Financial's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #20 out of 399 companies for Beneish M-Score. This places Definity Financial in the top 5% of its industry — outperforming the majority of peers. 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 Definity Financial and its competitors. Definity Financial's current Beneish M-Score is -4.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definity Financial stock overvalued right now?
Based on GuruFocus' analysis, Definity Financial (DFYFF) is currently considered Fairly Valued. The stock's GF Value™ is $55.85, compared to a current price of $56.72 — trading 1.6% above its estimated fair value. The current Beneish M-Score is -4.55. Definity Financial's overall GF Score™ is 61/100 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 Definity Financial (DFYFF), the current Beneish M-Score is -4.55 as of Aug. 07, 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 Definity Financial (DFYFF) Overvalued in 2026?

Based on GuruFocus' analysis, Definity Financial stock appears to be overvalued. The current stock price of $56.72 is trading 1.6% above its estimated GF Value™ of $55.85. GuruFocus considers Definity Financial to be Fairly Valued.

Key valuation signals for DFYFF:

  • Beneish M-Score: -4.55
  • GF Value™: $55.85 vs. price of $56.72 (1.6% above fair value)
  • GF Score™: 61/100 with 4 warning signs

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

Definity Financial Business Description

Other Exchanges DFY:Canada
Address 111 Westmount Road South, Waterloo, ON, CAN, N2L 2L6
Definity Financial Corp is a property and casualty insurance services provider. It serves the insurance needs of individual, commercial, and farm customers. Its product portfolio includes Personal auto insurance, Personal home insurance, Group auto insurance, Group home insurance, Business property insurance, Business liability insurance, Commercial vehicle insurance, Surety bonds, Oilfield services insurance, General farm insurance, Premier cash crop insurance, and Winery insurance.
61GF Score

Get the complete analysis for DFYFF

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

$56.72
Price
$55.85
GF Value