Al Arafah Islami Bank (DHA:ALARABANK) Beneish M-Score: -2.73 (As of Jun. 29, 2026)


DHA:ALARABANK Al Arafah Islami Bank PLC DHA:ALARABANK
69 GF Score
Price BDT15.20
GF Value BDT16.70
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Al Arafah Islami Bank Beneish M-Score?

Al Arafah Islami Bank DHA:ALARABANK +6.29% 69 Beneish M-Score is -2.73 as of Jun. 29, 2026. GuruFocus rates DHA:ALARABANK with a GF Score™ of 69/100 and a GF Value™ of BDT16.70 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,399 Banks companies, Al Arafah Islami Bank ranks better than 87.92% 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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:ALARABANK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98   Med: -2.54   Max: 0.93
Current: -2.73

During the past 11 years, the highest Beneish M-Score of Al Arafah Islami Bank was 0.93. The lowest was -2.98. And the median was -2.54.

DHA:ALARABANK
69GF Score
Al Arafah Islami Bank PLC DHA:ALARABANK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Al Arafah Islami Bank 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 Al Arafah Islami Bank 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 * 1.0022+0.892 * 0.782+0.115 * 0.8367
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1233+4.679 * -0.017967-0.327 * 0.7986
=-2.73

* 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 BDT0 Mil.
Revenue was 3966.2 + 3722.193 + 3104.047 + 4017.904 = BDT14,810 Mil.
Gross Profit was 3966.2 + 3722.193 + 3104.047 + 4017.904 = BDT14,810 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT645,639 Mil.
Property, Plant and Equipment(Net PPE) was BDT4,449 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,072 Mil.
Selling, General, & Admin. Expense(SGA) was BDT286 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT11,398 Mil.
Net Income was 161.973 + 464.595 + -562.94 + 903.783 = BDT967 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was 132.686 + 2090.378 + -6953.372 + 17298.183 = BDT12,568 Mil.
 Total Receivables was BDT0 Mil.
Revenue was 3753.369 + 4472.202 + 4771.467 + 5941.042 = BDT18,938 Mil.
Gross Profit was 3753.369 + 4472.202 + 4771.467 + 5941.042 = BDT18,938 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT633,313 Mil.
Property, Plant and Equipment(Net PPE) was BDT5,720 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT1,109 Mil.
Selling, General, & Admin. Expense(SGA) was BDT326 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT14,000 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 / 14810.344) / (0 / 18938.08)
=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)
=(18938.08 / 18938.08) / (14810.344 / 14810.344)
=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 + 4448.607) / 645638.673) / (1 - (0 + 5720.15) / 633312.698)
=0.99311 / 0.990968
=1.0022

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
=14810.344 / 18938.08
=0.782

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))
=(1109.426 / (1109.426 + 5720.15)) / (1071.804 / (1071.804 + 4448.607))
=0.162444 / 0.194153
=0.8367

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)
=(286.14 / 14810.344) / (325.718 / 18938.08)
=0.01932 / 0.017199
=1.1233

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)
=((11398 + 0) / 645638.673) / ((14000 + 0) / 633312.698)
=0.017654 / 0.022106
=0.7986

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
=(967.411 - 0 - 12567.875) / 645638.673
=-0.017967

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.

Al Arafah Islami Bank has a M-score of -2.73 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 -2.73 mean?
Al Arafah Islami Bank (DHA:ALARABANK) has a Beneish M-Score of -2.73 as of Jun. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Al Arafah Islami Bank and its competitors. According to the industry distribution chart, Al Arafah Islami Bank ranks #169 out of 1399 companies in the Banks industry, placing it in the top 12.1%.
Is Al Arafah Islami Bank's Beneish M-Score too high?
Al Arafah Islami Bank's current Beneish M-Score is -2.73. Based on the distribution chart, Al Arafah Islami Bank ranks #169 out of 1399 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Al Arafah Islami Bank has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Al Arafah Islami Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Al Arafah Islami Bank ranks #169 out of 1399 companies for Beneish M-Score. This places Al Arafah Islami Bank in the top 12% 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 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 Al Arafah Islami Bank and its competitors. Al Arafah Islami Bank's current Beneish M-Score is -2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Arafah Islami Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Arafah Islami Bank (DHA:ALARABANK) is currently considered Fairly Valued. The stock's GF Value™ is BDT16.70, compared to a current price of BDT15.20 — trading 9% below its estimated fair value. The current Beneish M-Score is -2.73. Al Arafah Islami Bank's overall GF Score™ is 69/100 with 3 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 Al Arafah Islami Bank (DHA:ALARABANK), the current Beneish M-Score is -2.73 as of Jun. 29, 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 Al Arafah Islami Bank (DHA:ALARABANK) Overvalued in 2026?

Based on GuruFocus' analysis, Al Arafah Islami Bank stock appears to be undervalued. The current stock price of BDT15.20 is trading 9% below its estimated GF Value™ of BDT16.70. GuruFocus considers Al Arafah Islami Bank to be Fairly Valued.

Key valuation signals for DHA:ALARABANK:

  • Beneish M-Score: -2.73
  • GF Value™: BDT16.70 vs. price of BDT15.20 (9% below fair value)
  • GF Score™: 69/100 with 3 warning signs

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

Al Arafah Islami Bank Business Description

Address 63, Purana Paltan, Daynik Bangla Mor, Al-Arafah Tower, 1st & 2nd Floor, Dhaka, BGD, 1000
Al Arafah Islami Bank PLC is a Bangladesh-based company engaged in providing commercial banking, consumer banking, trade finance, and related custody and clearing services. Its deposit products include current, saving, term, and short notice deposits; and marriage savings investment schemes, among others. The principal activities of the Bank are to provide a comprehensive range of financial services including commercial banking, consumer banking, trade finance and other related custody and clearing services to the customers. Geographically, it operates only in Bangladesh. It serves Agriculture; Construction; Power, Gas, Water and Sanitary Services; Transport and communication; Trade services; Storage; Professional & Miscellaneous services and other sectors.
69GF Score

Get the complete analysis for DHA:ALARABANK

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

BDT15.20
Price
BDT16.70
GF Value