Mercantile Bank (DHA:MERCANBANK) Beneish M-Score: -2.37 (As of Jun. 30, 2026)


DHA:MERCANBANK Mercantile Bank PLC DHA:MERCANBANK
68 GF Score
Price BDT7.40
GF Value BDT8.36
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Mercantile Bank Beneish M-Score?

Mercantile Bank DHA:MERCANBANK +1.35% 68 Beneish M-Score is -2.37 as of Jun. 30, 2026. GuruFocus rates DHA:MERCANBANK with a GF Score™ of 68/100 and a GF Value™ of BDT8.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,399 Banks companies, Mercantile Bank ranks worse than 55.54% 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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DHA:MERCANBANK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82   Med: -2.49   Max: -2.07
Current: -2.37

During the past 11 years, the highest Beneish M-Score of Mercantile Bank was -2.07. The lowest was -2.82. And the median was -2.49.

DHA:MERCANBANK
68GF Score
Mercantile Bank PLC DHA:MERCANBANK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Mercantile 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 Mercantile 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 * 1.0007+0.892 * 0.884+0.115 * 1.125
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0427+4.679 * 0.027699-0.327 * 0.7565
=-2.37

* 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 3052.549 + 2592.596 + 3554.314 + 3683.372 = BDT12,883 Mil.
Gross Profit was 3052.549 + 2592.596 + 3554.314 + 3683.372 = BDT12,883 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT472,100 Mil.
Property, Plant and Equipment(Net PPE) was BDT3,189 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT528 Mil.
Selling, General, & Admin. Expense(SGA) was BDT80 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT17,958 Mil.
Net Income was 325.291 + -851.48 + 64.182 + 1083.591 = BDT622 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = BDT0 Mil.
Cash Flow from Operations was -17225.912 + 4760.504 + -2166.321 + 2176.706 = BDT-12,455 Mil.
 Total Receivables was BDT0 Mil.
Revenue was 4167.594 + 2710.516 + 3398.812 + 4296.676 = BDT14,574 Mil.
Gross Profit was 4167.594 + 2710.516 + 3398.812 + 4296.676 = BDT14,574 Mil.
Total Current Assets was BDT0 Mil.
Total Assets was BDT450,589 Mil.
Property, Plant and Equipment(Net PPE) was BDT3,336 Mil.
Depreciation, Depletion and Amortization(DDA) was BDT634 Mil.
Selling, General, & Admin. Expense(SGA) was BDT87 Mil.
Total Current Liabilities was BDT0 Mil.
Long-Term Debt & Capital Lease Obligation was BDT22,657 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 / 12882.831) / (0 / 14573.598)
=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)
=(14573.598 / 14573.598) / (12882.831 / 12882.831)
=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 + 3188.983) / 472099.643) / (1 - (0 + 3336.443) / 450589.486)
=0.993245 / 0.992595
=1.0007

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
=12882.831 / 14573.598
=0.884

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))
=(634.156 / (634.156 + 3336.443)) / (527.62 / (527.62 + 3188.983))
=0.159713 / 0.141963
=1.125

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)
=(80.25 / 12882.831) / (87.06 / 14573.598)
=0.006229 / 0.005974
=1.0427

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)
=((17958.41 + 0) / 472099.643) / ((22656.772 + 0) / 450589.486)
=0.038039 / 0.050283
=0.7565

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
=(621.584 - 0 - -12455.023) / 472099.643
=0.027699

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.

Mercantile Bank has a M-score of -2.37 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 -2.37 mean?
Mercantile Bank (DHA:MERCANBANK) has a Beneish M-Score of -2.37 as of Jun. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Mercantile Bank and its competitors. According to the industry distribution chart, Mercantile Bank ranks #777 out of 1399 companies in the Banks industry, placing it in the top 55.5%.
Is Mercantile Bank's Beneish M-Score too high?
Mercantile Bank's current Beneish M-Score is -2.37. Based on the distribution chart, Mercantile Bank ranks #777 out of 1399 companies in the Banks industry, which is below the industry midpoint. Overall, Mercantile Bank has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Mercantile Bank ranks #777 out of 1399 companies for Beneish M-Score. This places Mercantile Bank 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 Mercantile Bank and its competitors. Mercantile Bank's current Beneish M-Score is -2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Bank (DHA:MERCANBANK) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT8.36, compared to a current price of BDT7.40 — trading 11.5% below its estimated fair value. The current Beneish M-Score is -2.37. Mercantile Bank's overall GF Score™ is 68/100 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 Mercantile Bank (DHA:MERCANBANK), the current Beneish M-Score is -2.37 as of Jun. 30, 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 Mercantile Bank (DHA:MERCANBANK) Overvalued in 2026?

Based on GuruFocus' analysis, Mercantile Bank stock appears to be undervalued. The current stock price of BDT7.40 is trading 11.5% below its estimated GF Value™ of BDT8.36. GuruFocus considers Mercantile Bank to be Modestly Undervalued.

Key valuation signals for DHA:MERCANBANK:

  • Beneish M-Score: -2.37
  • GF Value™: BDT8.36 vs. price of BDT7.40 (11.5% below fair value)
  • GF Score™: 68/100 with 3 warning signs

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

Mercantile Bank Business Description

Address 61, Dilkusha Commercial Area, Dhaka, BGD
Mercantile Bank PLC is a commercial bank that engages in providing banking and financial services. It offers a range of services such as SME financing, Retail Banking, Corporate Banking, Foreign Trade, NRB banking, Treasury instruments services, and E-banking, among others. Its operating segments comprise Commercial Banking including Off-shore Banking Units, Islamic Banking Window Operations, Mercantile Bank Securities Limited; MBL Assets Management Limited, and Mercantile Exchange House (UK) Ltd.
68GF Score

Get the complete analysis for DHA:MERCANBANK

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

BDT7.40
Price
BDT8.36
GF Value