FCRM (Franklin Credit Management) Beneish M-Score: -2.26 (As of Sep. 09, 2026)

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FCRM Franklin Credit Management Corp FCRM
22 GF Score
Price $0.19
GF Value $0.08
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Franklin Credit Management Beneish M-Score?

Franklin Credit Management FCRM 22 Beneish M-Score is -2.26 as of Sep. 09, 2026. GuruFocus rates FCRM with a GF Score™ of 22/100 and a GF Value™ of $0.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,392 Banks companies, Franklin Credit Management ranks worse than 73.2% 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 -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FCRM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Med: -2.26   Max: -1.43
Current: -2.26

During the past 11 years, the highest Beneish M-Score of Franklin Credit Management was -1.43. The lowest was -3.85. And the median was -2.26.

FCRM
22GF Score
Franklin Credit Management Corp FCRM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Franklin Credit Management 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 Franklin Credit Management 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 * 1.1497+0.528 * 1+0.404 * 0.9605+0.892 * 0.8588+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1363+4.679 * 0.064439-0.327 * 1.1725
=-2.26

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $2.43 Mil.
Revenue was $6.30 Mil.
Gross Profit was $6.30 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $12.48 Mil.
Property, Plant and Equipment(Net PPE) was $2.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $2.51 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $3.31 Mil.
Net Income was $-2.84 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $-3.65 Mil.
 Total Receivables was $2.46 Mil.
Revenue was $7.34 Mil.
Gross Profit was $7.34 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $16.61 Mil.
Property, Plant and Equipment(Net PPE) was $3.39 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.04 Mil.
Selling, General, & Admin. Expense(SGA) was $2.57 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $3.76 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)
=(2.428 / 6.301) / (2.459 / 7.337)
=0.385336 / 0.335151
=1.1497

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)
=(7.337 / 7.337) / (6.301 / 6.301)
=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 + 2.935) / 12.477) / (1 - (0 + 3.385) / 16.611)
=0.764767 / 0.796219
=0.9605

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
=6.301 / 7.337
=0.8588

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))
=(0.035 / (0.035 + 3.385)) / (0 / (0 + 2.935))
=0.010234 / 0
=1

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)
=(2.509 / 6.301) / (2.571 / 7.337)
=0.398191 / 0.350416
=1.1363

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)
=((3.314 + 0) / 12.477) / ((3.763 + 0) / 16.611)
=0.265609 / 0.226537
=1.1725

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
=(-2.844 - 0 - -3.648) / 12.477
=0.064439

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.

Franklin Credit Management has a M-score of -2.26 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 -2.26 mean?
Franklin Credit Management (FCRM) has a Beneish M-Score of -2.26 as of Sep. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Franklin Credit Management and its competitors. According to the industry distribution chart, Franklin Credit Management ranks #1019 out of 1392 companies in the Banks industry, placing it in the top 73.2%.
Is Franklin Credit Management's Beneish M-Score too high?
Franklin Credit Management's current Beneish M-Score is -2.26. Based on the distribution chart, Franklin Credit Management ranks #1019 out of 1392 companies in the Banks industry, which is below the industry midpoint. Overall, Franklin Credit Management has a GF Score™ of 22/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Franklin Credit Management's Beneish M-Score compare to LFLS and RKT?
According to the Banks industry distribution chart, Franklin Credit Management ranks #1019 out of 1392 companies for Beneish M-Score. This places Franklin Credit Management 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 Franklin Credit Management and its competitors. Franklin Credit Management's current Beneish M-Score is -2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Credit Management stock overvalued right now?
Based on GuruFocus' analysis, Franklin Credit Management (FCRM) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.08, compared to a current price of $0.19 — trading 136.3% above its estimated fair value. The current Beneish M-Score is -2.26. Franklin Credit Management's overall GF Score™ is 22/100 with 5 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 Franklin Credit Management (FCRM), the current Beneish M-Score is -2.26 as of Sep. 09, 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 Franklin Credit Management (FCRM) Overvalued in 2026?

Based on GuruFocus' analysis, Franklin Credit Management stock appears to be overvalued. The current stock price of $0.19 is trading 136.3% above its estimated GF Value™ of $0.08. GuruFocus considers Franklin Credit Management to be Significantly Overvalued.

Key valuation signals for FCRM:

  • Beneish M-Score: -2.26
  • GF Value™: $0.08 vs. price of $0.19 (136.3% above fair value)
  • GF Score™: 22/100 with 5 warning signs

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

Franklin Credit Management Business Description

Address 101 Hudson Street, 24th floor, Jersey, NJ, USA, 07302
Franklin Credit Management Corp is a specialty consumer finance company mainly in the servicing and resolution of performing, reperforming, nonperforming residential mortgage loans, including specialized loan recovery and collection servicing, and in the analysis, pricing and acquisition of residential mortgage portfolios for third parties. Its servicing operations including specialized loan recovery and collecting services, consist of a call letter staffed by professionals skilled in customer service, Collection, loan mitigation, foreclosure, bankruptcy, real estate property management, deficiency recovery and judgement processing.
22GF Score

Get the complete analysis for FCRM

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

$0.19
Price
$0.08
GF Value