FOA (Finance of America) Beneish M-Score: -2.43 (As of Jun. 24, 2026)


FOA Finance of America Companies Inc FOA
48 GF Score
Price $21.80
GF Value $24.60
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Finance of America Beneish M-Score?

Finance of America FOA +4.48% 48 Beneish M-Score is -2.43 as of Jun. 24, 2026. GuruFocus rates FOA with a GF Score™ of 48/100 and a GF Value™ of $24.60 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 483 Credit Services companies, Finance of America ranks better than 63.56% 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FOA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.27   Med: -2.43   Max: -0.22
Current: -2.43

During the past 7 years, the highest Beneish M-Score of Finance of America was -0.22. The lowest was -4.27. And the median was -2.43.

FOA
48GF Score
Finance of America Companies Inc FOA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Finance of America 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 Finance of America 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+0.892 * 1.0027+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1477+4.679 * 0.015994-0.327 * 1.0189
=-2.43

* 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 $0.0 Mil.
Revenue was 95.03 + 57.801 + 47.153 + 160.389 = $360.4 Mil.
Gross Profit was 95.03 + 57.801 + 47.153 + 160.389 = $360.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $31,328.1 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.8 Mil.
Selling, General, & Admin. Expense(SGA) was $235.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $29,856.3 Mil.
Net Income was 17.507 + -10.382 + -9.515 + 34.923 = $32.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -130.862 + -91.443 + -149.748 + -96.473 = $-468.5 Mil.
 Total Receivables was $0.0 Mil.
Revenue was 146.624 + -128.308 + 275.355 + 65.745 = $359.4 Mil.
Gross Profit was 146.624 + -128.308 + 275.355 + 65.745 = $359.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $29,688.9 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.9 Mil.
Selling, General, & Admin. Expense(SGA) was $204.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $27,768.1 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)
=(0 / 360.373) / (0 / 359.416)
=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)
=(359.416 / 359.416) / (360.373 / 360.373)
=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 + 0) / 31328.139) / (1 - (0 + 0) / 29688.856)
=1 / 1
=1

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
=360.373 / 359.416
=1.0027

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))
=(38.927 / (38.927 + 0)) / (38.789 / (38.789 + 0))
=1 / 1
=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)
=(235.565 / 360.373) / (204.701 / 359.416)
=0.65367 / 0.569538
=1.1477

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)
=((29856.295 + 0) / 31328.139) / ((27768.099 + 0) / 29688.856)
=0.953018 / 0.935304
=1.0189

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
=(32.533 - 0 - -468.526) / 31328.139
=0.015994

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.

Finance of America has a M-score of -2.43 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 -2.43 mean?
Finance of America (FOA) has a Beneish M-Score of -2.43 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Finance of America and its competitors. According to the industry distribution chart, Finance of America ranks #176 out of 483 companies in the Credit Services industry, placing it in the top 36.4%.
Is Finance of America's Beneish M-Score too high?
Finance of America's current Beneish M-Score is -2.43. Based on the distribution chart, Finance of America ranks #176 out of 483 companies in the Credit Services industry, which is above the industry midpoint. Overall, Finance of America has a GF Score™ of 48/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Finance of America's Beneish M-Score compare to ANTA and XYF?
According to the Credit Services industry distribution chart, Finance of America ranks #176 out of 483 companies for Beneish M-Score. This puts Finance of America in the upper 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Finance of America and its competitors. Finance of America's current Beneish M-Score is -2.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finance of America stock overvalued right now?
Based on GuruFocus' analysis, Finance of America (FOA) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.60, compared to a current price of $21.80 — trading 11.4% below its estimated fair value. The current Beneish M-Score is -2.43. Finance of America's overall GF Score™ is 48/100 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 Finance of America (FOA), the current Beneish M-Score is -2.43 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 Finance of America (FOA) Overvalued in 2026?

Based on GuruFocus' analysis, Finance of America stock appears to be undervalued. The current stock price of $21.80 is trading 11.4% below its estimated GF Value™ of $24.60. GuruFocus considers Finance of America to be Modestly Undervalued.

Key valuation signals for FOA:

  • Beneish M-Score: -2.43
  • GF Value™: $24.60 vs. price of $21.80 (11.4% below fair value)
  • GF Score™: 48/100 with 4 warning signs

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

Finance of America Business Description

Address 5830 Granite Parkway, Suite 400, Plano, TX, USA, 75024
Finance of America Companies Inc provides home equity-based financing solutions for modern retirement and offers capital markets and portfolio management capabilities to optimize loan distribution to investors. The Company operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment handles loan origination, including HECM and non-agency reverse mortgage loans, generating revenue from origination fees and initial gains, with loans transferred to the Portfolio Management segment. The Portfolio Management segment, which generates the majority of revenue, provides securitization, loan sales, risk management, and asset management services, and earns revenue from net interest income, fair value changes, and servicing-related income.
48GF Score

Get the complete analysis for FOA

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

$21.80
Price
$24.60
GF Value