Pennant Park Investment (FRA:12P) Beneish M-Score: -2.71 (As of Jun. 25, 2026)


FRA:12P Pennant Park Investment Corp FRA:12P
16 GF Score
Price €3.00
! 2 Warning Signs
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What is Pennant Park Investment Beneish M-Score?

Pennant Park Investment FRA:12P +3.13% 16 Beneish M-Score is -2.71 as of Jun. 25, 2026. GuruFocus rates FRA:12P with a GF Score™ of 16/100. The stock has 2 warning signs investors should review. Among 955 Asset Management companies, Pennant Park Investment ranks better than 72.88% 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:12P' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Med: -2.32   Max: 21.12
Current: -2.71

During the past 13 years, the highest Beneish M-Score of Pennant Park Investment was 21.12. The lowest was -3.72. And the median was -2.32.

FRA:12P
16GF Score
Pennant Park Investment Corp FRA:12P
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Pennant Park Investment 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 Pennant Park Investment 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 * 1.8452+0.528 * 1+0.404 * 1+0.892 * 0.4174+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8728+4.679 * -0.080195-0.327 * 0.941
=-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 €8.12 Mil.
Revenue was -0.371 + 12.65 + 0.792 + 8.948 = €22.02 Mil.
Gross Profit was -0.371 + 12.65 + 0.792 + 8.948 = €22.02 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €1,088.22 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €4.77 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €507.96 Mil.
Net Income was -2.015 + 7.648 + -0.821 + 7.066 = €11.88 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was 31.47 + 114.9 + -91.834 + 44.612 = €99.15 Mil.
 Total Receivables was €10.54 Mil.
Revenue was 11.046 + 17.735 + 18.43 + 5.538 = €52.75 Mil.
Gross Profit was 11.046 + 17.735 + 18.43 + 5.538 = €52.75 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €1,163.45 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.00 Mil.
Selling, General, & Admin. Expense(SGA) was €6.10 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €577.14 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)
=(8.12 / 22.019) / (10.542 / 52.749)
=0.368772 / 0.199852
=1.8452

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)
=(52.749 / 52.749) / (22.019 / 22.019)
=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) / 1088.224) / (1 - (0 + 0) / 1163.446)
=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
=22.019 / 52.749
=0.4174

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 / (0 + 0)) / (0 / (0 + 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)
=(4.772 / 22.019) / (6.104 / 52.749)
=0.216722 / 0.115718
=1.8728

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)
=((507.958 + 0) / 1088.224) / ((577.144 + 0) / 1163.446)
=0.466777 / 0.496064
=0.941

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
=(11.878 - 0 - 99.148) / 1088.224
=-0.080195

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.

Pennant Park Investment 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 -2.71 mean?
Pennant Park Investment (FRA:12P) has a Beneish M-Score of -2.71 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Pennant Park Investment and its competitors. According to the industry distribution chart, Pennant Park Investment ranks #259 out of 955 companies in the Asset Management industry, placing it in the top 27.1%.
Is Pennant Park Investment's Beneish M-Score too high?
Pennant Park Investment's current Beneish M-Score is -2.71. Based on the distribution chart, Pennant Park Investment ranks #259 out of 955 companies in the Asset Management industry, which is above the industry midpoint. Overall, Pennant Park Investment has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Pennant Park Investment's Beneish M-Score compare to NUW and CPZ?
According to the Asset Management industry distribution chart, Pennant Park Investment ranks #259 out of 955 companies for Beneish M-Score. This puts Pennant Park Investment 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 an Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 Pennant Park Investment and its competitors. Pennant Park Investment's current Beneish M-Score is -2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennant Park Investment stock overvalued right now?
Pennant Park Investment (FRA:12P) has a current Beneish M-Score of -2.71. The current Beneish M-Score is -2.71. Pennant Park Investment's overall GF Score™ is 16/100 with 2 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 Pennant Park Investment (FRA:12P), the current Beneish M-Score is -2.71 as of Jun. 25, 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.

Pennant Park Investment Business Description

Other Exchanges PNNT:USA
Address 1691 Michigan Avenue, Miami Beach, FL, USA, 33139
Pennant Park Investment Corp is a closed-end, non-diversified investment company. Its investment objective is to generate current income and capital appreciation also seeking to preserve capital through debt and equity investments. The company focuses on investing in United States middle-market companies that offer attractive risk-reward to investors and to create a diversified portfolio that includes senior secured debt, mezzanine debt, and equity investments. It generates majority of its revenue from interest and dividends received from investments made.
16GF Score

Get the complete analysis for FRA:12P

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

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