Old Mutual (FRA:2KS) Beneish M-Score: -2.70 (As of Jun. 25, 2026)


FRA:2KS Old Mutual Ltd FRA:2KS
76 GF Score
Price €0.68
GF Value €1.02
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Old Mutual Beneish M-Score?

Old Mutual FRA:2KS -1.46% 76 Beneish M-Score is -2.70 as of Jun. 25, 2026. GuruFocus rates FRA:2KS with a GF Score™ of 76/100 and a GF Value™ of €1.02 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 86 Diversified Financial Services companies, Old Mutual ranks better than 65.12% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:2KS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Med: -2.49   Max: 184
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Old Mutual was 184.00. The lowest was -3.61. And the median was -2.49.

FRA:2KS
76GF Score
Old Mutual Ltd FRA:2KS
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Old Mutual 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 Old Mutual 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 * 0.2981+0.528 * 1+0.404 * 1.0006+0.892 * 1.3114+0.115 * 0.6888
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8349+4.679 * 0.007953-0.327 * 0.7645
=-2.74

* 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 €863 Mil.
Revenue was €13,882 Mil.
Gross Profit was €13,882 Mil.
Total Current Assets was €0 Mil.
Total Assets was €69,401 Mil.
Property, Plant and Equipment(Net PPE) was €456 Mil.
Depreciation, Depletion and Amortization(DDA) was €114 Mil.
Selling, General, & Admin. Expense(SGA) was €107 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,118 Mil.
Net Income was €427 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €-125 Mil.
 Total Receivables was €2,208 Mil.
Revenue was €10,585 Mil.
Gross Profit was €10,585 Mil.
Total Current Assets was €0 Mil.
Total Assets was €64,726 Mil.
Property, Plant and Equipment(Net PPE) was €464 Mil.
Depreciation, Depletion and Amortization(DDA) was €74 Mil.
Selling, General, & Admin. Expense(SGA) was €97 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,364 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)
=(863.147 / 13882.199) / (2207.725 / 10585.402)
=0.062177 / 0.208563
=0.2981

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)
=(10585.402 / 10585.402) / (13882.199 / 13882.199)
=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 + 455.597) / 69401.002) / (1 - (0 + 464.39) / 64725.99)
=0.993435 / 0.992825
=1.0006

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
=13882.199 / 10585.402
=1.3114

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))
=(74.384 / (74.384 + 464.39)) / (114.204 / (114.204 + 455.597))
=0.138062 / 0.200428
=0.6888

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)
=(106.644 / 13882.199) / (97.397 / 10585.402)
=0.007682 / 0.009201
=0.8349

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)
=((1118.342 + 0) / 69401.002) / ((1364.286 + 0) / 64725.99)
=0.016114 / 0.021078
=0.7645

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
=(426.576 - 0 - -125.365) / 69401.002
=0.007953

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.

Old Mutual has a M-score of -2.74 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 -2.70 mean?
Old Mutual (FRA:2KS) has a Beneish M-Score of -2.70 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Old Mutual and its competitors. According to the industry distribution chart, Old Mutual ranks #30 out of 86 companies in the Diversified Financial Services industry, placing it in the top 34.9%.
Is Old Mutual's Beneish M-Score too high?
Old Mutual's current Beneish M-Score is -2.70. Based on the distribution chart, Old Mutual ranks #30 out of 86 companies in the Diversified Financial Services industry, which is above the industry midpoint. Overall, Old Mutual has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Old Mutual's Beneish M-Score compare to FRHC and VOYA?
According to the Diversified Financial Services industry distribution chart, Old Mutual ranks #30 out of 86 companies for Beneish M-Score. This puts Old Mutual 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 Diversified Financial Services company?
A good Beneish M-Score depends on the Diversified Financial 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 Old Mutual and its competitors. Old Mutual's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Old Mutual stock overvalued right now?
Based on GuruFocus' analysis, Old Mutual (FRA:2KS) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.02, compared to a current price of €0.68 — trading 33.8% below its estimated fair value. The current Beneish M-Score is -2.70. Old Mutual's overall GF Score™ is 76/100 with 1 warning sign 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 Old Mutual (FRA:2KS), the current Beneish M-Score is -2.70 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.

Is Old Mutual (FRA:2KS) Overvalued in 2026?

Based on GuruFocus' analysis, Old Mutual stock appears to be undervalued. The current stock price of €0.68 is trading 33.8% below its estimated GF Value™ of €1.02. GuruFocus considers Old Mutual to be Significantly Undervalued.

Key valuation signals for FRA:2KS:

  • Beneish M-Score: -2.70
  • GF Value™: €1.02 vs. price of €0.68 (33.8% below fair value)
  • GF Score™: 76/100 with 1 warning sign

No single metric tells the full story. See the FRA:2KS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Old Mutual Business Description

Address Mutualpark, Jan Smuts Drive, Pinelands, Cape Town, WC, ZAF, 7405
Old Mutual Ltd provides financial services that include wealth management, banking, asset management, and insurance. The firm is organized into the following operational segments: Old Mutual Life and Savings, Old Mutual Investments, Old Mutual Banking, Old Mutual Insure, Old Mutual Africa Regions, and Other Group Activities. The company generates key revenue from Old Mutual Life and Savings, which comprises retail and corporate segments offering risk, savings, investment, lending, and income products across diverse markets. This includes simple financial solutions for low- to lower-middle-income customers, holistic financial advice and tailored investment offerings for middle-income and high-net-worth individuals, and employee benefits and business solutions for SMEs.
76GF Score

Get the complete analysis for FRA:2KS

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

€0.68
Price
€1.02
GF Value