Universal Insurance Holdings (FRA:5UI) Beneish M-Score: -3.17 (As of Jun. 24, 2026)


FRA:5UI Universal Insurance Holdings Inc FRA:5UI
53 GF Score
Price €33.40
GF Value €19.39
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Universal Insurance Holdings Beneish M-Score?

Universal Insurance Holdings FRA:5UI +0.60% 53 Beneish M-Score is -3.17 as of Jun. 24, 2026. GuruFocus rates FRA:5UI with a GF Score™ of 53/100 and a GF Value™ of €19.39 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 399 Insurance companies, Universal Insurance Holdings ranks better than 88.47% 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 -3.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:5UI' s Beneish M-Score Range Over the Past 10 Years
Min: -7.34   Med: -2.49   Max: 1.71
Current: -3.17

During the past 13 years, the highest Beneish M-Score of Universal Insurance Holdings was 1.71. The lowest was -7.34. And the median was -2.49.

FRA:5UI
53GF Score
Universal Insurance Holdings Inc FRA:5UI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Universal Insurance Holdings 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 Universal Insurance Holdings 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 * 0.4986+0.528 * 1+0.404 * 1+0.892 * 0.9597+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9553+4.679 * -0.058528-0.327 * 0.9729
=-3.23

* 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 €240 Mil.
Revenue was 340.434 + 348.369 + 341.636 + 346.922 = €1,377 Mil.
Gross Profit was 340.434 + 348.369 + 341.636 + 346.922 = €1,377 Mil.
Total Current Assets was €0 Mil.
Total Assets was €2,396 Mil.
Property, Plant and Equipment(Net PPE) was €43 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €26 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €87 Mil.
Net Income was 46.962 + 56.867 + 33.935 + 30.426 = €168 Mil.
Non Operating Income was 1.782 + 1.665 + 1.73 + 1.746 = €7 Mil.
Cash Flow from Operations was 133.921 + 22.272 + 53.183 + 92.095 = €301 Mil.
 Total Receivables was €502 Mil.
Revenue was 365.252 + 367.493 + 349.186 + 353.219 = €1,435 Mil.
Gross Profit was 365.252 + 367.493 + 349.186 + 353.219 = €1,435 Mil.
Total Current Assets was €0 Mil.
Total Assets was €2,511 Mil.
Property, Plant and Equipment(Net PPE) was €45 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €28 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €93 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)
=(240.369 / 1377.361) / (502.332 / 1435.15)
=0.174514 / 0.350021
=0.4986

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)
=(1435.15 / 1435.15) / (1377.361 / 1377.361)
=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 + 42.684) / 2395.521) / (1 - (0 + 44.639) / 2511.112)
=0.982182 / 0.982223
=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
=1377.361 / 1435.15
=0.9597

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 + 44.639)) / (0 / (0 + 42.684))
=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)
=(25.979 / 1377.361) / (28.334 / 1435.15)
=0.018861 / 0.019743
=0.9553

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)
=((86.751 + 0) / 2395.521) / ((93.474 + 0) / 2511.112)
=0.036214 / 0.037224
=0.9729

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
=(168.19 - 6.923 - 301.471) / 2395.521
=-0.058528

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.

Universal Insurance Holdings has a M-score of -3.23 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 -3.17 mean?
Universal Insurance Holdings (FRA:5UI) has a Beneish M-Score of -3.17 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Universal Insurance Holdings and its competitors. According to the industry distribution chart, Universal Insurance Holdings ranks #46 out of 399 companies in the Insurance industry, placing it in the top 11.5%.
Is Universal Insurance Holdings' Beneish M-Score too high?
Universal Insurance Holdings' current Beneish M-Score is -3.17. Based on the distribution chart, Universal Insurance Holdings ranks #46 out of 399 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Insurance Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Insurance Holdings' Beneish M-Score compare to SAFT and HGTY?
According to the Insurance industry distribution chart, Universal Insurance Holdings ranks #46 out of 399 companies for Beneish M-Score. This places Universal Insurance Holdings in the top 12% of its industry — outperforming the majority of peers. 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 Insurance company?
A good Beneish M-Score depends on the Insurance 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 Universal Insurance Holdings and its competitors. Universal Insurance Holdings's current Beneish M-Score is -3.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Insurance Holdings stock overvalued right now?
Based on GuruFocus' analysis, Universal Insurance Holdings (FRA:5UI) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.39, compared to a current price of €33.40 — trading 72.3% above its estimated fair value. The current Beneish M-Score is -3.17. Universal Insurance Holdings' overall GF Score™ is 53/100 with 8 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 Universal Insurance Holdings (FRA:5UI), the current Beneish M-Score is -3.17 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 Universal Insurance Holdings (FRA:5UI) Overvalued in 2026?

Based on GuruFocus' analysis, Universal Insurance Holdings stock appears to be overvalued. The current stock price of €33.40 is trading 72.3% above its estimated GF Value™ of €19.39. GuruFocus considers Universal Insurance Holdings to be Significantly Overvalued.

Key valuation signals for FRA:5UI:

  • Beneish M-Score: -3.17
  • GF Value™: €19.39 vs. price of €33.40 (72.3% above fair value)
  • GF Score™: 53/100 with 8 warning signs

No single metric tells the full story. See the FRA:5UI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Universal Insurance Holdings Business Description

Other Exchanges UVE:USA
Address 1110 W. Commercial Boulevard, Fort Lauderdale, FL, USA, 33309
Universal Insurance Holdings Inc is an insurance holding company. Through its subsidiaries, the company mainly offers property and casualty insurance and value-added insurance services. It develops, markets, and underwrites insurance products for consumers predominantly in the personal residential homeowners lines of business and performs all other insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. The group offers the following types of personal residential insurance: homeowners, renters/tenants, condo unit owners, and dwelling/fire, through an independent agent network and online distribution channels across multiple states in the United States of America.
53GF Score

Get the complete analysis for FRA:5UI

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

€33.40
Price
€19.39
GF Value