SoFi Technologies (FRA:6B0) Beneish M-Score: -1.31 (As of Jun. 26, 2026)


FRA:6B0 SoFi Technologies Inc FRA:6B0
66 GF Score
Price €15.30
GF Value €14.08
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is SoFi Technologies Beneish M-Score?

SoFi Technologies FRA:6B0 +0.03% 66 Beneish M-Score is -1.31 as of Jun. 26, 2026. GuruFocus rates FRA:6B0 with a GF Score™ of 66/100 and a GF Value™ of €14.08 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 483 Credit Services companies, SoFi Technologies ranks worse than 71.84% 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.

Warning Sign:

Beneish M-Score -1.31 higher than -1.78, which implies that the company might have manipulated its financial results.

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

FRA:6B0' s Beneish M-Score Range Over the Past 10 Years
Min: -1.9   Med: -1.26   Max: -0.17
Current: -1.31

During the past 8 years, the highest Beneish M-Score of SoFi Technologies was -0.17. The lowest was -1.90. And the median was -1.26.

FRA:6B0
66GF Score
SoFi Technologies Inc FRA:6B0
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SoFi Technologies 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 SoFi Technologies 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 * 1.0004+0.892 * 1.3049+0.115 * 1.1127
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9307+4.679 * 0.123337-0.327 * 0.3785
=-1.40

* 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 Mil.
Revenue was 951.818 + 875.394 + 819.283 + 741.236 = €3,388 Mil.
Gross Profit was 951.818 + 875.394 + 819.283 + 741.236 = €3,388 Mil.
Total Current Assets was €0 Mil.
Total Assets was €46,449 Mil.
Property, Plant and Equipment(Net PPE) was €465 Mil.
Depreciation, Depletion and Amortization(DDA) was €212 Mil.
Selling, General, & Admin. Expense(SGA) was €1,666 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,236 Mil.
Net Income was 144.222 + 148.211 + 118.762 + 84.327 = €496 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -2002.47 + -846.466 + -1112.605 + -1271.809 = €-5,233 Mil.
 Total Receivables was €0 Mil.
Revenue was 713.877 + 701.089 + 625.112 + 556.116 = €2,596 Mil.
Gross Profit was 713.877 + 701.089 + 625.112 + 556.116 = €2,596 Mil.
Total Current Assets was €0 Mil.
Total Assets was €34,918 Mil.
Property, Plant and Equipment(Net PPE) was €365 Mil.
Depreciation, Depletion and Amortization(DDA) was €195 Mil.
Selling, General, & Admin. Expense(SGA) was €1,372 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €2,455 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 / 3387.731) / (0 / 2596.194)
=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)
=(2596.194 / 2596.194) / (3387.731 / 3387.731)
=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 + 464.803) / 46448.993) / (1 - (0 + 364.857) / 34918.09)
=0.989993 / 0.989551
=1.0004

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
=3387.731 / 2596.194
=1.3049

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))
=(195.036 / (195.036 + 364.857)) / (211.828 / (211.828 + 464.803))
=0.348345 / 0.313063
=1.1127

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)
=(1665.897 / 3387.731) / (1371.765 / 2596.194)
=0.491744 / 0.528375
=0.9307

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)
=((1235.83 + 0) / 46448.993) / ((2454.82 + 0) / 34918.09)
=0.026606 / 0.070302
=0.3785

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
=(495.522 - 0 - -5233.35) / 46448.993
=0.123337

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.

SoFi Technologies has a M-score of -1.40 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.31 mean?
SoFi Technologies (FRA:6B0) has a Beneish M-Score of -1.31 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on SoFi Technologies and its competitors. According to the industry distribution chart, SoFi Technologies ranks #347 out of 483 companies in the Credit Services industry, placing it in the top 71.8%.
Is SoFi Technologies' Beneish M-Score too high?
SoFi Technologies' current Beneish M-Score is -1.31. Based on the distribution chart, SoFi Technologies ranks #347 out of 483 companies in the Credit Services industry, which is below the industry midpoint. Overall, SoFi Technologies has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SoFi Technologies' Beneish M-Score compare to SYF and AFRM?
According to the Credit Services industry distribution chart, SoFi Technologies ranks #347 out of 483 companies for Beneish M-Score. This places SoFi Technologies 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 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 SoFi Technologies and its competitors. SoFi Technologies's current Beneish M-Score is -1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoFi Technologies stock overvalued right now?
Based on GuruFocus' analysis, SoFi Technologies (FRA:6B0) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.08, compared to a current price of €15.30 — trading 8.7% above its estimated fair value. The current Beneish M-Score is -1.31. SoFi Technologies' overall GF Score™ is 66/100 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 SoFi Technologies (FRA:6B0), the current Beneish M-Score is -1.31 as of Jun. 26, 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 SoFi Technologies (FRA:6B0) Overvalued in 2026?

Based on GuruFocus' analysis, SoFi Technologies stock appears to be overvalued. The current stock price of €15.30 is trading 8.7% above its estimated GF Value™ of €14.08. GuruFocus considers SoFi Technologies to be Modestly Overvalued.

Key valuation signals for FRA:6B0:

  • Beneish M-Score: -1.31
  • GF Value™: €14.08 vs. price of €15.30 (8.7% above fair value)
  • GF Score™: 66/100 with 2 warning signs

No single metric tells the full story. See the FRA:6B0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

SoFi Technologies Business Description

Address 234 1st Street, San Francisco, CA, USA, 94105
SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.
66GF Score

Get the complete analysis for FRA:6B0

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

€15.30
Price
€14.08
GF Value