Invesco Mortgage Capital (FRA:7M20) Beneish M-Score: 0.00 (As of Jul. 21, 2026)

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FRA:7M20 Invesco Mortgage Capital Inc FRA:7M20
39 GF Score
Price €7.00
! 2 Warning Signs
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What is Invesco Mortgage Capital Beneish M-Score?

Invesco Mortgage Capital FRA:7M20 -1.41% 39 Beneish M-Score is 0.00 as of Jul. 21, 2026. GuruFocus rates FRA:7M20 with a GF Score™ of 39/100. The stock has 2 warning signs investors should review. Among 754 REITs companies, Invesco Mortgage Capital ranks worse than 132625.86% 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.

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

During the past 13 years, the highest Beneish M-Score of Invesco Mortgage Capital was 28.89. The lowest was -3.84. And the median was -2.61.

FRA:7M20
39GF Score
Invesco Mortgage Capital Inc FRA:7M20
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Invesco Mortgage Capital 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 Invesco Mortgage Capital 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 €45.46 Mil.
Revenue was -12.986 + 47.874 + 49.361 + -16 = €68.25 Mil.
Gross Profit was -12.986 + 47.874 + 49.361 + -16 = €68.25 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €5,424.59 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.58 Mil.
Selling, General, & Admin. Expense(SGA) was €6.47 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 Mil.
Net Income was -17.217 + 43.976 + 45.557 + -20.225 = €52.09 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was 23.083 + 51.077 + 31.776 + 35.23 = €141.17 Mil.
 Total Receivables was €25.50 Mil.
Revenue was 22.477 + 8.139 + 40.845 + -7.725 = €63.74 Mil.
Gross Profit was 22.477 + 8.139 + 40.845 + -7.725 = €63.74 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €5,696.86 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.59 Mil.
Selling, General, & Admin. Expense(SGA) was €6.51 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 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)
=(45.458 / 68.249) / (25.499 / 63.736)
=0.666061 / 0.400072
=

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)
=(63.736 / 63.736) / (68.249 / 68.249)
=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) / 5424.588) / (1 - (0 + 0) / 5696.857)
=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
=68.249 / 63.736
=

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))
=(0.589 / (0.589 + 0)) / (0.575 / (0.575 + 0))
=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)
=(6.466 / 68.249) / (6.506 / 63.736)
=0.094741 / 0.102077
=

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)
=((0 + 0) / 5424.588) / ((0 + 0) / 5696.857)
=0 / 0
=

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
=(52.091 - 0 - 141.166) / 5424.588
=-0.016421

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.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.00 mean?
Invesco Mortgage Capital (FRA:7M20) has a Beneish M-Score of 0.00 as of Jul. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Invesco Mortgage Capital and its competitors. According to the industry distribution chart, Invesco Mortgage Capital ranks #999999 out of 754 companies in the REITs industry.
Is Invesco Mortgage Capital's Beneish M-Score too high?
Invesco Mortgage Capital's current Beneish M-Score is 0.00. Based on the distribution chart, Invesco Mortgage Capital ranks #999999 out of 754 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Invesco Mortgage Capital has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Invesco Mortgage Capital's Beneish M-Score compare to BRSP and ADAM?
According to the REITs industry distribution chart, Invesco Mortgage Capital ranks #999999 out of 754 companies for Beneish M-Score. This places Invesco Mortgage Capital 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 REITs company?
A good Beneish M-Score depends on the REITs 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 Invesco Mortgage Capital and its competitors. Invesco Mortgage Capital's current Beneish M-Score is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Invesco Mortgage Capital stock overvalued right now?
Invesco Mortgage Capital (FRA:7M20) has a current Beneish M-Score of 0.00. The current Beneish M-Score is 0.00. Invesco Mortgage Capital's overall GF Score™ is 39/100 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 Invesco Mortgage Capital (FRA:7M20), the current Beneish M-Score is 0.00 as of Jul. 21, 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.

Invesco Mortgage Capital Business Description

Industry Real EstateREITs
Other Exchanges IVRpC.PFD:USAIVR:USA0JD3:UK
Address 1331 Spring Street, North West, Suite 2500, Atlanta, GA, USA, 30309
Invesco Mortgage Capital Inc is a REIT that invests, finances, and manages residential and commercial mortgage-backed securities and mortgage loans. The company's portfolio consists of residential mortgage-backed securities (RMBS) that are guaranteed by a U.S. government agency such as the Government National Mortgage Association, or a federally chartered corporation such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; Commercial mortgage-backed securities (CMBS) that are not guaranteed by a U.S. government agency or a federally chartered corporation; RMBS that are not guaranteed by a U.S. government agency or a federally chartered corporation; and other real estate-related financing arrangements.
39GF Score

Get the complete analysis for FRA:7M20

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

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