Red River Bancshares (FRA:7RR) Beneish M-Score: -2.25 (As of Jun. 27, 2026)


FRA:7RR Red River Bancshares Inc FRA:7RR
68 GF Score
Price €78.50
GF Value €58.96
! 5 Warning Signs
View Full Analysis

What is Red River Bancshares Beneish M-Score?

Red River Bancshares FRA:7RR -1.88% 68 Beneish M-Score is -2.25 as of Jun. 27, 2026. GuruFocus rates FRA:7RR with a GF Score™ of 68/100 and a GF Value™ of €58.96. The stock has 5 warning signs investors should review. Among 1,397 Banks companies, Red River Bancshares ranks worse than 74.8% 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:7RR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.85   Med: -2.25   Max: -2.04
Current: -2.25

During the past 9 years, the highest Beneish M-Score of Red River Bancshares was -2.04. The lowest was -6.85. And the median was -2.25.

FRA:7RR
68GF Score
Red River Bancshares Inc FRA:7RR
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Red River Bancshares 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 Red River Bancshares 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 * 0.9572+0.528 * 1+0.404 * 1.0009+0.892 * 1.0508+0.115 * 0.941
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9463+4.679 * -0.000994-0.327 * 0.5093
=-2.32

* 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 €9.8 Mil.
Revenue was 28.401 + 28.076 + 26.885 + 26.131 = €109.5 Mil.
Gross Profit was 28.401 + 28.076 + 26.885 + 26.131 = €109.5 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,894.8 Mil.
Property, Plant and Equipment(Net PPE) was €53.6 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.1 Mil.
Selling, General, & Admin. Expense(SGA) was €37.3 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €1.3 Mil.
Net Income was 10.355 + 9.748 + 9.202 + 8.84 = €38.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 14.638 + 9.043 + 14.05 + 3.291 = €41.0 Mil.
 Total Receivables was €9.8 Mil.
Revenue was 27.583 + 27.072 + 24.851 + 24.689 = €104.2 Mil.
Gross Profit was 27.583 + 27.072 + 24.851 + 24.689 = €104.2 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,947.5 Mil.
Property, Plant and Equipment(Net PPE) was €57.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.1 Mil.
Selling, General, & Admin. Expense(SGA) was €37.5 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €2.5 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)
=(9.819 / 109.493) / (9.762 / 104.195)
=0.089677 / 0.09369
=0.9572

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)
=(104.195 / 104.195) / (109.493 / 109.493)
=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 + 53.563) / 2894.809) / (1 - (0 + 57.022) / 2947.45)
=0.981497 / 0.980654
=1.0009

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
=109.493 / 104.195
=1.0508

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))
=(3.098 / (3.098 + 57.022)) / (3.103 / (3.103 + 53.563))
=0.05153 / 0.054759
=0.941

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)
=(37.323 / 109.493) / (37.532 / 104.195)
=0.340871 / 0.360209
=0.9463

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)
=((1.267 + 0) / 2894.809) / ((2.534 + 0) / 2947.45)
=0.000438 / 0.00086
=0.5093

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
=(38.145 - 0 - 41.022) / 2894.809
=-0.000994

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.

Red River Bancshares has a M-score of -2.32 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 -2.25 mean?
Red River Bancshares (FRA:7RR) has a Beneish M-Score of -2.25 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Red River Bancshares and its competitors. According to the industry distribution chart, Red River Bancshares ranks #1045 out of 1397 companies in the Banks industry, placing it in the top 74.8%.
Is Red River Bancshares' Beneish M-Score too high?
Red River Bancshares' current Beneish M-Score is -2.25. Based on the distribution chart, Red River Bancshares ranks #1045 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Red River Bancshares has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Red River Bancshares' Beneish M-Score compare to PFIS and NFBK?
According to the Banks industry distribution chart, Red River Bancshares ranks #1045 out of 1397 companies for Beneish M-Score. This places Red River Bancshares 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 Banks company?
A good Beneish M-Score depends on the Banks 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 Red River Bancshares and its competitors. Red River Bancshares's current Beneish M-Score is -2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red River Bancshares stock overvalued right now?
Red River Bancshares (FRA:7RR) has a current Beneish M-Score of -2.25. The stock's GF Value™ is €58.96, compared to a current price of €78.50 — trading 33.1% above its estimated fair value. The current Beneish M-Score is -2.25. Red River Bancshares' overall GF Score™ is 68/100 with 5 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 Red River Bancshares (FRA:7RR), the current Beneish M-Score is -2.25 as of Jun. 27, 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 Red River Bancshares (FRA:7RR) Overvalued in 2026?

Based on GuruFocus' analysis, Red River Bancshares stock appears to be overvalued. The current stock price of €78.50 is trading 33.1% above its estimated GF Value™ of €58.96.

Key valuation signals for FRA:7RR:

  • Beneish M-Score: -2.25
  • GF Value™: €58.96 vs. price of €78.50 (33.1% above fair value)
  • GF Score™: 68/100 with 5 warning signs

No single metric tells the full story. See the FRA:7RR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Red River Bancshares Business Description

Other Exchanges RRBI:USA
Address 1412 Centre Court Drive, Suite 501, Alexandria, LA, USA, 71301
Red River Bancshares Inc is the bank holding company for the red river bank. The principal business of the Bank is lending and accepting deposits from businesses, professionals, individuals, and public entities. The bank's primary deposit products are demand deposits, savings deposits, and time deposits. The bank maintains a diversified loan portfolio with a focus on commercial real estate (Owner Occupied and Non-Owner Occupied), one-to-four-family residential, commercial, and industrial loans, construction and development Loans, and others. also, provides Treasury Management Services, Private Banking Services, Brokerage Services, and Other Banking Services.
68GF Score

Get the complete analysis for FRA:7RR

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

€78.50
Price
€58.96
GF Value