Bank Bradesco (FRA:BREC) Beneish M-Score: -2.50 (As of Jun. 24, 2026)


FRA:BREC Bank Bradesco SA FRA:BREC
70 GF Score
Price €2.92
GF Value €3.09
Valuation Fairly Valued
! 4 Warning Signs
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What is Bank Bradesco Beneish M-Score?

Bank Bradesco FRA:BREC +0.69% 70 Beneish M-Score is -2.50 as of Jun. 24, 2026. GuruFocus rates FRA:BREC with a GF Score™ of 70/100 and a GF Value™ of €3.09 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,396 Banks companies, Bank Bradesco ranks better than 69.77% 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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:BREC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.56   Med: -2.46   Max: -1.89
Current: -2.5

During the past 13 years, the highest Beneish M-Score of Bank Bradesco was -1.89. The lowest was -2.56. And the median was -2.46.

FRA:BREC
70GF Score
Bank Bradesco SA FRA:BREC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank Bradesco 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 Bank Bradesco 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 * 1.1+0.528 * 1+0.404 * 1.0005+0.892 * 1.0723+0.115 * 1.0212
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9374+4.679 * -0.034257-0.327 * 0.9759
=-2.46

* 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 €6,721 Mil.
Revenue was 5446.439 + 4650.806 + 4444.933 + 4737.831 = €19,280 Mil.
Gross Profit was 5446.439 + 4650.806 + 4444.933 + 4737.831 = €19,280 Mil.
Total Current Assets was €0 Mil.
Total Assets was €402,783 Mil.
Property, Plant and Equipment(Net PPE) was €1,589 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,147 Mil.
Selling, General, & Admin. Expense(SGA) was €7,191 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €77,155 Mil.
Net Income was 856.455 + 1017.545 + 873.87 + 948.438 = €3,696 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 14255.738 + -3107.556 + 129.619 + 6216.562 = €17,494 Mil.
 Total Receivables was €5,698 Mil.
Revenue was 4845.29 + 4649.225 + 4053.369 + 4431.508 = €17,979 Mil.
Gross Profit was 4845.29 + 4649.225 + 4053.369 + 4431.508 = €17,979 Mil.
Total Current Assets was €0 Mil.
Total Assets was €330,066 Mil.
Property, Plant and Equipment(Net PPE) was €1,468 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,100 Mil.
Selling, General, & Admin. Expense(SGA) was €7,154 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €64,790 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)
=(6721.133 / 19280.009) / (5697.977 / 17979.392)
=0.348606 / 0.316917
=1.1

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)
=(17979.392 / 17979.392) / (19280.009 / 19280.009)
=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 + 1589.13) / 402782.799) / (1 - (0 + 1468.476) / 330065.643)
=0.996055 / 0.995551
=1.0005

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
=19280.009 / 17979.392
=1.0723

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))
=(1099.639 / (1099.639 + 1468.476)) / (1147.404 / (1147.404 + 1589.13))
=0.428189 / 0.419291
=1.0212

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)
=(7190.801 / 19280.009) / (7153.756 / 17979.392)
=0.372967 / 0.397886
=0.9374

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)
=((77154.792 + 0) / 402782.799) / ((64789.99 + 0) / 330065.643)
=0.191554 / 0.196294
=0.9759

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
=(3696.308 - 0 - 17494.363) / 402782.799
=-0.034257

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.

Bank Bradesco has a M-score of -2.46 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 -2.50 mean?
Bank Bradesco (FRA:BREC) has a Beneish M-Score of -2.50 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank Bradesco and its competitors. According to the industry distribution chart, Bank Bradesco ranks #422 out of 1396 companies in the Banks industry, placing it in the top 30.2%.
Is Bank Bradesco's Beneish M-Score too high?
Bank Bradesco's current Beneish M-Score is -2.50. Based on the distribution chart, Bank Bradesco ranks #422 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Bank Bradesco has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bank Bradesco's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Bank Bradesco ranks #422 out of 1396 companies for Beneish M-Score. This puts Bank Bradesco 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 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 Bank Bradesco and its competitors. Bank Bradesco's current Beneish M-Score is -2.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank Bradesco stock overvalued right now?
Based on GuruFocus' analysis, Bank Bradesco (FRA:BREC) is currently considered Fairly Valued. The stock's GF Value™ is €3.09, compared to a current price of €2.92 — trading 5.5% below its estimated fair value. The current Beneish M-Score is -2.50. Bank Bradesco's overall GF Score™ is 70/100 with 4 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 Bank Bradesco (FRA:BREC), the current Beneish M-Score is -2.50 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 Bank Bradesco (FRA:BREC) Overvalued in 2026?

Based on GuruFocus' analysis, Bank Bradesco stock appears to be undervalued. The current stock price of €2.92 is trading 5.5% below its estimated GF Value™ of €3.09. GuruFocus considers Bank Bradesco to be Fairly Valued.

Key valuation signals for FRA:BREC:

  • Beneish M-Score: -2.50
  • GF Value™: €3.09 vs. price of €2.92 (5.5% below fair value)
  • GF Score™: 70/100 with 4 warning signs

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

Bank Bradesco Business Description

Address Cidade de Deus S/N, Silver Building, 4th floor, Vila Yara, Osasco, SP, BRA, 06029‑900
Banco Bradesco is Brazil's second-largest private bank, with about 10%-15% of deposits, and the largest insurance provider in Brazil, with roughly 20%-25% market share. The bank is majority controlled by the Bradesco foundation, a private nonprofit institution focused on education. The bank is also a major asset manager with high-single-digit market share. In 2016, Bradesco acquired the Brazilian operations of HSBC.
70GF Score

Get the complete analysis for FRA:BREC

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

€2.92
Price
€3.09
GF Value