Leonardo SpA (FRA:FMN) Beneish M-Score: -2.59 (As of Jun. 24, 2026)


FRA:FMN Leonardo SpA FRA:FMN
80 GF Score
Price €24.20
GF Value €14.77
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is Leonardo SpA Beneish M-Score?

Leonardo SpA FRA:FMN -6.20% 80 Beneish M-Score is -2.59 as of Jun. 24, 2026. GuruFocus rates FRA:FMN with a GF Score™ of 80/100 and a GF Value™ of €14.77 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 326 Aerospace & Defense companies, Leonardo SpA ranks better than 63.5% on this metric.

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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:FMN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67   Med: -2.51   Max: -2.26
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Leonardo SpA was -2.26. The lowest was -2.67. And the median was -2.51.

Leonardo SpA Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Leonardo SpA's Beneish M-Score can be seen below:

* 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.

Leonardo SpA Beneish M-Score Chart

Leonardo SpA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.26 -2.51 -2.53 -2.50 -2.59

Leonardo SpA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -2.59 0.00

FRA:FMN vs GE, RTX, BA: Beneish M-Score Comparison

For the Aerospace & Defense subindustry, Leonardo SpA's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Leonardo SpA Beneish M-Score vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Leonardo SpA's Beneish M-Score falls into.


FRA:FMN
80GF Score
Leonardo SpA FRA:FMN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Leonardo SpA 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 Leonardo SpA 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 * 0.8884+0.528 * 0.9781+0.404 * 0.9551+0.892 * 1.098+0.115 * 1.0584
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.015242-0.327 * 0.9896
=-2.59

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was €7,991 Mil.
Revenue was €19,503 Mil.
Gross Profit was €2,263 Mil.
Total Current Assets was €19,091 Mil.
Total Assets was €34,509 Mil.
Property, Plant and Equipment(Net PPE) was €3,617 Mil.
Depreciation, Depletion and Amortization(DDA) was €657 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €19,580 Mil.
Long-Term Debt & Capital Lease Obligation was €1,896 Mil.
Net Income was €1,224 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €1,750 Mil.
 Total Receivables was €8,192 Mil.
Revenue was €17,763 Mil.
Gross Profit was €2,016 Mil.
Total Current Assets was €18,204 Mil.
Total Assets was €33,673 Mil.
Property, Plant and Equipment(Net PPE) was €3,412 Mil.
Depreciation, Depletion and Amortization(DDA) was €663 Mil.
Selling, General, & Admin. Expense(SGA) was €0 Mil.
Total Current Liabilities was €18,804 Mil.
Long-Term Debt & Capital Lease Obligation was €2,373 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)
=(7991 / 19503) / (8192 / 17763)
=0.409732 / 0.461183
=0.8884

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)
=(2016 / 17763) / (2263 / 19503)
=0.113494 / 0.116033
=0.9781

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 - (19091 + 3617) / 34509) / (1 - (18204 + 3412) / 33673)
=0.341969 / 0.358061
=0.9551

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
=19503 / 17763
=1.098

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))
=(663 / (663 + 3412)) / (657 / (657 + 3617))
=0.162699 / 0.15372
=1.0584

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)
=(0 / 19503) / (0 / 17763)
=0 / 0
=1

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)
=((1896 + 19580) / 34509) / ((2373 + 18804) / 33673)
=0.62233 / 0.628901
=0.9896

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
=(1224 - 0 - 1750) / 34509
=-0.015242

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.

Leonardo SpA has a M-score of -2.59 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 -2.59 mean?
Leonardo SpA (FRA:FMN) has a Beneish M-Score of -2.59 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Leonardo SpA and its competitors. According to the industry distribution chart, Leonardo SpA ranks #119 out of 326 companies in the Aerospace & Defense industry, placing it in the top 36.5%.
Is Leonardo SpA's Beneish M-Score too high?
Leonardo SpA's current Beneish M-Score is -2.59. Based on the distribution chart, Leonardo SpA ranks #119 out of 326 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Leonardo SpA has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's Beneish M-Score compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Leonardo SpA ranks #119 out of 326 companies for Beneish M-Score. This puts Leonardo SpA 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 an Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense 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 Leonardo SpA and its competitors. Leonardo SpA's current Beneish M-Score is -2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FRA:FMN) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.77, compared to a current price of €24.20 — trading 63.8% above its estimated fair value. The current Beneish M-Score is -2.59. Leonardo SpA's overall GF Score™ is 80/100 with 1 warning sign 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 Leonardo SpA (FRA:FMN), the current Beneish M-Score is -2.59 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 Leonardo SpA (FRA:FMN) Overvalued in 2026?

Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued. The current stock price of €24.20 is trading 63.8% above its estimated GF Value™ of €14.77. GuruFocus considers Leonardo SpA to be Significantly Overvalued.

Key valuation signals for FRA:FMN:

  • Beneish M-Score: -2.59
  • GF Value™: €14.77 vs. price of €24.20 (63.8% above fair value)
  • GF Score™: 80/100 with 1 warning sign

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

Leonardo SpA Business Description

Address Piazza Monte Grappa 4, Rome, ITA, 00195
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
80GF Score

Get the complete analysis for FRA:FMN

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

€24.20
Price
€14.77
GF Value