Shinhan Financial Group Co (FRA:KSF1) Beneish M-Score: -2.90 (As of Jun. 27, 2026)


FRA:KSF1 Shinhan Financial Group Co Ltd FRA:KSF1
46 GF Score
Price €51.50
GF Value €31.14
! 3 Warning Signs
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What is Shinhan Financial Group Co Beneish M-Score?

Shinhan Financial Group Co FRA:KSF1 -1.90% 46 Beneish M-Score is -2.90 as of Jun. 27, 2026. GuruFocus rates FRA:KSF1 with a GF Score™ of 46/100 and a GF Value™ of €31.14. The stock has 3 warning signs investors should review. Among 1,397 Banks companies, Shinhan Financial Group Co ranks better than 91.7% 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 -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shinhan Financial Group Co's Beneish M-Score or its related term are showing as below:

FRA:KSF1' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.22   Max: 1269.62
Current: -2.9

During the past 13 years, the highest Beneish M-Score of Shinhan Financial Group Co was 1269.62. The lowest was -3.41. And the median was -2.22.

FRA:KSF1
46GF Score
Shinhan Financial Group Co Ltd FRA:KSF1
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Shinhan Financial Group Co 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 Shinhan Financial Group Co 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 * 0.5233+0.528 * 1+0.404 * 1.0004+0.892 * 0.9647+0.115 * 1.0331
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9769+4.679 * -0.014189-0.327 * 0.9306
=-2.99

* 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 €20 Mil.
Revenue was 2717.777 + 2799.114 + 2727.131 + 3001.72 = €11,246 Mil.
Gross Profit was 2717.777 + 2799.114 + 2727.131 + 3001.72 = €11,246 Mil.
Total Current Assets was €0 Mil.
Total Assets was €473,971 Mil.
Property, Plant and Equipment(Net PPE) was €2,423 Mil.
Depreciation, Depletion and Amortization(DDA) was €769 Mil.
Selling, General, & Admin. Expense(SGA) was €3,090 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €77,112 Mil.
Net Income was 941.649 + 297.585 + 870.741 + 984.137 = €3,094 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 7803.897 + -2875.158 + 7588.791 + -2698.268 = €9,819 Mil.
 Total Receivables was €40 Mil.
Revenue was 2749.773 + 3053.027 + 2891.582 + 2962.684 = €11,657 Mil.
Gross Profit was 2749.773 + 3053.027 + 2891.582 + 2962.684 = €11,657 Mil.
Total Current Assets was €0 Mil.
Total Assets was €473,314 Mil.
Property, Plant and Equipment(Net PPE) was €2,606 Mil.
Depreciation, Depletion and Amortization(DDA) was €864 Mil.
Selling, General, & Admin. Expense(SGA) was €3,278 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €82,743 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)
=(20.338 / 11245.742) / (40.301 / 11657.066)
=0.001809 / 0.003457
=0.5233

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)
=(11657.066 / 11657.066) / (11245.742 / 11245.742)
=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 + 2422.587) / 473970.582) / (1 - (0 + 2606.225) / 473314.31)
=0.994889 / 0.994494
=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
=11245.742 / 11657.066
=0.9647

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))
=(864.268 / (864.268 + 2606.225)) / (769.406 / (769.406 + 2422.587))
=0.249033 / 0.241043
=1.0331

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)
=(3089.556 / 11245.742) / (3278.154 / 11657.066)
=0.274731 / 0.281216
=0.9769

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)
=((77111.895 + 0) / 473970.582) / ((82743.427 + 0) / 473314.31)
=0.162693 / 0.174817
=0.9306

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
=(3094.112 - 0 - 9819.262) / 473970.582
=-0.014189

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.

Shinhan Financial Group Co has a M-score of -2.99 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 -2.90 mean?
Shinhan Financial Group Co (FRA:KSF1) has a Beneish M-Score of -2.90 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shinhan Financial Group Co and its competitors. According to the industry distribution chart, Shinhan Financial Group Co ranks #116 out of 1397 companies in the Banks industry, placing it in the top 8.3%.
Is Shinhan Financial Group Co's Beneish M-Score too high?
Shinhan Financial Group Co's current Beneish M-Score is -2.90. Based on the distribution chart, Shinhan Financial Group Co ranks #116 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Shinhan Financial Group Co has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does Shinhan Financial Group Co's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Shinhan Financial Group Co ranks #116 out of 1397 companies for Beneish M-Score. This places Shinhan Financial Group Co in the top 8% of its industry — outperforming the majority of peers. 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 Shinhan Financial Group Co and its competitors. Shinhan Financial Group Co's current Beneish M-Score is -2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhan Financial Group Co stock overvalued right now?
Shinhan Financial Group Co (FRA:KSF1) has a current Beneish M-Score of -2.90. The stock's GF Value™ is €31.14, compared to a current price of €51.50 — trading 65.4% above its estimated fair value. The current Beneish M-Score is -2.90. Shinhan Financial Group Co's overall GF Score™ is 46/100 with 3 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 Shinhan Financial Group Co (FRA:KSF1), the current Beneish M-Score is -2.90 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 Shinhan Financial Group Co (FRA:KSF1) Overvalued in 2026?

Based on GuruFocus' analysis, Shinhan Financial Group Co stock appears to be overvalued. The current stock price of €51.50 is trading 65.4% above its estimated GF Value™ of €31.14.

Key valuation signals for FRA:KSF1:

  • Beneish M-Score: -2.90
  • GF Value™: €31.14 vs. price of €51.50 (65.4% above fair value)
  • GF Score™: 46/100 with 3 warning signs

No single metric tells the full story. See the FRA:KSF1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shinhan Financial Group Co Business Description

Address 20, Sejong-daero 9-gil, Jung-gu, Seoul, KOR, 04513
Shinhan Financial Group Co Ltd is a Korean banking group. Along with its subsidiaries the company provides, comprehensive financial services which consist of commercial banking services, credit card services, securities services, insurance, credit services, and asset management services, including securities investment trust management, investment advisory, call transaction, domestic and foreign private equity fund business, and other services. The majority of the revenue is generated from its Banking business which includes retail, corporate, international, and other banking services the company offers.
46GF Score

Get the complete analysis for FRA:KSF1

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

€51.50
Price
€31.14
GF Value