Medallion Financial (FRA:MD5) Beneish M-Score: -2.81 (As of Aug. 03, 2026)

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FRA:MD5 Medallion Financial Corp FRA:MD5
61 GF Score
Price €8.40
GF Value €8.41
! 5 Warning Signs
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What is Medallion Financial Beneish M-Score?

Medallion Financial FRA:MD5 +1.20% 61 Beneish M-Score is -2.81 as of Aug. 03, 2026. GuruFocus rates FRA:MD5 with a GF Score™ of 61/100 and a GF Value™ of €8.41. The stock has 5 warning signs investors should review. Among 488 Credit Services companies, Medallion Financial ranks better than 82.17% 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:MD5' s Beneish M-Score Range Over the Past 10 Years
Min: -4.8   Med: -2.43   Max: 15.05
Current: -2.81

During the past 13 years, the highest Beneish M-Score of Medallion Financial was 15.05. The lowest was -4.80. And the median was -2.43.

FRA:MD5
61GF Score
Medallion Financial Corp FRA:MD5
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Medallion Financial 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 Medallion Financial 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 * 0.6921+0.528 * 1+0.404 * 0.998+0.892 * 1.0295+0.115 * 1.1785
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9839+4.679 * -0.031791-0.327 * 1.0335
=-2.87

* 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 €9.5 Mil.
Revenue was 45.784 + 57.755 + 47.611 + 51.743 = €202.9 Mil.
Gross Profit was 45.784 + 57.755 + 47.611 + 51.743 = €202.9 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,552.2 Mil.
Property, Plant and Equipment(Net PPE) was €16.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €7.1 Mil.
Selling, General, & Admin. Expense(SGA) was €39.5 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €189.1 Mil.
Net Income was 4.284 + 10.417 + 9.609 + 9.597 = €33.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 35.738 + 28.838 + 57.066 + -6.598 = €115.0 Mil.
 Total Receivables was €13.4 Mil.
Revenue was 55.679 + 51.029 + 45.531 + 44.847 = €197.1 Mil.
Gross Profit was 55.679 + 51.029 + 45.531 + 44.847 = €197.1 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,634.2 Mil.
Property, Plant and Equipment(Net PPE) was €11.9 Mil.
Depreciation, Depletion and Amortization(DDA) was €6.4 Mil.
Selling, General, & Admin. Expense(SGA) was €39.0 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €188.9 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)
=(9.514 / 202.893) / (13.354 / 197.086)
=0.046892 / 0.067757
=0.6921

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)
=(197.086 / 197.086) / (202.893 / 202.893)
=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 + 16.661) / 2552.17) / (1 - (0 + 11.853) / 2634.158)
=0.993472 / 0.9955
=0.998

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
=202.893 / 197.086
=1.0295

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))
=(6.442 / (6.442 + 11.853)) / (7.099 / (7.099 + 16.661))
=0.352118 / 0.298779
=1.1785

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)
=(39.465 / 202.893) / (38.961 / 197.086)
=0.194511 / 0.197685
=0.9839

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)
=((189.131 + 0) / 2552.17) / ((188.879 + 0) / 2634.158)
=0.074106 / 0.071704
=1.0335

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
=(33.907 - 0 - 115.044) / 2552.17
=-0.031791

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.

Medallion Financial has a M-score of -2.87 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 -2.81 mean?
Medallion Financial (FRA:MD5) has a Beneish M-Score of -2.81 as of Aug. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Medallion Financial and its competitors. According to the industry distribution chart, Medallion Financial ranks #87 out of 488 companies in the Credit Services industry, placing it in the top 17.8%.
Is Medallion Financial's Beneish M-Score too high?
Medallion Financial's current Beneish M-Score is -2.81. Based on the distribution chart, Medallion Financial ranks #87 out of 488 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Medallion Financial has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Medallion Financial's Beneish M-Score compare to PMTS and LX?
According to the Credit Services industry distribution chart, Medallion Financial ranks #87 out of 488 companies for Beneish M-Score. This places Medallion Financial in the top 18% 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Medallion Financial and its competitors. Medallion Financial's current Beneish M-Score is -2.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medallion Financial stock overvalued right now?
Medallion Financial (FRA:MD5) has a current Beneish M-Score of -2.81. The stock's GF Value™ is €8.41, compared to a current price of €8.40 — trading 0.1% below its estimated fair value. The current Beneish M-Score is -2.81. Medallion Financial's overall GF Score™ is 61/100 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 Medallion Financial (FRA:MD5), the current Beneish M-Score is -2.81 as of Aug. 03, 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 Medallion Financial (FRA:MD5) Overvalued in 2026?

Based on GuruFocus' analysis, Medallion Financial stock appears to be undervalued. The current stock price of €8.40 is trading 0.1% below its estimated GF Value™ of €8.41.

Key valuation signals for FRA:MD5:

  • Beneish M-Score: -2.81
  • GF Value™: €8.41 vs. price of €8.40 (0.1% below fair value)
  • GF Score™: 61/100 with 5 warning signs

No single metric tells the full story. See the FRA:MD5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Medallion Financial Business Description

Other Exchanges MFIN:USA
Address 437 Madison Avenue, 38th Floor, New York, NY, USA, 10022
Medallion Financial Corp is a finance company that originates and services loans in various industries. The four operating segments are, (1) recreation, (2) home improvement, (3) commercial and (4) taxi medallion The company generates maximum revenue from the Recreation segment. The company's geographic Concentrations are in united states diversified in California, Wisconsin, New York, Texas and others.
61GF Score

Get the complete analysis for FRA:MD5

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

€8.40
Price
€8.41
GF Value