Old Second Bancorp (FRA:OSB) Beneish M-Score: -2.44 (As of Jun. 27, 2026)


FRA:OSB Old Second Bancorp Inc FRA:OSB
69 GF Score
Price €18.20
GF Value €14.54
! 7 Warning Signs
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What is Old Second Bancorp Beneish M-Score?

Old Second Bancorp FRA:OSB -7.61% 69 Beneish M-Score is -2.44 as of Jun. 27, 2026. GuruFocus rates FRA:OSB with a GF Score™ of 69/100 and a GF Value™ of €14.54. The stock has 7 warning signs investors should review. Among 1,397 Banks companies, Old Second Bancorp ranks better than 58.27% 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:OSB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.5   Med: -2.29   Max: -1.78
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Old Second Bancorp was -1.78. The lowest was -2.50. And the median was -2.29.

FRA:OSB
69GF Score
Old Second Bancorp Inc FRA:OSB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Old Second Bancorp 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 Old Second Bancorp 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 * 0.8608+0.528 * 1+0.404 * 1.0028+0.892 * 1.1587+0.115 * 0.8794
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0083+4.679 * -0.007989-0.327 * 0.9826
=-2.51

* 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 €464.3 Mil.
Revenue was 79.801 + 79.894 + 80.238 + 63.848 = €303.8 Mil.
Gross Profit was 79.801 + 79.894 + 80.238 + 63.848 = €303.8 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €5,924.6 Mil.
Property, Plant and Equipment(Net PPE) was €74.1 Mil.
Depreciation, Depletion and Amortization(DDA) was €9.4 Mil.
Selling, General, & Admin. Expense(SGA) was €114.6 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €86.7 Mil.
Net Income was 22.131 + 24.584 + 8.41 + 18.92 = €74.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 31.952 + 37.781 + 30.622 + 21.02 = €121.4 Mil.
 Total Receivables was €465.5 Mil.
Revenue was 66.346 + 68.471 + 62.801 + 64.56 = €262.2 Mil.
Gross Profit was 66.346 + 68.471 + 62.801 + 64.56 = €262.2 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €5,298.1 Mil.
Property, Plant and Equipment(Net PPE) was €80.9 Mil.
Depreciation, Depletion and Amortization(DDA) was €8.9 Mil.
Selling, General, & Admin. Expense(SGA) was €98.1 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €78.9 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)
=(464.322 / 303.781) / (465.519 / 262.178)
=1.528476 / 1.775584
=0.8608

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)
=(262.178 / 262.178) / (303.781 / 303.781)
=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 + 74.073) / 5924.576) / (1 - (0 + 80.906) / 5298.11)
=0.987497 / 0.984729
=1.0028

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
=303.781 / 262.178
=1.1587

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))
=(8.867 / (8.867 + 80.906)) / (9.372 / (9.372 + 74.073))
=0.098771 / 0.112313
=0.8794

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)
=(114.641 / 303.781) / (98.127 / 262.178)
=0.37738 / 0.374276
=1.0083

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)
=((86.66 + 0) / 5924.576) / ((78.867 + 0) / 5298.11)
=0.014627 / 0.014886
=0.9826

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
=(74.045 - 0 - 121.375) / 5924.576
=-0.007989

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.

Old Second Bancorp has a M-score of -2.51 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 -2.44 mean?
Old Second Bancorp (FRA:OSB) has a Beneish M-Score of -2.44 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Old Second Bancorp and its competitors. According to the industry distribution chart, Old Second Bancorp ranks #583 out of 1397 companies in the Banks industry, placing it in the top 41.7%.
Is Old Second Bancorp's Beneish M-Score too high?
Old Second Bancorp's current Beneish M-Score is -2.44. Based on the distribution chart, Old Second Bancorp ranks #583 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, Old Second Bancorp has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Old Second Bancorp's Beneish M-Score compare to UVSP and CCB?
According to the Banks industry distribution chart, Old Second Bancorp ranks #583 out of 1397 companies for Beneish M-Score. This puts Old Second Bancorp 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 Old Second Bancorp and its competitors. Old Second Bancorp's current Beneish M-Score is -2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Old Second Bancorp stock overvalued right now?
Old Second Bancorp (FRA:OSB) has a current Beneish M-Score of -2.44. The stock's GF Value™ is €14.54, compared to a current price of €18.20 — trading 25.2% above its estimated fair value. The current Beneish M-Score is -2.44. Old Second Bancorp's overall GF Score™ is 69/100 with 7 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 Old Second Bancorp (FRA:OSB), the current Beneish M-Score is -2.44 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 Old Second Bancorp (FRA:OSB) Overvalued in 2026?

Based on GuruFocus' analysis, Old Second Bancorp stock appears to be overvalued. The current stock price of €18.20 is trading 25.2% above its estimated GF Value™ of €14.54.

Key valuation signals for FRA:OSB:

  • Beneish M-Score: -2.44
  • GF Value™: €14.54 vs. price of €18.20 (25.2% above fair value)
  • GF Score™: 69/100 with 7 warning signs

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

Old Second Bancorp Business Description

Other Exchanges OSBC:USA
Address 37 South River Street, Aurora, IL, USA, 60507
Old Second Bancorp Inc is a bank holding company. It provides consumer and commercial banking products such as demand, money market, savings, time deposit, and individual retirement as well as commercial, industrial, consumer, and real estate lending, including installment loans, student loans, agricultural loans, lines of credit and overdraft checking, safe deposit operations, trust services, wealth management services, and additional services tailored to the needs of individual customers, corporates, small-medium enterprises. The company has one operating segment, which is community banking. The company's revenue consists of interest, commission, payments, and other income.
69GF Score

Get the complete analysis for FRA:OSB

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

€18.20
Price
€14.54
GF Value