Arbor Realty Trust (FRA:OWQ) Beneish M-Score: 0.47 (As of Jun. 25, 2026)


FRA:OWQ Arbor Realty Trust Inc FRA:OWQ
44 GF Score
Price €4.45
GF Value €8.15
Valuation Possible Value Trap
! 5 Warning Signs
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What is Arbor Realty Trust Beneish M-Score?

Arbor Realty Trust FRA:OWQ +1.74% 44 Beneish M-Score is 0.47 as of Jun. 25, 2026. GuruFocus rates FRA:OWQ with a GF Score™ of 44/100 and a GF Value™ of €8.15 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 765 REITs companies, Arbor Realty Trust ranks worse than 94.25% 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.

Warning Sign:

Beneish M-Score 0.47 higher than -1.78, which implies that the company might have manipulated its financial results.

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

FRA:OWQ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Med: -2.19   Max: 34.16
Current: 0.47

During the past 13 years, the highest Beneish M-Score of Arbor Realty Trust was 34.16. The lowest was -3.60. And the median was -2.19.

FRA:OWQ
44GF Score
Arbor Realty Trust Inc FRA:OWQ
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arbor Realty Trust 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 Arbor Realty Trust 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 * 4.5532+0.528 * 1+0.404 * 1+0.892 * 0.7537+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2235+4.679 * -0.006344-0.327 * 1.1333
=0.46

* 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 €30.5 Mil.
Revenue was 99.696 + 110.215 + 95.317 + 111.81 = €417.0 Mil.
Gross Profit was 99.696 + 110.215 + 95.317 + 111.81 = €417.0 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €12,709.0 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €84.8 Mil.
Selling, General, & Admin. Expense(SGA) was €203.1 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €5,528.5 Mil.
Net Income was 9.49 + 21.279 + 41.582 + 29.733 = €102.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was -7.157 + -14.471 + 152.277 + 52.062 = €182.7 Mil.
 Total Receivables was €8.9 Mil.
Revenue was 121.502 + 144.885 + 141.144 + 145.775 = €553.3 Mil.
Gross Profit was 121.502 + 144.885 + 141.144 + 145.775 = €553.3 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €12,364.8 Mil.
Property, Plant and Equipment(Net PPE) was €0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €74.5 Mil.
Selling, General, & Admin. Expense(SGA) was €220.2 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €4,746.1 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)
=(30.492 / 417.038) / (8.885 / 553.306)
=0.073116 / 0.016058
=4.5532

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)
=(553.306 / 553.306) / (417.038 / 417.038)
=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 + 0) / 12709) / (1 - (0 + 0) / 12364.798)
=1 / 1
=1

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
=417.038 / 553.306
=0.7537

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))
=(74.478 / (74.478 + 0)) / (84.761 / (84.761 + 0))
=1 / 1
=1

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)
=(203.073 / 417.038) / (220.215 / 553.306)
=0.486941 / 0.397999
=1.2235

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)
=((5528.477 + 0) / 12709) / ((4746.095 + 0) / 12364.798)
=0.435005 / 0.383839
=1.1333

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
=(102.084 - 0 - 182.711) / 12709
=-0.006344

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.

Arbor Realty Trust has a M-score of 0.46 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.47 mean?
Arbor Realty Trust (FRA:OWQ) has a Beneish M-Score of 0.47 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arbor Realty Trust and its competitors. According to the industry distribution chart, Arbor Realty Trust ranks #721 out of 765 companies in the REITs industry, placing it in the top 94.2%.
Is Arbor Realty Trust's Beneish M-Score too high?
Arbor Realty Trust's current Beneish M-Score is 0.47. Based on the distribution chart, Arbor Realty Trust ranks #721 out of 765 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Arbor Realty Trust has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arbor Realty Trust's Beneish M-Score compare to CIM and MFA?
According to the REITs industry distribution chart, Arbor Realty Trust ranks #721 out of 765 companies for Beneish M-Score. This places Arbor Realty Trust in the lower 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 REITs company?
A good Beneish M-Score depends on the REITs 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 Arbor Realty Trust and its competitors. Arbor Realty Trust's current Beneish M-Score is 0.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arbor Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Arbor Realty Trust (FRA:OWQ) is currently considered Possible Value Trap. The stock's GF Value™ is €8.15, compared to a current price of €4.45 — trading 45.4% below its estimated fair value. The current Beneish M-Score is 0.47. Arbor Realty Trust's overall GF Score™ is 44/100 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 Arbor Realty Trust (FRA:OWQ), the current Beneish M-Score is 0.47 as of Jun. 25, 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 Arbor Realty Trust (FRA:OWQ) Overvalued in 2026?

Based on GuruFocus' analysis, Arbor Realty Trust stock appears to be undervalued. The current stock price of €4.45 is trading 45.4% below its estimated GF Value™ of €8.15. GuruFocus considers Arbor Realty Trust to be Possible Value Trap.

Key valuation signals for FRA:OWQ:

  • Beneish M-Score: 0.47
  • GF Value™: €8.15 vs. price of €4.45 (45.4% below fair value)
  • GF Score™: 44/100 with 5 warning signs

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

Arbor Realty Trust Business Description

Industry Real EstateREITs
Other Exchanges ABR:USAOWQ:Germany
Address 333 Earle Ovington Boulevard, Suite 900, Uniondale, NY, USA, 11553
Arbor Realty Trust Inc is a specialized real estate finance company. It invests in a diversified portfolio of structured finance assets in the multifamily, SFR, and commercial real estate markets, consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred, and direct equity. In addition, it may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. The company has two business segments, Structured Business and Agency Business. It generates a majority of its revenue from the Structured Business Segment.
44GF Score

Get the complete analysis for FRA:OWQ

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

€4.45
Price
€8.15
GF Value