Webster Financial (FRA:WED) Beneish M-Score: -2.39 (As of Jun. 25, 2026)


FRA:WED Webster Financial Corp FRA:WED
77 GF Score
Price €64.00
GF Value €49.68
Valuation Modestly Overvalued
! 7 Warning Signs
View Full Analysis

What is Webster Financial Beneish M-Score?

Webster Financial FRA:WED +0.79% 77 Beneish M-Score is -2.39 as of Jun. 25, 2026. GuruFocus rates FRA:WED with a GF Score™ of 77/100 and a GF Value™ of €49.68 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,396 Banks companies, Webster Financial ranks worse than 51.72% 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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:WED' s Beneish M-Score Range Over the Past 10 Years
Min: -4.46   Med: -2.4   Max: -0.65
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Webster Financial was -0.65. The lowest was -4.46. And the median was -2.40.

FRA:WED
77GF Score
Webster Financial Corp FRA:WED
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Webster 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 Webster 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 * 0.9324+0.528 * 1+0.404 * 1.0003+0.892 * 1.0284+0.115 * 0.9696
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9809+4.679 * -0.002657-0.327 * 0.7658
=-2.45

* 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 €1,073 Mil.
Revenue was 636.524 + 628.916 + 620.744 + 620.632 = €2,507 Mil.
Gross Profit was 636.524 + 628.916 + 620.744 + 620.632 = €2,507 Mil.
Total Current Assets was €0 Mil.
Total Assets was €74,031 Mil.
Property, Plant and Equipment(Net PPE) was €370 Mil.
Depreciation, Depletion and Amortization(DDA) was €65 Mil.
Selling, General, & Admin. Expense(SGA) was €799 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €648 Mil.
Net Income was 212.99 + 218.47 + 222.557 + 224.421 = €878 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 249.766 + 271.241 + 319.261 + 234.882 = €1,075 Mil.
 Total Receivables was €1,119 Mil.
Revenue was 651.938 + 631.231 + 583.509 + 570.959 = €2,438 Mil.
Gross Profit was 651.938 + 631.231 + 583.509 + 570.959 = €2,438 Mil.
Total Current Assets was €0 Mil.
Total Assets was €74,259 Mil.
Property, Plant and Equipment(Net PPE) was €391 Mil.
Depreciation, Depletion and Amortization(DDA) was €66 Mil.
Selling, General, & Admin. Expense(SGA) was €792 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €849 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)
=(1072.813 / 2506.816) / (1118.832 / 2437.637)
=0.427958 / 0.458982
=0.9324

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)
=(2437.637 / 2437.637) / (2506.816 / 2506.816)
=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 + 370.377) / 74030.669) / (1 - (0 + 390.743) / 74258.769)
=0.994997 / 0.994738
=1.0003

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
=2506.816 / 2437.637
=1.0284

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))
=(65.687 / (65.687 + 390.743)) / (64.558 / (64.558 + 370.377))
=0.143915 / 0.148431
=0.9696

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)
=(798.99 / 2506.816) / (792.059 / 2437.637)
=0.318727 / 0.324929
=0.9809

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)
=((647.825 + 0) / 74030.669) / ((848.614 + 0) / 74258.769)
=0.008751 / 0.011428
=0.7658

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
=(878.438 - 0 - 1075.15) / 74030.669
=-0.002657

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.

Webster Financial has a M-score of -2.45 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 -2.39 mean?
Webster Financial (FRA:WED) has a Beneish M-Score of -2.39 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Webster Financial and its competitors. According to the industry distribution chart, Webster Financial ranks #722 out of 1396 companies in the Banks industry, placing it in the top 51.7%.
Is Webster Financial's Beneish M-Score too high?
Webster Financial's current Beneish M-Score is -2.39. Based on the distribution chart, Webster Financial ranks #722 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Webster Financial has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Webster Financial's Beneish M-Score compare to FHN and WTFC?
According to the Banks industry distribution chart, Webster Financial ranks #722 out of 1396 companies for Beneish M-Score. This places Webster Financial 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 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 Webster Financial and its competitors. Webster Financial's current Beneish M-Score is -2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webster Financial stock overvalued right now?
Based on GuruFocus' analysis, Webster Financial (FRA:WED) is currently considered Modestly Overvalued. The stock's GF Value™ is €49.68, compared to a current price of €64.00 — trading 28.8% above its estimated fair value. The current Beneish M-Score is -2.39. Webster Financial's overall GF Score™ is 77/100 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 Webster Financial (FRA:WED), the current Beneish M-Score is -2.39 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 Webster Financial (FRA:WED) Overvalued in 2026?

Based on GuruFocus' analysis, Webster Financial stock appears to be overvalued. The current stock price of €64.00 is trading 28.8% above its estimated GF Value™ of €49.68. GuruFocus considers Webster Financial to be Modestly Overvalued.

Key valuation signals for FRA:WED:

  • Beneish M-Score: -2.39
  • GF Value™: €49.68 vs. price of €64.00 (28.8% above fair value)
  • GF Score™: 77/100 with 7 warning signs

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

Webster Financial Business Description

Other Exchanges WBSpF.PFD:USAWBS:USA
Address 200 Elm Street, Stamford, CT, USA, 06902
Webster Financial Corp is a full-service provider of financial services, offering commercial and consumer banking, mortgages, and investment advisory along with trust and wealth management services in Connecticut, New York, Rhode Island, Massachusetts, and Pennsylvania. The company's segment includes Commercial Banking, HSA Bank, and Consumer Banking. It generates maximum revenue from the Commercial Banking segment.
77GF Score

Get the complete analysis for FRA:WED

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

€64.00
Price
€49.68
GF Value