FSCO (FS Credit Opportunities) Beneish M-Score: -3.63 (As of Jun. 27, 2026)


FSCO FS Credit Opportunities Corp FSCO
44 GF Score
Price $4.83
GF Value $5.33
Valuation Fairly Valued
! 4 Warning Signs
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What is FS Credit Opportunities Beneish M-Score?

FS Credit Opportunities FSCO +1.90% 44 Beneish M-Score is -3.63 as of Jun. 27, 2026. GuruFocus rates FSCO with a GF Score™ of 44/100 and a GF Value™ of $5.33 (Fairly Valued). The stock has 4 warning signs investors should review. Among 954 Asset Management companies, FS Credit Opportunities ranks better than 90.46% 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 -3.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FSCO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Med: -2.51   Max: -1.38
Current: -3.63

During the past 4 years, the highest Beneish M-Score of FS Credit Opportunities was -1.38. The lowest was -3.63. And the median was -2.51.

FSCO
44GF Score
FS Credit Opportunities Corp FSCO
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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FS Credit Opportunities 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 FS Credit Opportunities 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 * 0.7425+0.528 * 1+0.404 * 1+0.892 * 0.7934+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3054+4.679 * -0.167889-0.327 * 0.6781
=-3.63

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $45.2 Mil.
Revenue was $163.6 Mil.
Gross Profit was $163.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,159.0 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $10.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $285.0 Mil.
Net Income was $149.7 Mil.
Gross Profit was $0.0 Mil.
Cash Flow from Operations was $512.2 Mil.
 Total Receivables was $76.7 Mil.
Revenue was $206.2 Mil.
Gross Profit was $206.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,326.9 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $9.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $453.0 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)
=(45.191 / 163.589) / (76.71 / 206.185)
=0.276247 / 0.372045
=0.7425

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)
=(206.185 / 206.185) / (163.589 / 163.589)
=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) / 2158.959) / (1 - (0 + 0) / 2326.907)
=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
=163.589 / 206.185
=0.7934

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))
=(0 / (0 + 0)) / (0 / (0 + 0))
= /
=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)
=(10.016 / 163.589) / (9.671 / 206.185)
=0.061227 / 0.046904
=1.3054

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)
=((285 + 0) / 2158.959) / ((453 + 0) / 2326.907)
=0.132008 / 0.194679
=0.6781

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
=(149.745 - 0 - 512.21) / 2158.959
=-0.167889

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.

FS Credit Opportunities has a M-score of -3.63 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 -3.63 mean?
FS Credit Opportunities (FSCO) has a Beneish M-Score of -3.63 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on FS Credit Opportunities and its competitors. According to the industry distribution chart, FS Credit Opportunities ranks #91 out of 954 companies in the Asset Management industry, placing it in the top 9.5%.
Is FS Credit Opportunities' Beneish M-Score too high?
FS Credit Opportunities' current Beneish M-Score is -3.63. Based on the distribution chart, FS Credit Opportunities ranks #91 out of 954 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, FS Credit Opportunities has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FS Credit Opportunities' Beneish M-Score compare to MUC and BUR?
According to the Asset Management industry distribution chart, FS Credit Opportunities ranks #91 out of 954 companies for Beneish M-Score. This places FS Credit Opportunities in the top 10% 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 an Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 FS Credit Opportunities and its competitors. FS Credit Opportunities's current Beneish M-Score is -3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FS Credit Opportunities stock overvalued right now?
Based on GuruFocus' analysis, FS Credit Opportunities (FSCO) is currently considered Fairly Valued. The stock's GF Value™ is $5.33, compared to a current price of $4.83 — trading 9.4% below its estimated fair value. The current Beneish M-Score is -3.63. FS Credit Opportunities' overall GF Score™ is 44/100 with 4 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 FS Credit Opportunities (FSCO), the current Beneish M-Score is -3.63 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 FS Credit Opportunities (FSCO) Overvalued in 2026?

Based on GuruFocus' analysis, FS Credit Opportunities stock appears to be undervalued. The current stock price of $4.83 is trading 9.4% below its estimated GF Value™ of $5.33. GuruFocus considers FS Credit Opportunities to be Fairly Valued.

Key valuation signals for FSCO:

  • Beneish M-Score: -3.63
  • GF Value™: $5.33 vs. price of $4.83 (9.4% below fair value)
  • GF Score™: 44/100 with 4 warning signs

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

FS Credit Opportunities Business Description

Address 3025 JFK Boulevard, Office 500, Philadelphia, PA, USA, 19104
FS Credit Opportunities Corp is a closed-end management investment company. The Fund's primary investment objective is to generate an attractive total return consisting of a high level of current income and capital appreciation, with a secondary objective of capital preservation. It predominantly invests in a portfolio of secured and unsecured floating and fixed-rate loans, bonds, and other types of credit instruments. The credit instruments in which it invests are typically rated below investment grade by rating agencies or would be rated below investment grade if rated. To achieve its investment objectives, the fund focuses on strategies such as Opportunistic Credit, Special Situations, and Capital Structure Solutions.
44GF Score

Get the complete analysis for FSCO

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

$4.83
Price
$5.33
GF Value