Garanti Faktoring AS (IST:GARFA) Beneish M-Score: -1.74 (As of Jun. 26, 2026)


IST:GARFA Garanti Faktoring AS IST:GARFA
24 GF Score
Price ₺29.96
GF Value ₺41.86
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Garanti Faktoring AS Beneish M-Score?

Garanti Faktoring AS IST:GARFA -1.19% 24 Beneish M-Score is -1.74 as of Jun. 26, 2026. GuruFocus rates IST:GARFA with a GF Score™ of 24/100 and a GF Value™ of ₺41.86 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 483 Credit Services companies, Garanti Faktoring AS ranks worse than 64.18% 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 -1.74 higher than -1.78, which implies that the company might have manipulated its financial results.

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

IST:GARFA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.12   Med: -1.85   Max: 0.44
Current: -1.74

During the past 13 years, the highest Beneish M-Score of Garanti Faktoring AS was 0.44. The lowest was -4.12. And the median was -1.85.

IST:GARFA
24GF Score
Garanti Faktoring AS IST:GARFA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Garanti Faktoring AS 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 Garanti Faktoring AS 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 * 1+0.528 * 1+0.404 * 1.0006+0.892 * 1.6187+0.115 * 0.7475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0348+4.679 * 0.053307-0.327 * 1.0789
=-1.74

* 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 ₺0 Mil.
Revenue was 1196.777 + 1168.01 + 1124.347 + 960.679 = ₺4,450 Mil.
Gross Profit was 1196.777 + 1168.01 + 1124.347 + 960.679 = ₺4,450 Mil.
Total Current Assets was ₺0 Mil.
Total Assets was ₺41,468 Mil.
Property, Plant and Equipment(Net PPE) was ₺41 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺51 Mil.
Selling, General, & Admin. Expense(SGA) was ₺14 Mil.
Total Current Liabilities was ₺0 Mil.
Long-Term Debt & Capital Lease Obligation was ₺34,914 Mil.
Net Income was 682.431 + 546.34 + 621.546 + 552.727 = ₺2,403 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₺0 Mil.
Cash Flow from Operations was -355.233 + 1061.461 + 256.047 + -769.775 = ₺193 Mil.
 Total Receivables was ₺0 Mil.
Revenue was 734.911 + 685.579 + 664.808 + 663.716 = ₺2,749 Mil.
Gross Profit was 734.911 + 685.579 + 664.808 + 663.716 = ₺2,749 Mil.
Total Current Assets was ₺0 Mil.
Total Assets was ₺19,534 Mil.
Property, Plant and Equipment(Net PPE) was ₺31 Mil.
Depreciation, Depletion and Amortization(DDA) was ₺22 Mil.
Selling, General, & Admin. Expense(SGA) was ₺8 Mil.
Total Current Liabilities was ₺0 Mil.
Long-Term Debt & Capital Lease Obligation was ₺15,243 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)
=(0 / 4449.813) / (0 / 2749.014)
=0 / 0
=1

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)
=(2749.014 / 2749.014) / (4449.813 / 4449.813)
=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 + 41.183) / 41468.299) / (1 - (0 + 30.703) / 19533.973)
=0.999007 / 0.998428
=1.0006

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
=4449.813 / 2749.014
=1.6187

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))
=(21.682 / (21.682 + 30.703)) / (51.1 / (51.1 + 41.183))
=0.413897 / 0.553731
=0.7475

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)
=(13.757 / 4449.813) / (8.214 / 2749.014)
=0.003092 / 0.002988
=1.0348

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)
=((34914.166 + 0) / 41468.299) / ((15243.374 + 0) / 19533.973)
=0.841948 / 0.780352
=1.0789

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
=(2403.044 - 0 - 192.5) / 41468.299
=0.053307

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.

Garanti Faktoring AS has a M-score of -1.74 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 -1.74 mean?
Garanti Faktoring AS (IST:GARFA) has a Beneish M-Score of -1.74 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Garanti Faktoring AS and its competitors. According to the industry distribution chart, Garanti Faktoring AS ranks #310 out of 483 companies in the Credit Services industry, placing it in the top 64.2%.
Is Garanti Faktoring AS's Beneish M-Score too high?
Garanti Faktoring AS's current Beneish M-Score is -1.74. Based on the distribution chart, Garanti Faktoring AS ranks #310 out of 483 companies in the Credit Services industry, which is below the industry midpoint. Overall, Garanti Faktoring AS has a GF Score™ of 24/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Garanti Faktoring AS's Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, Garanti Faktoring AS ranks #310 out of 483 companies for Beneish M-Score. This places Garanti Faktoring AS 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 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 Garanti Faktoring AS and its competitors. Garanti Faktoring AS's current Beneish M-Score is -1.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Garanti Faktoring AS stock overvalued right now?
Based on GuruFocus' analysis, Garanti Faktoring AS (IST:GARFA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₺41.86, compared to a current price of ₺29.96 — trading 28.4% below its estimated fair value. The current Beneish M-Score is -1.74. Garanti Faktoring AS's overall GF Score™ is 24/100 with 1 warning sign 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 Garanti Faktoring AS (IST:GARFA), the current Beneish M-Score is -1.74 as of Jun. 26, 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 Garanti Faktoring AS (IST:GARFA) Overvalued in 2026?

Based on GuruFocus' analysis, Garanti Faktoring AS stock appears to be undervalued. The current stock price of ₺29.96 is trading 28.4% below its estimated GF Value™ of ₺41.86. GuruFocus considers Garanti Faktoring AS to be Modestly Undervalued.

Key valuation signals for IST:GARFA:

  • Beneish M-Score: -1.74
  • GF Value™: ₺41.86 vs. price of ₺29.96 (28.4% below fair value)
  • GF Score™: 24/100 with 1 warning sign

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

Garanti Faktoring AS Business Description

Address Maslak Mahalles Eski Buyukdere Caddesi No. 23, Sariyer, Istanbul, TUR, 34398
Garanti Faktoring AS is a Turkish company which offers factoring services where time receivables of companies arising out of their domestic and overseas service sales are taken over by Garanti to offer one or more of financing, guarantee and collection services. The company focuses on trade financing and receivable-based financing and provides financing, guarantee and collection products. It offers financing service to customers whose goods/services sales are realized on the account and as check account sales and delivers regular cash flow. The company also affords supplier financing to supplier companies the benefit of payment of their receivables without waiting for maturity, and to buyer companies the benefit of payment due date extension.
24GF Score

Get the complete analysis for IST:GARFA

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

₺29.96
Price
₺41.86
GF Value