Capitec Bank Holdings (JSE:CPI) Beneish M-Score: -2.25 (As of Jun. 26, 2026)


JSE:CPI Capitec Bank Holdings Ltd JSE:CPI
89 GF Score
Price R4,693.82
GF Value R4,231.43
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Capitec Bank Holdings Beneish M-Score?

Capitec Bank Holdings JSE:CPI +0.46% 89 Beneish M-Score is -2.25 as of Jun. 26, 2026. GuruFocus rates JSE:CPI with a GF Score™ of 89/100 and a GF Value™ of R4,231.43 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,397 Banks companies, Capitec Bank Holdings ranks worse than 74.8% 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:CPI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Med: -2.54   Max: -2.25
Current: -2.25

During the past 13 years, the highest Beneish M-Score of Capitec Bank Holdings was -2.25. The lowest was -3.05. And the median was -2.54.

JSE:CPI
89GF Score
Capitec Bank Holdings Ltd JSE:CPI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Capitec Bank Holdings 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 Capitec Bank Holdings 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 * 1.0023+0.892 * 1.1903+0.115 * 0.934
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0932+4.679 * -0.007975-0.327 * 0.6251
=-2.25

* 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 (Feb26) TTM:Last Year (Feb25) TTM:
Total Receivables was R0 Mil.
Revenue was R52,094 Mil.
Gross Profit was R52,094 Mil.
Total Current Assets was R0 Mil.
Total Assets was R263,284 Mil.
Property, Plant and Equipment(Net PPE) was R5,818 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,584 Mil.
Selling, General, & Admin. Expense(SGA) was R1,391 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R3,639 Mil.
Net Income was R16,833 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R18,933 Mil.
 Total Receivables was R0 Mil.
Revenue was R43,767 Mil.
Gross Profit was R43,767 Mil.
Total Current Assets was R0 Mil.
Total Assets was R238,464 Mil.
Property, Plant and Equipment(Net PPE) was R5,806 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,450 Mil.
Selling, General, & Admin. Expense(SGA) was R1,069 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R5,273 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 / 52093.645) / (0 / 43766.696)
=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)
=(43766.696 / 43766.696) / (52093.645 / 52093.645)
=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 + 5818.422) / 263283.842) / (1 - (0 + 5805.728) / 238463.672)
=0.977901 / 0.975654
=1.0023

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
=52093.645 / 43766.696
=1.1903

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))
=(1449.902 / (1449.902 + 5805.728)) / (1583.591 / (1583.591 + 5818.422))
=0.199831 / 0.213941
=0.934

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)
=(1391.043 / 52093.645) / (1069.047 / 43766.696)
=0.026703 / 0.024426
=1.0932

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)
=((3639.187 + 0) / 263283.842) / ((5272.81 + 0) / 238463.672)
=0.013822 / 0.022112
=0.6251

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
=(16833.389 - 0 - 18933.155) / 263283.842
=-0.007975

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.

Capitec Bank Holdings has a M-score of -2.25 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 -2.25 mean?
Capitec Bank Holdings (JSE:CPI) has a Beneish M-Score of -2.25 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Capitec Bank Holdings and its competitors. According to the industry distribution chart, Capitec Bank Holdings ranks #1045 out of 1397 companies in the Banks industry, placing it in the top 74.8%.
Is Capitec Bank Holdings' Beneish M-Score too high?
Capitec Bank Holdings' current Beneish M-Score is -2.25. Based on the distribution chart, Capitec Bank Holdings ranks #1045 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Capitec Bank Holdings has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capitec Bank Holdings' Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Capitec Bank Holdings ranks #1045 out of 1397 companies for Beneish M-Score. This places Capitec Bank Holdings 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 Capitec Bank Holdings and its competitors. Capitec Bank Holdings's current Beneish M-Score is -2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capitec Bank Holdings stock overvalued right now?
Based on GuruFocus' analysis, Capitec Bank Holdings (JSE:CPI) is currently considered Modestly Overvalued. The stock's GF Value™ is R4,231.43, compared to a current price of R4,693.82 — trading 10.9% above its estimated fair value. The current Beneish M-Score is -2.25. Capitec Bank Holdings' overall GF Score™ is 89/100 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 Capitec Bank Holdings (JSE:CPI), the current Beneish M-Score is -2.25 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 Capitec Bank Holdings (JSE:CPI) Overvalued in 2026?

Based on GuruFocus' analysis, Capitec Bank Holdings stock appears to be overvalued. The current stock price of R4,693.82 is trading 10.9% above its estimated GF Value™ of R4,231.43. GuruFocus considers Capitec Bank Holdings to be Modestly Overvalued.

Key valuation signals for JSE:CPI:

  • Beneish M-Score: -2.25
  • GF Value™: R4,231.43 vs. price of R4,693.82 (10.9% above fair value)
  • GF Score™: 89/100 with 1 warning sign

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

Capitec Bank Holdings Business Description

Address 5 Neutron Road, Techno Park, Stellenbosch, WC, ZAF, 7600
Capitec Bank Holdings Ltd is a bank holding company along with its subsidiary, which conducts personal and business banking, online consumer lending, rental financing, holds an insurance cell captive, and has an insurance licence for life products. Its segments are Personal Banking, Business Banking, and the Insurance business.
89GF Score

Get the complete analysis for JSE:CPI

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

R4,693.82
Price
R4,231.43
GF Value