Finbond Group (JSE:FGL) Beneish M-Score: -2.12 (As of Jun. 26, 2026)


JSE:FGL Finbond Group Ltd JSE:FGL
34 GF Score
Price R0.90
GF Value R0.92
Valuation Fairly Valued
! 6 Warning Signs
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What is Finbond Group Beneish M-Score?

Finbond Group JSE:FGL -1.10% 34 Beneish M-Score is -2.12 as of Jun. 26, 2026. GuruFocus rates JSE:FGL with a GF Score™ of 34/100 and a GF Value™ of R0.92 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,397 Banks companies, Finbond Group ranks worse than 85.83% 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 -2.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:FGL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.36   Max: -1.8
Current: -2.12

During the past 13 years, the highest Beneish M-Score of Finbond Group was -1.80. The lowest was -3.50. And the median was -2.36.

JSE:FGL
34GF Score
Finbond Group Ltd JSE:FGL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Finbond Group 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 Finbond Group 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 * 0.9946+0.892 * 1.0253+0.115 * 0.9849
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7562+4.679 * 0.070459-0.327 * 1.0884
=-2.12

* 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 R1,097 Mil.
Gross Profit was R1,097 Mil.
Total Current Assets was R0 Mil.
Total Assets was R4,410 Mil.
Property, Plant and Equipment(Net PPE) was R353 Mil.
Depreciation, Depletion and Amortization(DDA) was R140 Mil.
Selling, General, & Admin. Expense(SGA) was R38 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R3,240 Mil.
Net Income was R69 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R-241 Mil.
 Total Receivables was R0 Mil.
Revenue was R1,070 Mil.
Gross Profit was R1,070 Mil.
Total Current Assets was R0 Mil.
Total Assets was R4,528 Mil.
Property, Plant and Equipment(Net PPE) was R340 Mil.
Depreciation, Depletion and Amortization(DDA) was R132 Mil.
Selling, General, & Admin. Expense(SGA) was R50 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R3,056 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 / 1096.978) / (0 / 1069.867)
=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)
=(1069.867 / 1069.867) / (1096.978 / 1096.978)
=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 + 352.955) / 4410.013) / (1 - (0 + 339.649) / 4527.784)
=0.919965 / 0.924986
=0.9946

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
=1096.978 / 1069.867
=1.0253

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))
=(131.722 / (131.722 + 339.649)) / (139.805 / (139.805 + 352.955))
=0.279444 / 0.283718
=0.9849

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)
=(38.445 / 1096.978) / (49.58 / 1069.867)
=0.035046 / 0.046342
=0.7562

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)
=((3239.591 + 0) / 4410.013) / ((3055.949 + 0) / 4527.784)
=0.734599 / 0.674933
=1.0884

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
=(69.364 - 0 - -241.36) / 4410.013
=0.070459

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.

Finbond Group has a M-score of -2.12 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 -2.12 mean?
Finbond Group (JSE:FGL) has a Beneish M-Score of -2.12 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Finbond Group and its competitors. According to the industry distribution chart, Finbond Group ranks #1199 out of 1397 companies in the Banks industry, placing it in the top 85.8%.
Is Finbond Group's Beneish M-Score too high?
Finbond Group's current Beneish M-Score is -2.12. Based on the distribution chart, Finbond Group ranks #1199 out of 1397 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Finbond Group has a GF Score™ of 34/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Finbond Group's Beneish M-Score compare to RKT and FNMA?
According to the Banks industry distribution chart, Finbond Group ranks #1199 out of 1397 companies for Beneish M-Score. This places Finbond Group 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 Finbond Group and its competitors. Finbond Group's current Beneish M-Score is -2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finbond Group stock overvalued right now?
Based on GuruFocus' analysis, Finbond Group (JSE:FGL) is currently considered Fairly Valued. The stock's GF Value™ is R0.92, compared to a current price of R0.90 — trading 2.2% below its estimated fair value. The current Beneish M-Score is -2.12. Finbond Group's overall GF Score™ is 34/100 with 6 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 Finbond Group (JSE:FGL), the current Beneish M-Score is -2.12 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 Finbond Group (JSE:FGL) Overvalued in 2026?

Based on GuruFocus' analysis, Finbond Group stock appears to be undervalued. The current stock price of R0.90 is trading 2.2% below its estimated GF Value™ of R0.92. GuruFocus considers Finbond Group to be Fairly Valued.

Key valuation signals for JSE:FGL:

  • Beneish M-Score: -2.12
  • GF Value™: R0.92 vs. price of R0.90 (2.2% below fair value)
  • GF Score™: 34/100 with 6 warning signs

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

Finbond Group Business Description

Address 446 Rigel Avenue South, Rigel Park, Erasmusrand, Pretoria, GT, ZAF, 0181
Finbond Group Ltd is a financial services institution that is engaged in the design and delivery of value and solution-based savings, credit, and insurance solutions tailored to depositor and borrower requirements. The company's business segments are Deposit and Debt Finance Products, Lending, Property investment, and Transactional banking, and Others. It derives key revenue from the Lending segment. Company opertes in USA, South Africa, and Canada, with majority of revenue from USA.
34GF Score

Get the complete analysis for JSE:FGL

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

R0.90
Price
R0.92
GF Value