OUTsurance Group (JSE:OUT) Beneish M-Score: -2.42 (As of Jun. 26, 2026)


JSE:OUT OUTsurance Group Ltd JSE:OUT
65 GF Score
Price R77.34
GF Value R46.46
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is OUTsurance Group Beneish M-Score?

OUTsurance Group JSE:OUT +0.35% 65 Beneish M-Score is -2.42 as of Jun. 26, 2026. GuruFocus rates JSE:OUT with a GF Score™ of 65/100 and a GF Value™ of R46.46 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 397 Insurance companies, OUTsurance Group ranks worse than 59.7% 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:OUT' s Beneish M-Score Range Over the Past 10 Years
Min: -14.8   Med: -2.36   Max: 0.7
Current: -2.42

During the past 13 years, the highest Beneish M-Score of OUTsurance Group was 0.70. The lowest was -14.80. And the median was -2.36.

JSE:OUT
65GF Score
OUTsurance Group Ltd JSE:OUT
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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OUTsurance 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 OUTsurance 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 * 1.1838+0.528 * 1+0.404 * 1.0031+0.892 * 1.1921+0.115 * 0.8078
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1814+4.679 * -0.039044-0.327 * 1.1426
=-2.42

* 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 (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was R1,867 Mil.
Revenue was R38,432 Mil.
Gross Profit was R38,432 Mil.
Total Current Assets was R0 Mil.
Total Assets was R38,649 Mil.
Property, Plant and Equipment(Net PPE) was R1,559 Mil.
Depreciation, Depletion and Amortization(DDA) was R290 Mil.
Selling, General, & Admin. Expense(SGA) was R4,304 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R379 Mil.
Net Income was R4,707 Mil.
Gross Profit was R21 Mil.
Cash Flow from Operations was R6,195 Mil.
 Total Receivables was R1,323 Mil.
Revenue was R32,239 Mil.
Gross Profit was R32,239 Mil.
Total Current Assets was R0 Mil.
Total Assets was R34,257 Mil.
Property, Plant and Equipment(Net PPE) was R1,482 Mil.
Depreciation, Depletion and Amortization(DDA) was R215 Mil.
Selling, General, & Admin. Expense(SGA) was R3,056 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R294 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)
=(1867 / 38432) / (1323 / 32239)
=0.048579 / 0.041037
=1.1838

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)
=(32239 / 32239) / (38432 / 38432)
=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 + 1559) / 38649) / (1 - (0 + 1482) / 34257)
=0.959663 / 0.956739
=1.0031

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
=38432 / 32239
=1.1921

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))
=(215 / (215 + 1482)) / (290 / (290 + 1559))
=0.126694 / 0.156842
=0.8078

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)
=(4304 / 38432) / (3056 / 32239)
=0.11199 / 0.094792
=1.1814

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)
=((379 + 0) / 38649) / ((294 + 0) / 34257)
=0.009806 / 0.008582
=1.1426

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
=(4707 - 21 - 6195) / 38649
=-0.039044

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.

OUTsurance Group has a M-score of -2.42 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 -2.42 mean?
OUTsurance Group (JSE:OUT) has a Beneish M-Score of -2.42 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on OUTsurance Group and its competitors. According to the industry distribution chart, OUTsurance Group ranks #237 out of 397 companies in the Insurance industry, placing it in the top 59.7%.
Is OUTsurance Group's Beneish M-Score too high?
OUTsurance Group's current Beneish M-Score is -2.42. Based on the distribution chart, OUTsurance Group ranks #237 out of 397 companies in the Insurance industry, which is below the industry midpoint. Overall, OUTsurance Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OUTsurance Group's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, OUTsurance Group ranks #237 out of 397 companies for Beneish M-Score. This places OUTsurance 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 OUTsurance Group and its competitors. OUTsurance Group's current Beneish M-Score is -2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OUTsurance Group stock overvalued right now?
Based on GuruFocus' analysis, OUTsurance Group (JSE:OUT) is currently considered Significantly Overvalued. The stock's GF Value™ is R46.46, compared to a current price of R77.34 — trading 66.5% above its estimated fair value. The current Beneish M-Score is -2.42. OUTsurance Group's overall GF Score™ is 65/100 with 3 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 OUTsurance Group (JSE:OUT), the current Beneish M-Score is -2.42 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 OUTsurance Group (JSE:OUT) Overvalued in 2026?

Based on GuruFocus' analysis, OUTsurance Group stock appears to be overvalued. The current stock price of R77.34 is trading 66.5% above its estimated GF Value™ of R46.46. GuruFocus considers OUTsurance Group to be Significantly Overvalued.

Key valuation signals for JSE:OUT:

  • Beneish M-Score: -2.42
  • GF Value™: R46.46 vs. price of R77.34 (66.5% above fair value)
  • GF Score™: 65/100 with 3 warning signs

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

OUTsurance Group Business Description

Address 1241 Embankment Road, Zwartkop Extension 7, Centurion, GT, ZAF, 0157
OUTsurance Group Ltd is an insurance group that specialises in Property and Casualty insurance. Its main segments include personal insurance, business insurance, compulsory third-party vehicle insurance, life insurance, and administration services. The company provides motor, home, business, life, funeral, and pet insurance products through its subsidiaries. The company's primary source of revenue is insurance premiums. The group's activities are focused on the South African, Australian and Irish markets.
65GF Score

Get the complete analysis for JSE:OUT

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

R77.34
Price
R46.46
GF Value