Bank AL Habib (KAR:BAHL) Beneish M-Score: -3.38 (As of Jun. 27, 2026)


KAR:BAHL Bank AL Habib Ltd KAR:BAHL
65 GF Score
Price ₨167.95
GF Value ₨115.83
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Bank AL Habib Beneish M-Score?

Bank AL Habib KAR:BAHL 65 Beneish M-Score is -3.38 as of Jun. 27, 2026. GuruFocus rates KAR:BAHL with a GF Score™ of 65/100 and a GF Value™ of ₨115.83 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,397 Banks companies, Bank AL Habib ranks better than 96.71% 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 -3.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KAR:BAHL' s Beneish M-Score Range Over the Past 10 Years
Min: -11.39   Med: -2.8   Max: -1.73
Current: -3.38

During the past 13 years, the highest Beneish M-Score of Bank AL Habib was -1.73. The lowest was -11.39. And the median was -2.80.

KAR:BAHL
65GF Score
Bank AL Habib Ltd KAR:BAHL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank AL Habib 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 Bank AL Habib 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 * 0.9995+0.892 * 0.8773+0.115 * 0.8625
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.7208+4.679 * -0.081078-0.327 * 1.2892
=-3.38

* 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 39561.073 + 37783.709 + 40502.523 + 40382.583 = ₨158,230 Mil.
Gross Profit was 39561.073 + 37783.709 + 40502.523 + 40382.583 = ₨158,230 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨3,636,811 Mil.
Property, Plant and Equipment(Net PPE) was ₨101,780 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨11,317 Mil.
Selling, General, & Admin. Expense(SGA) was ₨5,648 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨64,307 Mil.
Net Income was 7267.294 + 5783.089 + 6877.654 + 9111.063 = ₨29,039 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 263691.25 + 189899.279 + -83364.642 + -46321.063 = ₨323,905 Mil.
 Total Receivables was ₨0 Mil.
Revenue was 42007.722 + 45237.558 + 48991.082 + 44118.775 = ₨180,355 Mil.
Gross Profit was 42007.722 + 45237.558 + 48991.082 + 44118.775 = ₨180,355 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨3,426,050 Mil.
Property, Plant and Equipment(Net PPE) was ₨94,314 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨8,909 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,366 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨46,993 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 / 158229.888) / (0 / 180355.137)
=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)
=(180355.137 / 180355.137) / (158229.888 / 158229.888)
=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 + 101779.703) / 3636810.986) / (1 - (0 + 94313.744) / 3426050.209)
=0.972014 / 0.972472
=0.9995

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
=158229.888 / 180355.137
=0.8773

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))
=(8909.003 / (8909.003 + 94313.744)) / (11316.813 / (11316.813 + 101779.703))
=0.086309 / 0.100063
=0.8625

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)
=(5648.321 / 158229.888) / (2366.184 / 180355.137)
=0.035697 / 0.01312
=2.7208

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)
=((64307.073 + 0) / 3636810.986) / ((46993.32 + 0) / 3426050.209)
=0.017682 / 0.013716
=1.2892

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
=(29039.1 - 0 - 323904.824) / 3636810.986
=-0.081078

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.

Bank AL Habib has a M-score of -3.38 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 -3.38 mean?
Bank AL Habib (KAR:BAHL) has a Beneish M-Score of -3.38 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank AL Habib and its competitors. According to the industry distribution chart, Bank AL Habib ranks #46 out of 1397 companies in the Banks industry, placing it in the top 3.3%.
Is Bank AL Habib's Beneish M-Score too high?
Bank AL Habib's current Beneish M-Score is -3.38. Based on the distribution chart, Bank AL Habib ranks #46 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Bank AL Habib has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank AL Habib's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Bank AL Habib ranks #46 out of 1397 companies for Beneish M-Score. This places Bank AL Habib in the top 3% 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 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 Bank AL Habib and its competitors. Bank AL Habib's current Beneish M-Score is -3.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank AL Habib stock overvalued right now?
Based on GuruFocus' analysis, Bank AL Habib (KAR:BAHL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨115.83, compared to a current price of ₨167.95 — trading 45% above its estimated fair value. The current Beneish M-Score is -3.38. Bank AL Habib's overall GF Score™ is 65/100 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 Bank AL Habib (KAR:BAHL), the current Beneish M-Score is -3.38 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 Bank AL Habib (KAR:BAHL) Overvalued in 2026?

Based on GuruFocus' analysis, Bank AL Habib stock appears to be overvalued. The current stock price of ₨167.95 is trading 45% above its estimated GF Value™ of ₨115.83. GuruFocus considers Bank AL Habib to be Significantly Overvalued.

Key valuation signals for KAR:BAHL:

  • Beneish M-Score: -3.38
  • GF Value™: ₨115.83 vs. price of ₨167.95 (45% above fair value)
  • GF Score™: 65/100 with 4 warning signs

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

Bank AL Habib Business Description

Address I.I. Chundrigar Road, 2nd Floor, Mackinnons Building, Karachi, SD, PAK
Bank AL Habib Ltd is a banking company in Pakistan. It provides banking services consisting of retail banking, current & savings accounts, credit cards, consumer banking products, provision of banking & other financial services to individual customers, small merchants & small-medium enterprises. The company also provides commercial banking such as banking services including treasury & international trade-related activities to large corporate customers, multinational companies, and government, & semi-government departments & institutions. Geographically, it operates in Pakistan, the Middle East & Asia- Pacific. The majority of revenue is from the Commercial banking segment.
65GF Score

Get the complete analysis for KAR:BAHL

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

₨167.95
Price
₨115.83
GF Value