EFU General Insurance (KAR:EFUG) Beneish M-Score: -2.02 (As of Jul. 15, 2026)

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KAR:EFUG EFU General Insurance Ltd KAR:EFUG
66 GF Score
Price ₨122.01
GF Value ₨126.98
Valuation Fairly Valued
! 5 Warning Signs
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What is EFU General Insurance Beneish M-Score?

EFU General Insurance KAR:EFUG -0.43% 66 Beneish M-Score is -2.02 as of Jul. 15, 2026. GuruFocus rates KAR:EFUG with a GF Score™ of 66/100 and a GF Value™ of ₨126.98 (Fairly Valued). The stock has 5 warning signs investors should review. Among 398 Insurance companies, EFU General Insurance ranks worse than 82.66% 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 -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KAR:EFUG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.95   Med: -2.2   Max: -1.68
Current: -2.02

During the past 13 years, the highest Beneish M-Score of EFU General Insurance was -1.68. The lowest was -3.95. And the median was -2.20.

KAR:EFUG
66GF Score
EFU General Insurance Ltd KAR:EFUG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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EFU General Insurance 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 EFU General Insurance 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 * 1.3332+0.528 * 1+0.404 * 1.0007+0.892 * 0.9431+0.115 * 0.9133
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9867+4.679 * 0.056285-0.327 * 1.1722
=-2.02

* 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 ₨11,495 Mil.
Revenue was 12269.482 + 32767.674 + 42526.1 + 26019.63 = ₨113,583 Mil.
Gross Profit was 12269.482 + 32767.674 + 42526.1 + 26019.63 = ₨113,583 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨364,620 Mil.
Property, Plant and Equipment(Net PPE) was ₨10,518 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨-18,784 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,294 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨1,213 Mil.
Net Income was 1115.293 + 1310.231 + 1869.043 + 1249.022 = ₨5,544 Mil.
Non Operating Income was 42.501 + 132.717 + 39.078 + 42.88 = ₨257 Mil.
Cash Flow from Operations was -3038.408 + -1562.587 + -5575.465 + -5059.62 = ₨-15,236 Mil.
 Total Receivables was ₨9,142 Mil.
Revenue was 24513.378 + 40597.169 + 27403.979 + 27917.593 = ₨120,432 Mil.
Gross Profit was 24513.378 + 40597.169 + 27403.979 + 27917.593 = ₨120,432 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨337,777 Mil.
Property, Plant and Equipment(Net PPE) was ₨9,978 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨-19,256 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,465 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨959 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)
=(11494.655 / 113582.886) / (9141.847 / 120432.119)
=0.101201 / 0.075909
=1.3332

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)
=(120432.119 / 120432.119) / (113582.886 / 113582.886)
=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 + 10518.259) / 364619.966) / (1 - (0 + 9977.686) / 337776.555)
=0.971153 / 0.970461
=1.0007

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
=113582.886 / 120432.119
=0.9431

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))
=(-19255.608 / (-19255.608 + 9977.686)) / (-18784.43 / (-18784.43 + 10518.259))
=2.075422 / 2.272446
=0.9133

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)
=(2294.209 / 113582.886) / (2465.356 / 120432.119)
=0.020199 / 0.020471
=0.9867

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)
=((1213.388 + 0) / 364619.966) / ((958.857 + 0) / 337776.555)
=0.003328 / 0.002839
=1.1722

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
=(5543.589 - 257.176 - -15236.08) / 364619.966
=0.056285

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.

EFU General Insurance has a M-score of -2.02 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 -2.02 mean?
EFU General Insurance (KAR:EFUG) has a Beneish M-Score of -2.02 as of Jul. 15, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on EFU General Insurance and its competitors. According to the industry distribution chart, EFU General Insurance ranks #329 out of 398 companies in the Insurance industry, placing it in the top 82.7%.
Is EFU General Insurance's Beneish M-Score too high?
EFU General Insurance's current Beneish M-Score is -2.02. Based on the distribution chart, EFU General Insurance ranks #329 out of 398 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, EFU General Insurance has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EFU General Insurance's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, EFU General Insurance ranks #329 out of 398 companies for Beneish M-Score. This places EFU General Insurance 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 EFU General Insurance and its competitors. EFU General Insurance's current Beneish M-Score is -2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EFU General Insurance stock overvalued right now?
Based on GuruFocus' analysis, EFU General Insurance (KAR:EFUG) is currently considered Fairly Valued. The stock's GF Value™ is ₨126.98, compared to a current price of ₨122.01 — trading 3.9% below its estimated fair value. The current Beneish M-Score is -2.02. EFU General Insurance's overall GF Score™ is 66/100 with 5 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 EFU General Insurance (KAR:EFUG), the current Beneish M-Score is -2.02 as of Jul. 15, 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 EFU General Insurance (KAR:EFUG) Overvalued in 2026?

Based on GuruFocus' analysis, EFU General Insurance stock appears to be undervalued. The current stock price of ₨122.01 is trading 3.9% below its estimated GF Value™ of ₨126.98. GuruFocus considers EFU General Insurance to be Fairly Valued.

Key valuation signals for KAR:EFUG:

  • Beneish M-Score: -2.02
  • GF Value™: ₨126.98 vs. price of ₨122.01 (3.9% below fair value)
  • GF Score™: 66/100 with 5 warning signs

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

EFU General Insurance Business Description

Address EFU House, M.A. Jinnah Road, P.O. Box 5005, Karachi, SD, PAK, 74000
EFU General Insurance Ltd is a non-life insurer in Pakistan, providing insurance and takaful solutions to commercial, industrial, and individual clients across retail, SME, and corporate segments. Its product portfolio includes Fire and Property Damage, Marine, Aviation and Transport, Motor, Miscellaneous insurance, and Window Takaful. Fire and Property Damage, the maximum revenue segment, covers risks such as fire, earthquake, flood, explosion, machinery breakdown, boiler damage, and business interruption, compensating customers for property loss or damage and loss of earnings. Other segments include Marine, Aviation and Transport, Motor, and Miscellaneous, with the majority of revenue generated from Pakistan.
66GF Score

Get the complete analysis for KAR:EFUG

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

₨122.01
Price
₨126.98
GF Value