Ajial Real Estate & Entertainment Co (KUW:AREEC) Beneish M-Score: -2.66 (As of Jun. 28, 2026)


KUW:AREEC Ajial Real Estate & Entertainment Co KUW:AREEC
46 GF Score
Price KWD0.31
GF Value KWD0.34
Valuation Fairly Valued
! 6 Warning Signs
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What is Ajial Real Estate & Entertainment Co Beneish M-Score?

Ajial Real Estate & Entertainment Co KUW:AREEC 46 Beneish M-Score is -2.66 as of Jun. 28, 2026. GuruFocus rates KUW:AREEC with a GF Score™ of 46/100 and a GF Value™ of KWD0.34 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,684 Real Estate companies, Ajial Real Estate & Entertainment Co ranks better than 69.89% on this metric.

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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ajial Real Estate & Entertainment Co's Beneish M-Score or its related term are showing as below:

KUW:AREEC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.98   Med: -2.53   Max: 12.38
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Ajial Real Estate & Entertainment Co was 12.38. The lowest was -3.98. And the median was -2.53.

Ajial Real Estate & Entertainment Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Ajial Real Estate & Entertainment Co's Beneish M-Score can be seen below:

* 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.

Ajial Real Estate & Entertainment Co Beneish M-Score Chart

Ajial Real Estate & Entertainment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.86 -3.56 -1.04 -2.31 -2.56

Ajial Real Estate & Entertainment Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.38 -2.53 -2.32 -2.56 -2.66

KUW:AREEC vs CBRE, BEKE: Beneish M-Score Comparison

For the Real Estate Services subindustry, Ajial Real Estate & Entertainment Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ajial Real Estate & Entertainment Co Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Ajial Real Estate & Entertainment Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ajial Real Estate & Entertainment Co's Beneish M-Score falls into.


KUW:AREEC
46GF Score
Ajial Real Estate & Entertainment Co KUW:AREEC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Ajial Real Estate & Entertainment Co 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 Ajial Real Estate & Entertainment Co 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 * 0.7138+0.528 * 1.0085+0.404 * 0.9918+0.892 * 1.0673+0.115 * 0.8855
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9716+4.679 * 0.006817-0.327 * 0.9975
=-2.66

* 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 KWD0.32 Mil.
Revenue was 2.047 + 2.24 + 2.354 + 2.333 = KWD8.97 Mil.
Gross Profit was 1.409 + 1.573 + 1.583 + 1.534 = KWD6.10 Mil.
Total Current Assets was KWD8.40 Mil.
Total Assets was KWD178.53 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.49 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.22 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.15 Mil.
Total Current Liabilities was KWD6.72 Mil.
Long-Term Debt & Capital Lease Obligation was KWD30.00 Mil.
Net Income was 1.569 + 0.705 + 2.008 + 1.924 = KWD6.21 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 0.537 + 1.038 + 1.535 + 1.879 = KWD4.99 Mil.
 Total Receivables was KWD0.42 Mil.
Revenue was 1.939 + 2.106 + 2.159 + 2.204 = KWD8.41 Mil.
Gross Profit was 1.352 + 1.476 + 1.444 + 1.491 = KWD5.76 Mil.
Total Current Assets was KWD6.69 Mil.
Total Assets was KWD175.94 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.70 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.22 Mil.
Selling, General, & Admin. Expense(SGA) was KWD1.11 Mil.
Total Current Liabilities was KWD6.28 Mil.
Long-Term Debt & Capital Lease Obligation was KWD30.00 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)
=(0.323 / 8.974) / (0.424 / 8.408)
=0.035993 / 0.050428
=0.7138

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)
=(5.763 / 8.408) / (6.099 / 8.974)
=0.685419 / 0.67963
=1.0085

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 - (8.401 + 1.491) / 178.527) / (1 - (6.685 + 1.697) / 175.944)
=0.944591 / 0.95236
=0.9918

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
=8.974 / 8.408
=1.0673

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))
=(0.22 / (0.22 + 1.697)) / (0.222 / (0.222 + 1.491))
=0.114763 / 0.129597
=0.8855

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)
=(1.15 / 8.974) / (1.109 / 8.408)
=0.128148 / 0.131898
=0.9716

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)
=((30 + 6.716) / 178.527) / ((30 + 6.277) / 175.944)
=0.205661 / 0.206185
=0.9975

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
=(6.206 - 0 - 4.989) / 178.527
=0.006817

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.

Ajial Real Estate & Entertainment Co has a M-score of -2.66 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 -2.66 mean?
Ajial Real Estate & Entertainment Co (KUW:AREEC) has a Beneish M-Score of -2.66 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ajial Real Estate & Entertainment Co and its competitors. According to the industry distribution chart, Ajial Real Estate & Entertainment Co ranks #507 out of 1684 companies in the Real Estate industry, placing it in the top 30.1%.
Is Ajial Real Estate & Entertainment Co's Beneish M-Score too high?
Ajial Real Estate & Entertainment Co's current Beneish M-Score is -2.66. Based on the distribution chart, Ajial Real Estate & Entertainment Co ranks #507 out of 1684 companies in the Real Estate industry, which is above the industry midpoint. Overall, Ajial Real Estate & Entertainment Co has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ajial Real Estate & Entertainment Co's Beneish M-Score compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Ajial Real Estate & Entertainment Co ranks #507 out of 1684 companies for Beneish M-Score. This puts Ajial Real Estate & Entertainment Co in the upper 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 Real Estate company?
A good Beneish M-Score depends on the Real Estate 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 Ajial Real Estate & Entertainment Co and its competitors. Ajial Real Estate & Entertainment Co's current Beneish M-Score is -2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajial Real Estate & Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co (KUW:AREEC) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.34, compared to a current price of KWD0.31 — trading 9.1% below its estimated fair value. The current Beneish M-Score is -2.66. Ajial Real Estate & Entertainment Co's overall GF Score™ is 46/100 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 Ajial Real Estate & Entertainment Co (KUW:AREEC), the current Beneish M-Score is -2.66 as of Jun. 28, 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 Ajial Real Estate & Entertainment Co (KUW:AREEC) Overvalued in 2026?

Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co stock appears to be undervalued. The current stock price of KWD0.31 is trading 9.1% below its estimated GF Value™ of KWD0.34. GuruFocus considers Ajial Real Estate & Entertainment Co to be Fairly Valued.

Key valuation signals for KUW:AREEC:

  • Beneish M-Score: -2.66
  • GF Value™: KWD0.34 vs. price of KWD0.31 (9.1% below fair value)
  • GF Score™: 46/100 with 6 warning signs

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

Ajial Real Estate & Entertainment Co Business Description

Address Hawally, Block 5, Beirut Street, Al-Andalus Complex, 16th Floor, P.O. Box 44301, Hawally, KWT, 32058
Ajial Real Estate & Entertainment Co is engaged in all real estate activities including buying and selling lands, real estate and renting and leasing thereof inside and outside Kuwait. It establishes and maintains buildings and real estate projects including establishment of residential complexes thereof and commercial markets and entertainment centres, touristic facilities and building special accommodations. The group has three operating segments: real estate, entertainment and investment. The majority of the revenue is derived from real estate segments that comprise investment, rental of and trading in real estate and construction or development of real estate for the sale in the ordinary course of business and other related real estate services.
46GF Score

Get the complete analysis for KUW:AREEC

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

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Price
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