Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) Beneish M-Score: -2.86 (As of Aug. 25, 2026)

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KUW:ARZAN Arzan Financial Group for Financing and Investment KPSC KUW:ARZAN
16 GF Score
Price KWD0.31
GF Value KWD0.22
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Arzan Financial Group for Financing and Investment KPSC Beneish M-Score?

Arzan Financial Group for Financing and Investment KPSC KUW:ARZAN -1.27% 16 Beneish M-Score is -2.86 as of Aug. 25, 2026. GuruFocus rates KUW:ARZAN with a GF Score™ of 16/100 and a GF Value™ of KWD0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 956 Asset Management companies, Arzan Financial Group for Financing and Investment KPSC ranks better than 77.72% 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Arzan Financial Group for Financing and Investment KPSC's Beneish M-Score or its related term are showing as below:

KUW:ARZAN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.38   Med: -2.12   Max: 1.46
Current: -2.86

During the past 13 years, the highest Beneish M-Score of Arzan Financial Group for Financing and Investment KPSC was 1.46. The lowest was -4.38. And the median was -2.12.

KUW:ARZAN
16GF Score
Arzan Financial Group for Financing and Investment KPSC KUW:ARZAN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arzan Financial Group for Financing and Investment KPSC 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 Arzan Financial Group for Financing and Investment KPSC 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 * 1.0009+0.892 * 0.6267+0.115 * 0.9624
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.3214+4.679 * 0.079313-0.327 * 1.0311
=-2.86

* 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 (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was KWD0.00 Mil.
Revenue was 6.878 + 0.541 + 0.879 + 3.015 = KWD11.31 Mil.
Gross Profit was 6.878 + 0.541 + 0.879 + 3.015 = KWD11.31 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD374.08 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.68 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.22 Mil.
Selling, General, & Admin. Expense(SGA) was KWD4.47 Mil.
Total Current Liabilities was KWD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD70.47 Mil.
Net Income was 1.682 + 7.705 + 3.504 + 10.351 = KWD23.24 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was -2.706 + 2.23 + -3.306 + -2.645 = KWD-6.43 Mil.
 Total Receivables was KWD0.00 Mil.
Revenue was 4.932 + 2.64 + 1.156 + 9.324 = KWD18.05 Mil.
Gross Profit was 4.932 + 2.64 + 1.156 + 9.324 = KWD18.05 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD338.33 Mil.
Property, Plant and Equipment(Net PPE) was KWD1.84 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.23 Mil.
Selling, General, & Admin. Expense(SGA) was KWD2.15 Mil.
Total Current Liabilities was KWD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD61.81 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 / 11.313) / (0 / 18.052)
=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)
=(18.052 / 18.052) / (11.313 / 11.313)
=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 + 1.681) / 374.077) / (1 - (0 + 1.836) / 338.331)
=0.995506 / 0.994573
=1.0009

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
=11.313 / 18.052
=0.6267

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))
=(0.227 / (0.227 + 1.836)) / (0.217 / (0.217 + 1.681))
=0.110034 / 0.114331
=0.9624

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)
=(4.471 / 11.313) / (2.148 / 18.052)
=0.395209 / 0.11899
=3.3214

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)
=((70.468 + 0) / 374.077) / ((61.811 + 0) / 338.331)
=0.188378 / 0.182694
=1.0311

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
=(23.242 - 0 - -6.427) / 374.077
=0.079313

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.

Arzan Financial Group for Financing and Investment KPSC has a M-score of -2.86 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 -2.86 mean?
Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) has a Beneish M-Score of -2.86 as of Aug. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arzan Financial Group for Financing and Investment KPSC and its competitors. According to the industry distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #213 out of 956 companies in the Asset Management industry, placing it in the top 22.3%.
Is Arzan Financial Group for Financing and Investment KPSC's Beneish M-Score too high?
Arzan Financial Group for Financing and Investment KPSC's current Beneish M-Score is -2.86. Based on the distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #213 out of 956 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Arzan Financial Group for Financing and Investment KPSC has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arzan Financial Group for Financing and Investment KPSC's Beneish M-Score compare to BLK and BX?
According to the Asset Management industry distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #213 out of 956 companies for Beneish M-Score. This places Arzan Financial Group for Financing and Investment KPSC in the top 22% 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 an Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 Arzan Financial Group for Financing and Investment KPSC and its competitors. Arzan Financial Group for Financing and Investment KPSC's current Beneish M-Score is -2.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arzan Financial Group for Financing and Investment KPSC stock overvalued right now?
Based on GuruFocus' analysis, Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.22, compared to a current price of KWD0.31 — trading 40.9% above its estimated fair value. The current Beneish M-Score is -2.86. Arzan Financial Group for Financing and Investment KPSC's overall GF Score™ is 16/100 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 Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN), the current Beneish M-Score is -2.86 as of Aug. 25, 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 Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) Overvalued in 2026?

Based on GuruFocus' analysis, Arzan Financial Group for Financing and Investment KPSC stock appears to be overvalued. The current stock price of KWD0.31 is trading 40.9% above its estimated GF Value™ of KWD0.22. GuruFocus considers Arzan Financial Group for Financing and Investment KPSC to be Significantly Overvalued.

Key valuation signals for KUW:ARZAN:

  • Beneish M-Score: -2.86
  • GF Value™: KWD0.22 vs. price of KWD0.31 (40.9% above fair value)
  • GF Score™: 16/100 with 5 warning signs

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

Arzan Financial Group for Financing and Investment KPSC Business Description

Address Arzan Tower, Ahmed Al Jaber street, P.O.Box: 26442, Sharq, Safat, Kuwait City, KWT, 13125
Arzan Financial Group for Financing and Investment KPSC is a company engaged in the provision of consumer instalment credit facilities and investments. The Group has four operating segments: instalment credit, investments, financial brokerage and real estate. It offers credit facilities to purchase consumer products, brokerage, investment platforms, third-party portfolio management services, and margin trading. It generates the majority of the revenue from the Investments segment. The Group'ss activities, assets and liabilities are carried out and located in Kuwait, GCC, Middle East, USA and Europe.
16GF Score

Get the complete analysis for KUW:ARZAN

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

KWD0.31
Price
KWD0.22
GF Value