Boubyan Bank KSC (KUW:BOUBYAN) Beneish M-Score: -2.42 (As of Jul. 13, 2026)


KUW:BOUBYAN Boubyan Bank KSC KUW:BOUBYAN
46 GF Score
Price KWD0.63
GF Value KWD0.67
Valuation Fairly Valued
! 8 Warning Signs
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What is Boubyan Bank KSC Beneish M-Score?

Boubyan Bank KSC KUW:BOUBYAN -0.16% 46 Beneish M-Score is -2.42 as of Jul. 13, 2026. GuruFocus rates KUW:BOUBYAN with a GF Score™ of 46/100 and a GF Value™ of KWD0.67 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,399 Banks companies, Boubyan Bank KSC ranks better than 54.11% 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 Boubyan Bank KSC's Beneish M-Score or its related term are showing as below:

KUW:BOUBYAN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.63   Med: -2.43   Max: -2.19
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Boubyan Bank KSC was -2.19. The lowest was -2.63. And the median was -2.43.

KUW:BOUBYAN
46GF Score
Boubyan Bank KSC KUW:BOUBYAN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Boubyan Bank KSC 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 Boubyan Bank KSC 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 * 0.9998+0.892 * 1.0812+0.115 * 0.9648
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0898+4.679 * 0.02479-0.327 * 1.3353
=-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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was KWD0.0 Mil.
Revenue was 67.816 + 71.888 + 68.188 + 62.747 = KWD270.6 Mil.
Gross Profit was 67.816 + 71.888 + 68.188 + 62.747 = KWD270.6 Mil.
Total Current Assets was KWD0.0 Mil.
Total Assets was KWD10,358.3 Mil.
Property, Plant and Equipment(Net PPE) was KWD187.7 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD19.6 Mil.
Selling, General, & Admin. Expense(SGA) was KWD44.9 Mil.
Total Current Liabilities was KWD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD522.5 Mil.
Net Income was 26.403 + 22.835 + 25.404 + 25.82 = KWD100.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.0 Mil.
Cash Flow from Operations was 49.975 + -187.763 + 157.07 + -175.607 = KWD-156.3 Mil.
 Total Receivables was KWD0.0 Mil.
Revenue was 65.212 + 64.072 + 61.465 + 59.569 = KWD250.3 Mil.
Gross Profit was 65.212 + 64.072 + 61.465 + 59.569 = KWD250.3 Mil.
Total Current Assets was KWD0.0 Mil.
Total Assets was KWD9,720.7 Mil.
Property, Plant and Equipment(Net PPE) was KWD174.2 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD17.5 Mil.
Selling, General, & Admin. Expense(SGA) was KWD38.1 Mil.
Total Current Liabilities was KWD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD367.2 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 / 270.639) / (0 / 250.318)
=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)
=(250.318 / 250.318) / (270.639 / 270.639)
=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 + 187.695) / 10358.324) / (1 - (0 + 174.151) / 9720.684)
=0.98188 / 0.982084
=0.9998

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
=270.639 / 250.318
=1.0812

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))
=(17.512 / (17.512 + 174.151)) / (19.634 / (19.634 + 187.695))
=0.091369 / 0.0947
=0.9648

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)
=(44.876 / 270.639) / (38.085 / 250.318)
=0.165815 / 0.152146
=1.0898

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)
=((522.489 + 0) / 10358.324) / ((367.205 + 0) / 9720.684)
=0.050441 / 0.037776
=1.3353

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
=(100.462 - 0 - -156.325) / 10358.324
=0.02479

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.

Boubyan Bank KSC 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?
Boubyan Bank KSC (KUW:BOUBYAN) has a Beneish M-Score of -2.42 as of Jul. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Boubyan Bank KSC and its competitors. According to the industry distribution chart, Boubyan Bank KSC ranks #642 out of 1399 companies in the Banks industry, placing it in the top 45.9%.
Is Boubyan Bank KSC's Beneish M-Score too high?
Boubyan Bank KSC's current Beneish M-Score is -2.42. Based on the distribution chart, Boubyan Bank KSC ranks #642 out of 1399 companies in the Banks industry, which is above the industry midpoint. Overall, Boubyan Bank KSC has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Boubyan Bank KSC's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, Boubyan Bank KSC ranks #642 out of 1399 companies for Beneish M-Score. This puts Boubyan Bank KSC 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 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 Boubyan Bank KSC and its competitors. Boubyan Bank KSC'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 Boubyan Bank KSC stock overvalued right now?
Based on GuruFocus' analysis, Boubyan Bank KSC (KUW:BOUBYAN) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.67, compared to a current price of KWD0.63 — trading 5.5% below its estimated fair value. The current Beneish M-Score is -2.42. Boubyan Bank KSC's overall GF Score™ is 46/100 with 8 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 Boubyan Bank KSC (KUW:BOUBYAN), the current Beneish M-Score is -2.42 as of Jul. 13, 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 Boubyan Bank KSC (KUW:BOUBYAN) Overvalued in 2026?

Based on GuruFocus' analysis, Boubyan Bank KSC stock appears to be undervalued. The current stock price of KWD0.63 is trading 5.5% below its estimated GF Value™ of KWD0.67. GuruFocus considers Boubyan Bank KSC to be Fairly Valued.

Key valuation signals for KUW:BOUBYAN:

  • Beneish M-Score: -2.42
  • GF Value™: KWD0.67 vs. price of KWD0.63 (5.5% below fair value)
  • GF Score™: 46/100 with 8 warning signs

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

Boubyan Bank KSC Business Description

Address Al-Qibla - Abo Bakr Al-Seddiq Street, P.O. Box 25507, Al-Hamad Towers, 3rd Building, Beside Al-Khrafi Tower, Safat, KWT, 13116
Boubyan Bank KSC is a Kuwait based Islamic banking corporation. The company's operating segment includes Consumer banking; Corporate banking; Investment banking and international operations; Treasury; and Group centre. It generates maximum revenue from the Consumer banking segment. The Consumer Banking segment provides products and services to individuals and institutional customers which includes consumer finance, credit cards, deposits, and other branch-related services. Geographically, the company has a presence in the Middle East and North Africa, North America; Europe and UK, and Asia.
46GF Score

Get the complete analysis for KUW:BOUBYAN

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

KWD0.63
Price
KWD0.67
GF Value