Burgan BankK (KUW:BURG) Beneish M-Score: -2.24 (As of Jul. 07, 2026)


KUW:BURG Burgan Bank SAK KUW:BURG
29 GF Score
Price KWD0.19
GF Value KWD0.21
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Burgan BankK Beneish M-Score?

Burgan BankK KUW:BURG 29 Beneish M-Score is -2.24 as of Jul. 07, 2026. GuruFocus rates KUW:BURG with a GF Score™ of 29/100 and a GF Value™ of KWD0.21 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,398 Banks companies, Burgan BankK ranks worse than 76.25% 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 -2.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KUW:BURG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79   Med: -2.46   Max: -2.24
Current: -2.24

During the past 13 years, the highest Beneish M-Score of Burgan BankK was -2.24. The lowest was -2.79. And the median was -2.46.

KUW:BURG
29GF Score
Burgan Bank SAK KUW:BURG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Burgan BankK 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 Burgan BankK 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 * 1.0001+0.892 * 1.172+0.115 * 0.8528
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.039463-0.327 * 1.2504
=-2.24

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was KWD0.0 Mil.
Revenue was KWD268.6 Mil.
Gross Profit was KWD268.6 Mil.
Total Current Assets was KWD0.0 Mil.
Total Assets was KWD9,098.8 Mil.
Property, Plant and Equipment(Net PPE) was KWD220.6 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD18.2 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.0 Mil.
Total Current Liabilities was KWD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD557.2 Mil.
Net Income was KWD46.5 Mil.
Gross Profit was KWD0.0 Mil.
Cash Flow from Operations was KWD-312.5 Mil.
 Total Receivables was KWD0.0 Mil.
Revenue was KWD229.2 Mil.
Gross Profit was KWD229.2 Mil.
Total Current Assets was KWD0.0 Mil.
Total Assets was KWD8,158.5 Mil.
Property, Plant and Equipment(Net PPE) was KWD198.7 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD13.8 Mil.
Selling, General, & Admin. Expense(SGA) was KWD0.0 Mil.
Total Current Liabilities was KWD0.0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD399.5 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 / 268.619) / (0 / 229.199)
=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)
=(229.199 / 229.199) / (268.619 / 268.619)
=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 + 220.56) / 9098.815) / (1 - (0 + 198.706) / 8158.486)
=0.975759 / 0.975644
=1.0001

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
=268.619 / 229.199
=1.172

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))
=(13.828 / (13.828 + 198.706)) / (18.216 / (18.216 + 220.56))
=0.065063 / 0.076289
=0.8528

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)
=(0 / 268.619) / (0 / 229.199)
=0 / 0
=1

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)
=((557.183 + 0) / 9098.815) / ((399.541 + 0) / 8158.486)
=0.061237 / 0.048972
=1.2504

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
=(46.534 - 0 - -312.531) / 9098.815
=0.039463

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.

Burgan BankK has a M-score of -2.24 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 -2.24 mean?
Burgan BankK (KUW:BURG) has a Beneish M-Score of -2.24 as of Jul. 07, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Burgan BankK and its competitors. According to the industry distribution chart, Burgan BankK ranks #1066 out of 1398 companies in the Banks industry, placing it in the top 76.3%.
Is Burgan BankK's Beneish M-Score too high?
Burgan BankK's current Beneish M-Score is -2.24. Based on the distribution chart, Burgan BankK ranks #1066 out of 1398 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Burgan BankK has a GF Score™ of 29/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Burgan BankK's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Burgan BankK ranks #1066 out of 1398 companies for Beneish M-Score. This places Burgan BankK 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 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 Burgan BankK and its competitors. Burgan BankK's current Beneish M-Score is -2.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Burgan BankK stock overvalued right now?
Based on GuruFocus' analysis, Burgan BankK (KUW:BURG) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.21, compared to a current price of KWD0.19 — trading 11.4% below its estimated fair value. The current Beneish M-Score is -2.24. Burgan BankK's overall GF Score™ is 29/100 with 1 warning sign 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 Burgan BankK (KUW:BURG), the current Beneish M-Score is -2.24 as of Jul. 07, 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 Burgan BankK (KUW:BURG) Overvalued in 2026?

Based on GuruFocus' analysis, Burgan BankK stock appears to be undervalued. The current stock price of KWD0.19 is trading 11.4% below its estimated GF Value™ of KWD0.21. GuruFocus considers Burgan BankK to be Modestly Undervalued.

Key valuation signals for KUW:BURG:

  • Beneish M-Score: -2.24
  • GF Value™: KWD0.21 vs. price of KWD0.19 (11.4% below fair value)
  • GF Score™: 29/100 with 1 warning sign

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

Burgan BankK Business Description

Address Abdulla Al-Ahmad Street, Block 1, P.O. Box 5389, Building No. 22, Al Sharq, Safat, Kuwait, KWT, 12170
Burgan Bank SAK is a Kuwait-based banking entity. Domestically, the company operates in the following business segments: Corporate and Consumer banking, Treasury, FI and Investment banking, and Central Office. In addition, all of its operations outside Kuwait are classified as International. A majority of its revenue is generated from the Corporate and Consumer banking segment, which provides comprehensive products and services to corporate and individual customers, including lending, deposits, trade services, foreign exchange, advisory services, credit and debit cards, and others. Geographically, the company generates maximum revenue from its business in Kuwait, and also has its presence Internationally.
29GF Score

Get the complete analysis for KUW:BURG

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

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