National Bank of KuwaitK (KUW:NBK) Beneish M-Score: -2.55 (As of Jul. 20, 2026)

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KUW:NBK National Bank of Kuwait SAK KUW:NBK
46 GF Score
Price KWD0.81
GF Value KWD0.93
Valuation Modestly Undervalued
! 3 Warning Signs
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What is National Bank of KuwaitK Beneish M-Score?

National Bank of KuwaitK KUW:NBK +0.25% 46 Beneish M-Score is -2.55 as of Jul. 20, 2026. GuruFocus rates KUW:NBK with a GF Score™ of 46/100 and a GF Value™ of KWD0.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,394 Banks companies, National Bank of KuwaitK ranks better than 76.61% 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for National Bank of KuwaitK's Beneish M-Score or its related term are showing as below:

KUW:NBK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93   Med: -2.53   Max: -2.02
Current: -2.55

During the past 13 years, the highest Beneish M-Score of National Bank of KuwaitK was -2.02. The lowest was -2.93. And the median was -2.53.

KUW:NBK
46GF Score
National Bank of Kuwait SAK KUW:NBK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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National Bank of KuwaitK 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 National Bank of KuwaitK 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 * 1.0008+0.892 * 1.0523+0.115 * 0.9483
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0387+4.679 * -0.011234-0.327 * 1.1496
=-2.55

* 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 Mil.
Revenue was 331.157 + 334.274 + 337.613 + 320.702 = KWD1,324 Mil.
Gross Profit was 331.157 + 334.274 + 337.613 + 320.702 = KWD1,324 Mil.
Total Current Assets was KWD0 Mil.
Total Assets was KWD46,101 Mil.
Property, Plant and Equipment(Net PPE) was KWD544 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD54 Mil.
Selling, General, & Admin. Expense(SGA) was KWD183 Mil.
Total Current Liabilities was KWD0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD4,072 Mil.
Net Income was 135.452 + 108.291 + 152.096 + 181.178 = KWD577 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0 Mil.
Cash Flow from Operations was 28.799 + -820.766 + 714.238 + 1172.657 = KWD1,095 Mil.
 Total Receivables was KWD0 Mil.
Revenue was 311.151 + 324.824 + 318.631 + 303.406 = KWD1,258 Mil.
Gross Profit was 311.151 + 324.824 + 318.631 + 303.406 = KWD1,258 Mil.
Total Current Assets was KWD0 Mil.
Total Assets was KWD41,647 Mil.
Property, Plant and Equipment(Net PPE) was KWD524 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD49 Mil.
Selling, General, & Admin. Expense(SGA) was KWD167 Mil.
Total Current Liabilities was KWD0 Mil.
Long-Term Debt & Capital Lease Obligation was KWD3,200 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 / 1323.746) / (0 / 1258.012)
=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)
=(1258.012 / 1258.012) / (1323.746 / 1323.746)
=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 + 543.593) / 46101.158) / (1 - (0 + 523.905) / 41646.822)
=0.988209 / 0.98742
=1.0008

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
=1323.746 / 1258.012
=1.0523

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))
=(49.178 / (49.178 + 523.905)) / (54.087 / (54.087 + 543.593))
=0.085813 / 0.090495
=0.9483

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)
=(182.849 / 1323.746) / (167.29 / 1258.012)
=0.13813 / 0.13298
=1.0387

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)
=((4072.132 + 0) / 46101.158) / ((3199.919 + 0) / 41646.822)
=0.08833 / 0.076835
=1.1496

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
=(577.017 - 0 - 1094.928) / 46101.158
=-0.011234

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.

National Bank of KuwaitK has a M-score of -2.55 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 -2.55 mean?
National Bank of KuwaitK (KUW:NBK) has a Beneish M-Score of -2.55 as of Jul. 20, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on National Bank of KuwaitK and its competitors. According to the industry distribution chart, National Bank of KuwaitK ranks #326 out of 1394 companies in the Banks industry, placing it in the top 23.4%.
Is National Bank of KuwaitK's Beneish M-Score too high?
National Bank of KuwaitK's current Beneish M-Score is -2.55. Based on the distribution chart, National Bank of KuwaitK ranks #326 out of 1394 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, National Bank of KuwaitK has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does National Bank of KuwaitK's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, National Bank of KuwaitK ranks #326 out of 1394 companies for Beneish M-Score. This places National Bank of KuwaitK in the top 23% 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 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 National Bank of KuwaitK and its competitors. National Bank of KuwaitK's current Beneish M-Score is -2.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Bank of KuwaitK stock overvalued right now?
Based on GuruFocus' analysis, National Bank of KuwaitK (KUW:NBK) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.93, compared to a current price of KWD0.81 — trading 13.1% below its estimated fair value. The current Beneish M-Score is -2.55. National Bank of KuwaitK's overall GF Score™ is 46/100 with 3 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 National Bank of KuwaitK (KUW:NBK), the current Beneish M-Score is -2.55 as of Jul. 20, 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 National Bank of KuwaitK (KUW:NBK) Overvalued in 2026?

Based on GuruFocus' analysis, National Bank of KuwaitK stock appears to be undervalued. The current stock price of KWD0.81 is trading 13.1% below its estimated GF Value™ of KWD0.93. GuruFocus considers National Bank of KuwaitK to be Modestly Undervalued.

Key valuation signals for KUW:NBK:

  • Beneish M-Score: -2.55
  • GF Value™: KWD0.93 vs. price of KWD0.81 (13.1% below fair value)
  • GF Score™: 46/100 with 3 warning signs

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

National Bank of KuwaitK Business Description

Address Al Shuhada Street, P.O. Box 95, Safat, Kuwait, KWT, 13001
National Bank of Kuwait SAK is a financial institution. The company's operating segment includes Consumer Banking, Corporate Banking, NBK Wealth, Islamic Banking, Group Centre, and International Banking. The company generates maximum revenue from the International Banking segment. The International Banking segment provides diversified products and services including lending, deposits, trade finance, etc. to corporate and individual customers. Geographically, it derives a majority of its revenue from Kuwait and also has a presence in the Middle East and North Africa; Europe and UK, and Other Countries.
46GF Score

Get the complete analysis for KUW:NBK

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

KWD0.81
Price
KWD0.93
GF Value