National Real Estate Co KSC (KUW:NRE) Beneish M-Score: -4.02 (As of Jul. 03, 2026)


KUW:NRE National Real Estate Co KSC KUW:NRE
19 GF Score
Price KWD0.12
GF Value KWD0.03
Valuation Significantly Overvalued
! 10 Warning Signs
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What is National Real Estate Co KSC Beneish M-Score?

National Real Estate Co KSC KUW:NRE -0.80% 19 Beneish M-Score is -4.02 as of Jul. 03, 2026. GuruFocus rates KUW:NRE with a GF Score™ of 19/100 and a GF Value™ of KWD0.03 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,680 Real Estate companies, National Real Estate Co KSC ranks better than 94.94% 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 -4.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KUW:NRE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.02   Med: -2.32   Max: -0.13
Current: -4.02

During the past 13 years, the highest Beneish M-Score of National Real Estate Co KSC was -0.13. The lowest was -4.02. And the median was -2.32.

National Real Estate Co KSC Beneish M-Score Historical Data

* Premium members only.

The historical data trend for National Real Estate Co KSC'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.

National Real Estate Co KSC Beneish M-Score Chart

National Real Estate Co KSC 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 -0.31 -2.69 -2.80 -2.39 -3.07

National Real Estate Co KSC 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 -1.81 -2.52 -3.09 -3.07 -4.02

National Real Estate Co KSC Beneish M-Score Competitor Comparison

For the Real Estate - Development subindustry, National Real Estate Co KSC'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.

National Real Estate Co KSC Beneish M-Score vs Real Estate Industry

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

* The bar in red indicates where National Real Estate Co KSC's Beneish M-Score falls into.


KUW:NRE
19GF Score
National Real Estate Co KSC KUW:NRE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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National Real Estate Co 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 National Real Estate Co 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 * 1.114+0.528 * 1.0049+0.404 * 0.9356+0.892 * 0.694+0.115 * 0.865
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1121+4.679 * -0.261949-0.327 * 1.2616
=-4.02

* 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 KWD7.99 Mil.
Revenue was 0.812 + 0.94 + 0.988 + 0.809 = KWD3.55 Mil.
Gross Profit was 0.6 + 0.655 + 0.722 + 0.554 = KWD2.53 Mil.
Total Current Assets was KWD57.14 Mil.
Total Assets was KWD471.02 Mil.
Property, Plant and Equipment(Net PPE) was KWD2.98 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.33 Mil.
Selling, General, & Admin. Expense(SGA) was KWD2.47 Mil.
Total Current Liabilities was KWD56.79 Mil.
Long-Term Debt & Capital Lease Obligation was KWD152.72 Mil.
Net Income was -53.842 + -27.203 + 20.107 + -66.492 = KWD-127.43 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was -1.244 + 1.378 + 4.309 + -8.49 = KWD-4.05 Mil.
 Total Receivables was KWD10.33 Mil.
Revenue was 0.801 + 2.072 + 1.071 + 1.17 = KWD5.11 Mil.
Gross Profit was 0.596 + 1.836 + 0.617 + 0.616 = KWD3.67 Mil.
Total Current Assets was KWD33.95 Mil.
Total Assets was KWD551.67 Mil.
Property, Plant and Equipment(Net PPE) was KWD3.33 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD0.32 Mil.
Selling, General, & Admin. Expense(SGA) was KWD3.19 Mil.
Total Current Liabilities was KWD53.06 Mil.
Long-Term Debt & Capital Lease Obligation was KWD141.43 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)
=(7.989 / 3.549) / (10.334 / 5.114)
=2.251057 / 2.020727
=1.114

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)
=(3.665 / 5.114) / (2.531 / 3.549)
=0.71666 / 0.713159
=1.0049

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 - (57.138 + 2.982) / 471.019) / (1 - (33.954 + 3.332) / 551.667)
=0.872362 / 0.932412
=0.9356

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
=3.549 / 5.114
=0.694

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))
=(0.318 / (0.318 + 3.332)) / (0.334 / (0.334 + 2.982))
=0.087123 / 0.100724
=0.865

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)
=(2.465 / 3.549) / (3.194 / 5.114)
=0.694562 / 0.62456
=1.1121

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)
=((152.716 + 56.785) / 471.019) / ((141.428 + 53.059) / 551.667)
=0.444782 / 0.352544
=1.2616

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
=(-127.43 - 0 - -4.047) / 471.019
=-0.261949

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 Real Estate Co KSC has a M-score of -4.02 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 -4.02 mean?
National Real Estate Co KSC (KUW:NRE) has a Beneish M-Score of -4.02 as of Jul. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on National Real Estate Co KSC and its competitors. According to the industry distribution chart, National Real Estate Co KSC ranks #85 out of 1680 companies in the Real Estate industry, placing it in the top 5.1%.
Is National Real Estate Co KSC's Beneish M-Score too high?
National Real Estate Co KSC's current Beneish M-Score is -4.02. Based on the distribution chart, National Real Estate Co KSC ranks #85 out of 1680 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, National Real Estate Co KSC has a GF Score™ of 19/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Real Estate Co KSC's Beneish M-Score compare to competitors?
According to the Real Estate industry distribution chart, National Real Estate Co KSC ranks #85 out of 1680 companies for Beneish M-Score. This places National Real Estate Co KSC in the top 5% 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 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 National Real Estate Co KSC and its competitors. National Real Estate Co KSC's current Beneish M-Score is -4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, National Real Estate Co KSC (KUW:NRE) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.03, compared to a current price of KWD0.12 — trading 313.3% above its estimated fair value. The current Beneish M-Score is -4.02. National Real Estate Co KSC's overall GF Score™ is 19/100 with 10 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 Real Estate Co KSC (KUW:NRE), the current Beneish M-Score is -4.02 as of Jul. 03, 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 Real Estate Co KSC (KUW:NRE) Overvalued in 2026?

Based on GuruFocus' analysis, National Real Estate Co KSC stock appears to be overvalued. The current stock price of KWD0.12 is trading 313.3% above its estimated GF Value™ of KWD0.03. GuruFocus considers National Real Estate Co KSC to be Significantly Overvalued.

Key valuation signals for KUW:NRE:

  • Beneish M-Score: -4.02
  • GF Value™: KWD0.03 vs. price of KWD0.12 (313.3% above fair value)
  • GF Score™: 19/100 with 10 warning signs

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

National Real Estate Co KSC Business Description

Address Al-Shuhada Street, P.O. Box 22644, 58th Floor, Al-Hamra Tower, Sharq, Safat, Kuwait, KWT, 13087
National Real Estate Co KSC (NREC) is a real estate investment and development company. The company is engaged in the purchase, development, and sale of land, management of real estate properties, real estate construction, and maintenance services. The company reports in two segments: Real Estate and others, which include development, trading, leasing, and management of real estate properties and other activities, and the Investments segment, which consists of investments in an associate, joint venture, and equity securities. The portfolio of company projects includes Residential, Malls, commercial, industrial, warehousing, and resorts. NREC has development projects in the United Arab Emirates, Egypt, Jordan, Kuwait, and Libya.
19GF Score

Get the complete analysis for KUW:NRE

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

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