Warba Bank (K.S.C.) (KUW:WARBABANK) Beneish M-Score: -1.61 (As of Aug. 05, 2026)

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KUW:WARBABANK Warba Bank (K.S.C.) KUW:WARBABANK
26 GF Score
Price KWD0.28
GF Value KWD0.18
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Warba Bank (K.S.C.) Beneish M-Score?

Warba Bank (K.S.C.) KUW:WARBABANK -1.07% 26 Beneish M-Score is -1.61 as of Aug. 05, 2026. GuruFocus rates KUW:WARBABANK with a GF Score™ of 26/100 and a GF Value™ of KWD0.18 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,393 Banks companies, Warba Bank (K.S.C.) ranks worse than 95.69% 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.

Warning Sign:

Beneish M-Score -1.61 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Warba Bank (K.S.C.)'s Beneish M-Score or its related term are showing as below:

KUW:WARBABANK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.36   Max: -1.49
Current: -1.61

During the past 13 years, the highest Beneish M-Score of Warba Bank (K.S.C.) was -1.49. The lowest was -2.88. And the median was -2.36.

KUW:WARBABANK
26GF Score
Warba Bank (K.S.C.) KUW:WARBABANK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Warba Bank (K.S.C.) 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 Warba Bank (K.S.C.) 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 * 0.9928+0.892 * 1.1349+0.115 * 3.2929
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9448+4.679 * 0.063915-0.327 * 0.4553
=-1.61

* 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 KWD0.00 Mil.
Revenue was 21.437 + 24.908 + 29.909 + 23.181 = KWD99.44 Mil.
Gross Profit was 21.437 + 24.908 + 29.909 + 23.181 = KWD99.44 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD6,129.77 Mil.
Property, Plant and Equipment(Net PPE) was KWD63.59 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD6.25 Mil.
Selling, General, & Admin. Expense(SGA) was KWD10.74 Mil.
Total Current Liabilities was KWD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD155.32 Mil.
Net Income was 6.276 + 11.117 + 17.783 + 15.208 = KWD50.38 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = KWD0.00 Mil.
Cash Flow from Operations was 58.131 + -41.686 + -142.42 + -215.427 = KWD-341.40 Mil.
 Total Receivables was KWD0.00 Mil.
Revenue was 17.88 + 33.69 + 19.216 + 16.832 = KWD87.62 Mil.
Gross Profit was 17.88 + 33.69 + 19.216 + 16.832 = KWD87.62 Mil.
Total Current Assets was KWD0.00 Mil.
Total Assets was KWD5,539.98 Mil.
Property, Plant and Equipment(Net PPE) was KWD17.74 Mil.
Depreciation, Depletion and Amortization(DDA) was KWD7.41 Mil.
Selling, General, & Admin. Expense(SGA) was KWD10.02 Mil.
Total Current Liabilities was KWD0.00 Mil.
Long-Term Debt & Capital Lease Obligation was KWD308.34 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 / 99.435) / (0 / 87.618)
=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)
=(87.618 / 87.618) / (99.435 / 99.435)
=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 + 63.586) / 6129.766) / (1 - (0 + 17.743) / 5539.981)
=0.989627 / 0.996797
=0.9928

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
=99.435 / 87.618
=1.1349

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))
=(7.409 / (7.409 + 17.743)) / (6.247 / (6.247 + 63.586))
=0.294569 / 0.089456
=3.2929

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)
=(10.741 / 99.435) / (10.017 / 87.618)
=0.10802 / 0.114326
=0.9448

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)
=((155.315 + 0) / 6129.766) / ((308.34 + 0) / 5539.981)
=0.025338 / 0.055657
=0.4553

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
=(50.384 - 0 - -341.402) / 6129.766
=0.063915

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.

Warba Bank (K.S.C.) has a M-score of -1.61 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.61 mean?
Warba Bank (K.S.C.) (KUW:WARBABANK) has a Beneish M-Score of -1.61 as of Aug. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Warba Bank (K.S.C.) and its competitors. According to the industry distribution chart, Warba Bank (K.S.C.) ranks #1333 out of 1393 companies in the Banks industry, placing it in the top 95.7%.
Is Warba Bank (K.S.C.)'s Beneish M-Score too high?
Warba Bank (K.S.C.)'s current Beneish M-Score is -1.61. Based on the distribution chart, Warba Bank (K.S.C.) ranks #1333 out of 1393 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Warba Bank (K.S.C.) has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Warba Bank (K.S.C.)'s Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Warba Bank (K.S.C.) ranks #1333 out of 1393 companies for Beneish M-Score. This places Warba Bank (K.S.C.) 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 Warba Bank (K.S.C.) and its competitors. Warba Bank (K.S.C.)'s current Beneish M-Score is -1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Warba Bank (K.S.C.) stock overvalued right now?
Based on GuruFocus' analysis, Warba Bank (K.S.C.) (KUW:WARBABANK) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.18, compared to a current price of KWD0.28 — trading 54.4% above its estimated fair value. The current Beneish M-Score is -1.61. Warba Bank (K.S.C.)'s overall GF Score™ is 26/100 with 6 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 Warba Bank (K.S.C.) (KUW:WARBABANK), the current Beneish M-Score is -1.61 as of Aug. 05, 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 Warba Bank (K.S.C.) (KUW:WARBABANK) Overvalued in 2026?

Based on GuruFocus' analysis, Warba Bank (K.S.C.) stock appears to be overvalued. The current stock price of KWD0.28 is trading 54.4% above its estimated GF Value™ of KWD0.18. GuruFocus considers Warba Bank (K.S.C.) to be Significantly Overvalued.

Key valuation signals for KUW:WARBABANK:

  • Beneish M-Score: -1.61
  • GF Value™: KWD0.18 vs. price of KWD0.28 (54.4% above fair value)
  • GF Score™: 26/100 with 6 warning signs

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

Warba Bank (K.S.C.) Business Description

Address Omar Ibn Al Khattab Street, Parcel 6, Arraya Tower, M1, P.O. Box 1220, Sharq, Block 7, Safat, KWT, 13013
Warba Bank (K.S.C.) is a Kuwait-based banking corporation involved in corporate, retail, and investment banking activities in accordance with the principles of Islamic Sharia. It has five operating segments; Corporate offers a range of banking services and investment products to corporate customers, in addition to providing commodity and real estate Murabaha finance and Ijara facilities. Retail offers diversified products and services to individual customers, Treasury includes Bank's funding operations management, local and international Murabaha, and other Islamic financings with banks and financial institutions, Investment includes investment in direct equity, real estate investment, other investments, and asset management, and Other includes cost center assets and expenses.
26GF Score

Get the complete analysis for KUW:WARBABANK

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

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