Admiral Group (LSE:ADM) Beneish M-Score: -2.21 (As of Jun. 24, 2026)


LSE:ADM Admiral Group PLC LSE:ADM
76 GF Score
Price £33.78
GF Value £37.16
Valuation Fairly Valued
! 3 Warning Signs
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What is Admiral Group Beneish M-Score?

Admiral Group LSE:ADM +1.99% 76 Beneish M-Score is -2.21 as of Jun. 24, 2026. GuruFocus rates LSE:ADM with a GF Score™ of 76/100 and a GF Value™ of £37.16 (Fairly Valued). The stock has 3 warning signs investors should review. Among 399 Insurance companies, Admiral Group ranks worse than 76.44% 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 -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ADM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79   Med: -2.57   Max: -2.21
Current: -2.21

During the past 13 years, the highest Beneish M-Score of Admiral Group was -2.21. The lowest was -2.79. And the median was -2.57.

LSE:ADM
76GF Score
Admiral Group PLC LSE:ADM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Admiral Group 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 Admiral Group 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 * 1.1233+0.528 * 1+0.404 * 1.0022+0.892 * 1.0824+0.115 * 0.9942
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0042+4.679 * 0.030611-0.327 * 1.1914
=-2.21

* 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 £296 Mil.
Revenue was £5,059 Mil.
Gross Profit was £5,059 Mil.
Total Current Assets was £0 Mil.
Total Assets was £9,023 Mil.
Property, Plant and Equipment(Net PPE) was £80 Mil.
Depreciation, Depletion and Amortization(DDA) was £79 Mil.
Selling, General, & Admin. Expense(SGA) was £773 Mil.
Total Current Liabilities was £0 Mil.
Long-Term Debt & Capital Lease Obligation was £1,886 Mil.
Net Income was £743 Mil.
Gross Profit was £30 Mil.
Cash Flow from Operations was £437 Mil.
 Total Receivables was £243 Mil.
Revenue was £4,674 Mil.
Gross Profit was £4,674 Mil.
Total Current Assets was £0 Mil.
Total Assets was £7,944 Mil.
Property, Plant and Equipment(Net PPE) was £88 Mil.
Depreciation, Depletion and Amortization(DDA) was £86 Mil.
Selling, General, & Admin. Expense(SGA) was £711 Mil.
Total Current Liabilities was £0 Mil.
Long-Term Debt & Capital Lease Obligation was £1,394 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)
=(295.8 / 5058.8) / (243.3 / 4673.8)
=0.058472 / 0.052056
=1.1233

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)
=(4673.8 / 4673.8) / (5058.8 / 5058.8)
=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 + 80.2) / 9022.8) / (1 - (0 + 87.8) / 7944.2)
=0.991111 / 0.988948
=1.0022

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
=5058.8 / 4673.8
=1.0824

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))
=(85.5 / (85.5 + 87.8)) / (79 / (79 + 80.2))
=0.493364 / 0.496231
=0.9942

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)
=(772.7 / 5058.8) / (710.9 / 4673.8)
=0.152744 / 0.152103
=1.0042

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)
=((1885.8 + 0) / 9022.8) / ((1393.6 + 0) / 7944.2)
=0.209004 / 0.175424
=1.1914

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
=(742.6 - 29.9 - 436.5) / 9022.8
=0.030611

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.

Admiral Group has a M-score of -2.21 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 -2.21 mean?
Admiral Group (LSE:ADM) has a Beneish M-Score of -2.21 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Admiral Group and its competitors. According to the industry distribution chart, Admiral Group ranks #305 out of 399 companies in the Insurance industry, placing it in the top 76.4%.
Is Admiral Group's Beneish M-Score too high?
Admiral Group's current Beneish M-Score is -2.21. Based on the distribution chart, Admiral Group ranks #305 out of 399 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Admiral Group has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Admiral Group's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Admiral Group ranks #305 out of 399 companies for Beneish M-Score. This places Admiral Group 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 Admiral Group and its competitors. Admiral Group's current Beneish M-Score is -2.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Admiral Group stock overvalued right now?
Based on GuruFocus' analysis, Admiral Group (LSE:ADM) is currently considered Fairly Valued. The stock's GF Value™ is £37.16, compared to a current price of £33.78 — trading 9.1% below its estimated fair value. The current Beneish M-Score is -2.21. Admiral Group's overall GF Score™ is 76/100 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 Admiral Group (LSE:ADM), the current Beneish M-Score is -2.21 as of Jun. 24, 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 Admiral Group (LSE:ADM) Overvalued in 2026?

Based on GuruFocus' analysis, Admiral Group stock appears to be undervalued. The current stock price of £33.78 is trading 9.1% below its estimated GF Value™ of £37.16. GuruFocus considers Admiral Group to be Fairly Valued.

Key valuation signals for LSE:ADM:

  • Beneish M-Score: -2.21
  • GF Value™: £37.16 vs. price of £33.78 (9.1% below fair value)
  • GF Score™: 76/100 with 3 warning signs

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

Admiral Group Business Description

Address David Street, Ty Admiral, Cardiff, GBR, CF10 2EH
Admiral is a personal lines insurer that operates predominantly in the United Kingdom. The business is primarily a motor insurer with UK and European auto insurance accounting for the majority of gross premium. The company also has a nascent but growing UK home insurance division. The company was established in 1993 to sell nonstandard risk motor insurance. These nonstandard policyholders included younger drivers, female drivers, drivers wanting to pay by credit card, and drivers based in London. Over the years the company has expanded its nonstandard risks perimeter.
76GF Score

Get the complete analysis for LSE:ADM

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

£33.78
Price
£37.16
GF Value