Arcontech Group (LSE:ARC) Beneish M-Score: -2.13 (As of Jun. 24, 2026)


LSE:ARC Arcontech Group PLC LSE:ARC
50 GF Score
Price £0.78
GF Value £0.87
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Arcontech Group Beneish M-Score?

Arcontech Group LSE:ARC 50 Beneish M-Score is -2.13 as of Jun. 24, 2026. GuruFocus rates LSE:ARC with a GF Score™ of 50/100 and a GF Value™ of £0.87 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,633 Software companies, Arcontech Group ranks worse than 71.97% 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ARC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Med: -2.36   Max: -1.02
Current: -2.13

During the past 13 years, the highest Beneish M-Score of Arcontech Group was -1.02. The lowest was -3.36. And the median was -2.36.

Arcontech Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Arcontech Group'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.

Arcontech Group Beneish M-Score Chart

Arcontech Group Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.02 -3.03 -2.04 -2.06 -2.13

Arcontech Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 0.00 -2.06 0.00 -2.13 0.00

LSE:ARC vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Arcontech Group'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.

Arcontech Group Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Arcontech Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arcontech Group's Beneish M-Score falls into.


LSE:ARC
50GF Score
Arcontech Group PLC LSE:ARC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arcontech 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 Arcontech 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 * 1.1524+0.528 * 1+0.404 * 0.9663+0.892 * 1.0677+0.115 * 0.9184
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0683+4.679 * 0.031143-0.327 * 0.8861
=-2.13

* 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 (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was £0.83 Mil.
Revenue was £3.11 Mil.
Gross Profit was £3.11 Mil.
Total Current Assets was £8.23 Mil.
Total Assets was £10.82 Mil.
Property, Plant and Equipment(Net PPE) was £0.40 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.12 Mil.
Selling, General, & Admin. Expense(SGA) was £2.33 Mil.
Total Current Liabilities was £1.71 Mil.
Long-Term Debt & Capital Lease Obligation was £0.31 Mil.
Net Income was £0.94 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £0.61 Mil.
 Total Receivables was £0.68 Mil.
Revenue was £2.91 Mil.
Gross Profit was £2.91 Mil.
Total Current Assets was £7.84 Mil.
Total Assets was £10.56 Mil.
Property, Plant and Equipment(Net PPE) was £0.51 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.14 Mil.
Selling, General, & Admin. Expense(SGA) was £2.04 Mil.
Total Current Liabilities was £1.80 Mil.
Long-Term Debt & Capital Lease Obligation was £0.43 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)
=(0.833 / 3.107) / (0.677 / 2.91)
=0.268104 / 0.232646
=1.1524

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)
=(2.91 / 2.91) / (3.107 / 3.107)
=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 - (8.229 + 0.399) / 10.821) / (1 - (7.837 + 0.509) / 10.561)
=0.202661 / 0.209734
=0.9663

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
=3.107 / 2.91
=1.0677

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))
=(0.135 / (0.135 + 0.509)) / (0.118 / (0.118 + 0.399))
=0.209627 / 0.22824
=0.9184

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)
=(2.328 / 3.107) / (2.041 / 2.91)
=0.749276 / 0.701375
=1.0683

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)
=((0.308 + 1.712) / 10.821) / ((0.427 + 1.798) / 10.561)
=0.186674 / 0.210681
=0.8861

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
=(0.943 - 0 - 0.606) / 10.821
=0.031143

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.

Arcontech Group has a M-score of -2.13 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 -2.13 mean?
Arcontech Group (LSE:ARC) has a Beneish M-Score of -2.13 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arcontech Group and its competitors. According to the industry distribution chart, Arcontech Group ranks #1895 out of 2633 companies in the Software industry, placing it in the top 72%.
Is Arcontech Group's Beneish M-Score too high?
Arcontech Group's current Beneish M-Score is -2.13. Based on the distribution chart, Arcontech Group ranks #1895 out of 2633 companies in the Software industry, which is below the industry midpoint. Overall, Arcontech Group has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcontech Group's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Arcontech Group ranks #1895 out of 2633 companies for Beneish M-Score. This places Arcontech 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 a Software company?
A good Beneish M-Score depends on the Software 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 Arcontech Group and its competitors. Arcontech Group's current Beneish M-Score is -2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcontech Group stock overvalued right now?
Based on GuruFocus' analysis, Arcontech Group (LSE:ARC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.87, compared to a current price of £0.78 — trading 10.9% below its estimated fair value. The current Beneish M-Score is -2.13. Arcontech Group's overall GF Score™ is 50/100 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 Arcontech Group (LSE:ARC), the current Beneish M-Score is -2.13 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 Arcontech Group (LSE:ARC) Overvalued in 2026?

Based on GuruFocus' analysis, Arcontech Group stock appears to be undervalued. The current stock price of £0.78 is trading 10.9% below its estimated GF Value™ of £0.87. GuruFocus considers Arcontech Group to be Modestly Undervalued.

Key valuation signals for LSE:ARC:

  • Beneish M-Score: -2.13
  • GF Value™: £0.87 vs. price of £0.78 (10.9% below fair value)
  • GF Score™: 50/100 with 1 warning sign

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

Arcontech Group Business Description

Other Exchanges KTSA:Germany
Address 11-21 Paul Street, 1st Floor, London, GBR, EC2A 4JU
Arcontech Group PLC is a real-time software company. The company develops and sells products and bespoke systems for collection, processing, distribution and presentation and time-sensitive financial markets data and provides computer consultancy services. Its products include Cityvision, Excelerator, Cityvison Cache, Cityvision Relay, and others. The company has a software development and license fees segment. The company operates in UK, Europe (excluding UK), Africa, North America, Australia, and Asia Pacific.
50GF Score

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

£0.78
Price
£0.87
GF Value