Avacta Group (LSE:AVCT) Beneish M-Score: 4.14 (As of Jun. 24, 2026)


LSE:AVCT Avacta Group PLC LSE:AVCT
28 GF Score
Price £0.73
GF Value £0.49
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Avacta Group Beneish M-Score?

Avacta Group LSE:AVCT +0.42% 28 Beneish M-Score is 4.14 as of Jun. 24, 2026. GuruFocus rates LSE:AVCT with a GF Score™ of 28/100 and a GF Value™ of £0.49 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 831 Biotechnology companies, Avacta Group ranks worse than 91.58% 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.

Warning Sign:

Beneish M-Score 4.14 higher than -1.78, which implies that the company might have manipulated its financial results.

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

LSE:AVCT' s Beneish M-Score Range Over the Past 10 Years
Min: -12.47   Med: -2.5   Max: 4.14
Current: 4.14

During the past 13 years, the highest Beneish M-Score of Avacta Group was 4.14. The lowest was -12.47. And the median was -2.50.

Avacta Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Avacta 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.

Avacta Group Beneish M-Score Chart

Avacta Group Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.18 -3.07 -1.37 -12.47 4.14

Avacta Group Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 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 -1.37 0.00 -12.47 0.00 4.14

LSE:AVCT vs VRTX, REGN, ALNY: Beneish M-Score Comparison

For the Biotechnology subindustry, Avacta 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.

Avacta Group Beneish M-Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Avacta Group's Beneish M-Score distribution charts can be found below:

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


LSE:AVCT
28GF Score
Avacta Group PLC LSE:AVCT
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Avacta 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 Avacta 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 * 10.4161+0.528 * 1+0.404 * 1.4433+0.892 * 1+0.115 * 0.7606
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7044+4.679 * -0.47119-0.327 * 1.1277
=4.14

* 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 £2.98 Mil.
Revenue was £0.11 Mil.
Gross Profit was £0.11 Mil.
Total Current Assets was £23.20 Mil.
Total Assets was £29.42 Mil.
Property, Plant and Equipment(Net PPE) was £1.57 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.28 Mil.
Selling, General, & Admin. Expense(SGA) was £8.49 Mil.
Total Current Liabilities was £26.16 Mil.
Long-Term Debt & Capital Lease Obligation was £0.50 Mil.
Net Income was £-38.61 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-24.75 Mil.
 Total Receivables was £0.29 Mil.
Revenue was £0.11 Mil.
Gross Profit was £0.11 Mil.
Total Current Assets was £40.20 Mil.
Total Assets was £48.27 Mil.
Property, Plant and Equipment(Net PPE) was £2.79 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.44 Mil.
Selling, General, & Admin. Expense(SGA) was £12.05 Mil.
Total Current Liabilities was £37.30 Mil.
Long-Term Debt & Capital Lease Obligation was £1.48 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)
=(2.979 / 0.113) / (0.286 / 0.113)
=26.362832 / 2.530973
=10.4161

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)
=(0.113 / 0.113) / (0.113 / 0.113)
=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 - (23.195 + 1.57) / 29.417) / (1 - (40.196 + 2.785) / 48.27)
=0.15814 / 0.109571
=1.4433

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
=0.113 / 0.113
=1

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))
=(1.444 / (1.444 + 2.785)) / (1.279 / (1.279 + 1.57))
=0.341452 / 0.448929
=0.7606

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)
=(8.485 / 0.113) / (12.046 / 0.113)
=75.088496 / 106.60177
=0.7044

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)
=((0.496 + 26.157) / 29.417) / ((1.482 + 37.299) / 48.27)
=0.906041 / 0.803418
=1.1277

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
=(-38.612 - 0 - -24.751) / 29.417
=-0.47119

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.

Avacta Group has a M-score of 4.14 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 4.14 mean?
Avacta Group (LSE:AVCT) has a Beneish M-Score of 4.14 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Avacta Group and its competitors. According to the industry distribution chart, Avacta Group ranks #761 out of 831 companies in the Biotechnology industry, placing it in the top 91.6%.
Is Avacta Group's Beneish M-Score too high?
Avacta Group's current Beneish M-Score is 4.14. Based on the distribution chart, Avacta Group ranks #761 out of 831 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Avacta Group has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avacta Group's Beneish M-Score compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Avacta Group ranks #761 out of 831 companies for Beneish M-Score. This places Avacta 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 Biotechnology company?
A good Beneish M-Score depends on the Biotechnology 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 Avacta Group and its competitors. Avacta Group's current Beneish M-Score is 4.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avacta Group stock overvalued right now?
Based on GuruFocus' analysis, Avacta Group (LSE:AVCT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.49, compared to a current price of £0.73 — trading 48% above its estimated fair value. The current Beneish M-Score is 4.14. Avacta Group's overall GF Score™ is 28/100 with 8 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 Avacta Group (LSE:AVCT), the current Beneish M-Score is 4.14 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 Avacta Group (LSE:AVCT) Overvalued in 2026?

Based on GuruFocus' analysis, Avacta Group stock appears to be overvalued. The current stock price of £0.73 is trading 48% above its estimated GF Value™ of £0.49. GuruFocus considers Avacta Group to be Significantly Overvalued.

Key valuation signals for LSE:AVCT:

  • Beneish M-Score: 4.14
  • GF Value™: £0.49 vs. price of £0.73 (48% above fair value)
  • GF Score™: 28/100 with 8 warning signs

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

Avacta Group Business Description

Other Exchanges AVCTF:USARTQ1:Germany
Address 58 Wood Lane, White City Imperial College Campus, Scale Space, London, GBR, W12 7RZ
Avacta Group PLC is a clinical-stage life sciences company expanding the reach of potent cancer therapies with the pre-CISION platform. pre-CISION is a proprietary warhead delivery system based on a tumor-specific protease (fibroblast activation protein or FAP) that is designed to concentrate potent warheads in the tumor microenvironment while sparing normal tissues. The company's pipeline consists of pre-CISION peptide drug conjugates (PDC) or Affimer drug conjugates (AffDC) that leverage the tumor-specific release mechanism, providing benefits over traditional antibody drug conjugates. The firm has one reportable segment, Therapeutics, which is engaged in the development of novel cancer therapies harnessing its proprietary technology. Geographically, it derives revenue from South Korea.
28GF Score

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

£0.73
Price
£0.49
GF Value