Breedon Group (LSE:BREE) Beneish M-Score: -2.78 (As of Jun. 25, 2026)


LSE:BREE Breedon Group PLC LSE:BREE
84 GF Score
Price £3.03
GF Value £4.29
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Breedon Group Beneish M-Score?

Breedon Group LSE:BREE +1.88% 84 Beneish M-Score is -2.78 as of Jun. 25, 2026. GuruFocus rates LSE:BREE with a GF Score™ of 84/100 and a GF Value™ of £4.29 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 389 Building Materials companies, Breedon Group ranks better than 69.67% 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:BREE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86   Med: -2.62   Max: -1.39
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Breedon Group was -1.39. The lowest was -2.86. And the median was -2.62.

Breedon Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Breedon 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.

Breedon Group Beneish M-Score Chart

Breedon Group 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 -2.73 -2.86 -2.50 -2.57 -2.78

Breedon 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 -2.50 0.00 -2.57 0.00 -2.78

LSE:BREE vs CRH, VMC, MLM: Beneish M-Score Comparison

For the Building Materials subindustry, Breedon 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.

Breedon Group Beneish M-Score vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, Breedon Group's Beneish M-Score distribution charts can be found below:

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


LSE:BREE
84GF Score
Breedon Group PLC LSE:BREE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Breedon 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 Breedon 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 * 0.9282+0.528 * 1.0092+0.404 * 1.0561+0.892 * 1.0872+0.115 * 0.8707
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.060273-0.327 * 1.1226
=-2.78

* 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 £263 Mil.
Revenue was £1,714 Mil.
Gross Profit was £1,368 Mil.
Total Current Assets was £506 Mil.
Total Assets was £2,358 Mil.
Property, Plant and Equipment(Net PPE) was £1,041 Mil.
Depreciation, Depletion and Amortization(DDA) was £139 Mil.
Selling, General, & Admin. Expense(SGA) was £0 Mil.
Total Current Liabilities was £375 Mil.
Long-Term Debt & Capital Lease Obligation was £594 Mil.
Net Income was £84 Mil.
Gross Profit was £0 Mil.
Cash Flow from Operations was £226 Mil.
 Total Receivables was £261 Mil.
Revenue was £1,576 Mil.
Gross Profit was £1,270 Mil.
Total Current Assets was £468 Mil.
Total Assets was £2,155 Mil.
Property, Plant and Equipment(Net PPE) was £986 Mil.
Depreciation, Depletion and Amortization(DDA) was £112 Mil.
Selling, General, & Admin. Expense(SGA) was £0 Mil.
Total Current Liabilities was £363 Mil.
Long-Term Debt & Capital Lease Obligation was £426 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)
=(263.4 / 1713.8) / (261 / 1576.3)
=0.153694 / 0.165578
=0.9282

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)
=(1269.5 / 1576.3) / (1367.7 / 1713.8)
=0.805367 / 0.798051
=1.0092

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 - (506 + 1041.4) / 2357.6) / (1 - (468.2 + 985.6) / 2155.1)
=0.343655 / 0.325414
=1.0561

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
=1713.8 / 1576.3
=1.0872

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))
=(112.2 / (112.2 + 985.6)) / (138.5 / (138.5 + 1041.4))
=0.102204 / 0.117383
=0.8707

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)
=(0 / 1713.8) / (0 / 1576.3)
=0 / 0
=1

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)
=((593.7 + 375.1) / 2357.6) / ((425.5 + 363.4) / 2155.1)
=0.410926 / 0.366062
=1.1226

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
=(83.8 - 0 - 225.9) / 2357.6
=-0.060273

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.

Breedon Group has a M-score of -2.78 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 -2.78 mean?
Breedon Group (LSE:BREE) has a Beneish M-Score of -2.78 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Breedon Group and its competitors. According to the industry distribution chart, Breedon Group ranks #118 out of 389 companies in the Building Materials industry, placing it in the top 30.3%.
Is Breedon Group's Beneish M-Score too high?
Breedon Group's current Beneish M-Score is -2.78. Based on the distribution chart, Breedon Group ranks #118 out of 389 companies in the Building Materials industry, which is above the industry midpoint. Overall, Breedon Group has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Breedon Group's Beneish M-Score compare to CRH and VMC?
According to the Building Materials industry distribution chart, Breedon Group ranks #118 out of 389 companies for Beneish M-Score. This puts Breedon Group in the upper 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 Building Materials company?
A good Beneish M-Score depends on the Building Materials 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 Breedon Group and its competitors. Breedon Group's current Beneish M-Score is -2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Breedon Group stock overvalued right now?
Based on GuruFocus' analysis, Breedon Group (LSE:BREE) is currently considered Modestly Undervalued. The stock's GF Value™ is £4.29, compared to a current price of £3.03 — trading 29.3% below its estimated fair value. The current Beneish M-Score is -2.78. Breedon Group's overall GF Score™ is 84/100 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 Breedon Group (LSE:BREE), the current Beneish M-Score is -2.78 as of Jun. 25, 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 Breedon Group (LSE:BREE) Overvalued in 2026?

Based on GuruFocus' analysis, Breedon Group stock appears to be undervalued. The current stock price of £3.03 is trading 29.3% below its estimated GF Value™ of £4.29. GuruFocus considers Breedon Group to be Modestly Undervalued.

Key valuation signals for LSE:BREE:

  • Beneish M-Score: -2.78
  • GF Value™: £4.29 vs. price of £3.03 (29.3% below fair value)
  • GF Score™: 84/100 with 3 warning signs

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

Breedon Group Business Description

Other Exchanges BRDNF:USABREEl:UK
Address Main Street, Pinnacle House, Breedon Quarry, Breedon on the Hill, Derby, GBR, DE73 8AP
Breedon Group PLC is a producer of construction materials. The products include aggregates such as polished stone value stones, sub-base materials and sands for the road construction industry, milled limestones for agricultural applications, asphalt, ready-mix concrete, concrete beams and blocks, cement, and others. The company's customers range from civil engineering business over local authorities and utilities companies to homes and smaller businesses. The company generates majority of its revenue in the United Kingdom.
84GF Score

Get the complete analysis for LSE:BREE

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

£3.03
Price
£4.29
GF Value