The European Smaller Trust (LSE:ESCT) Beneish M-Score: -3.46 (As of Jun. 25, 2026)


LSE:ESCT The European Smaller Companies Trust PLC LSE:ESCT
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What is The European Smaller Trust Beneish M-Score?

The European Smaller Trust LSE:ESCT -0.64% 40 Beneish M-Score is -3.46 as of Jun. 25, 2026. GuruFocus rates LSE:ESCT with a GF Score™ of 40/100. The stock has 4 warning signs investors should review. Among 955 Asset Management companies, The European Smaller Trust ranks better than 89.11% 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 -3.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:ESCT' s Beneish M-Score Range Over the Past 10 Years
Min: -6.7   Med: -1.49   Max: 17.05
Current: -3.46

During the past 13 years, the highest Beneish M-Score of The European Smaller Trust was 17.05. The lowest was -6.70. And the median was -1.49.

LSE:ESCT
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The European Smaller Companies Trust PLC LSE:ESCT
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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The European Smaller Trust 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 The European Smaller Trust 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 * 1+0.892 * 1.0719+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.0369+4.679 * -0.245006-0.327 * 0.1543
=-3.46

* 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 £0.0 Mil.
Revenue was £93.3 Mil.
Gross Profit was £93.3 Mil.
Total Current Assets was £0.0 Mil.
Total Assets was £524.0 Mil.
Property, Plant and Equipment(Net PPE) was £0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.0 Mil.
Selling, General, & Admin. Expense(SGA) was £1.7 Mil.
Total Current Liabilities was £0.0 Mil.
Long-Term Debt & Capital Lease Obligation was £8.2 Mil.
Net Income was £90.1 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £218.5 Mil.
 Total Receivables was £0.0 Mil.
Revenue was £87.0 Mil.
Gross Profit was £87.0 Mil.
Total Current Assets was £0.0 Mil.
Total Assets was £891.7 Mil.
Property, Plant and Equipment(Net PPE) was £0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.0 Mil.
Selling, General, & Admin. Expense(SGA) was £0.8 Mil.
Total Current Liabilities was £0.0 Mil.
Long-Term Debt & Capital Lease Obligation was £90.2 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 / 93.298) / (0 / 87.039)
=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)
=(87.039 / 87.039) / (93.298 / 93.298)
=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 + 0) / 524.041) / (1 - (0 + 0) / 891.661)
=1 / 1
=1

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
=93.298 / 87.039
=1.0719

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 / (0 + 0)) / (0 / (0 + 0))
= /
=1

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)
=(1.69 / 93.298) / (0.774 / 87.039)
=0.018114 / 0.008893
=2.0369

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)
=((8.182 + 0) / 524.041) / ((90.219 + 0) / 891.661)
=0.015613 / 0.101181
=0.1543

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
=(90.057 - 0 - 218.45) / 524.041
=-0.245006

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.

The European Smaller Trust has a M-score of -3.46 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 -3.46 mean?
The European Smaller Trust (LSE:ESCT) has a Beneish M-Score of -3.46 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on The European Smaller Trust and its competitors. According to the industry distribution chart, The European Smaller Trust ranks #104 out of 955 companies in the Asset Management industry, placing it in the top 10.9%.
Is The European Smaller Trust's Beneish M-Score too high?
The European Smaller Trust's current Beneish M-Score is -3.46. Based on the distribution chart, The European Smaller Trust ranks #104 out of 955 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, The European Smaller Trust has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does The European Smaller Trust's Beneish M-Score compare to BLK and BX?
According to the Asset Management industry distribution chart, The European Smaller Trust ranks #104 out of 955 companies for Beneish M-Score. This places The European Smaller Trust in the top 11% of its industry — outperforming the majority of peers. 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 Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 The European Smaller Trust and its competitors. The European Smaller Trust's current Beneish M-Score is -3.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The European Smaller Trust stock overvalued right now?
The European Smaller Trust (LSE:ESCT) has a current Beneish M-Score of -3.46. The current Beneish M-Score is -3.46. The European Smaller Trust's overall GF Score™ is 40/100 with 4 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 The European Smaller Trust (LSE:ESCT), the current Beneish M-Score is -3.46 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.

The European Smaller Trust Business Description

Address 201 Bishopsgate, London, GBR, EC2M 3AE
The European Smaller Companies Trust PLC is a United Kingdom-based trust focused on capital growth through equities in smaller and medium-sized European companies. It focuses on equities from smaller and medium-sized companies quoted, domiciled, listed, or operating across Europe, excluding the UK. Its portfolio includes industrial goods, technology, financials, business providers, basic materials, consumer goods, retail providers and natural resource sectors.
40GF Score

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

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