Lloyds Banking Group (LSE:LLD2) Beneish M-Score: -2.42 (As of Jun. 24, 2026)


LSE:LLD2 Lloyds Banking Group PLC LSE:LLD2
54 GF Score
Price $145.29
GF Value $93.26
! 5 Warning Signs
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What is Lloyds Banking Group Beneish M-Score?

Lloyds Banking Group LSE:LLD2 54 Beneish M-Score is -2.42 as of Jun. 24, 2026. GuruFocus rates LSE:LLD2 with a GF Score™ of 54/100 and a GF Value™ of $93.26. The stock has 5 warning signs investors should review. Among 1,396 Banks companies, Lloyds Banking Group ranks better than 53.8% 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:LLD2' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27   Med: -2.45   Max: -2.15
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Lloyds Banking Group was -2.15. The lowest was -3.27. And the median was -2.45.

LSE:LLD2
54GF Score
Lloyds Banking Group PLC LSE:LLD2
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Lloyds Banking 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 Lloyds Banking 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+0.528 * 1+0.404 * 0.9995+0.892 * 1.14+0.115 * 1.0533
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.001104-0.327 * 1.0323
=-2.36

* 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 $0 Mil.
Revenue was $26,811 Mil.
Gross Profit was $26,811 Mil.
Total Current Assets was $0 Mil.
Total Assets was $1,263,818 Mil.
Property, Plant and Equipment(Net PPE) was $14,724 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,655 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $127,369 Mil.
Net Income was $6,237 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $7,632 Mil.
 Total Receivables was $0 Mil.
Revenue was $23,518 Mil.
Gross Profit was $23,518 Mil.
Total Current Assets was $0 Mil.
Total Assets was $1,146,267 Mil.
Property, Plant and Equipment(Net PPE) was $12,789 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,331 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $111,912 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 / 26811.245) / (0 / 23518.331)
=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)
=(23518.331 / 23518.331) / (26811.245 / 26811.245)
=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 + 14724.23) / 1263817.938) / (1 - (0 + 12788.875) / 1146266.751)
=0.988349 / 0.988843
=0.9995

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
=26811.245 / 23518.331
=1.14

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))
=(4331.226 / (4331.226 + 12788.875)) / (4654.618 / (4654.618 + 14724.23))
=0.252991 / 0.240191
=1.0533

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 / 26811.245) / (0 / 23518.331)
=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)
=((127369.478 + 0) / 1263817.938) / ((111911.504 + 0) / 1146266.751)
=0.100782 / 0.097631
=1.0323

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
=(6236.948 - 0 - 7631.861) / 1263817.938
=-0.001104

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.

Lloyds Banking Group has a M-score of -2.36 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 -2.42 mean?
Lloyds Banking Group (LSE:LLD2) has a Beneish M-Score of -2.42 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lloyds Banking Group and its competitors. According to the industry distribution chart, Lloyds Banking Group ranks #645 out of 1396 companies in the Banks industry, placing it in the top 46.2%.
Is Lloyds Banking Group's Beneish M-Score too high?
Lloyds Banking Group's current Beneish M-Score is -2.42. Based on the distribution chart, Lloyds Banking Group ranks #645 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Lloyds Banking Group has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Lloyds Banking Group's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Lloyds Banking Group ranks #645 out of 1396 companies for Beneish M-Score. This puts Lloyds Banking 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 Banks company?
A good Beneish M-Score depends on the Banks 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 Lloyds Banking Group and its competitors. Lloyds Banking Group's current Beneish M-Score is -2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lloyds Banking Group stock overvalued right now?
Lloyds Banking Group (LSE:LLD2) has a current Beneish M-Score of -2.42. The stock's GF Value™ is $93.26, compared to a current price of $145.29 — trading 55.8% above its estimated fair value. The current Beneish M-Score is -2.42. Lloyds Banking Group's overall GF Score™ is 54/100 with 5 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 Lloyds Banking Group (LSE:LLD2), the current Beneish M-Score is -2.42 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 Lloyds Banking Group (LSE:LLD2) Overvalued in 2026?

Based on GuruFocus' analysis, Lloyds Banking Group stock appears to be overvalued. The current stock price of $145.29 is trading 55.8% above its estimated GF Value™ of $93.26.

Key valuation signals for LSE:LLD2:

  • Beneish M-Score: -2.42
  • GF Value™: $93.26 vs. price of $145.29 (55.8% above fair value)
  • GF Score™: 54/100 with 5 warning signs

No single metric tells the full story. See the LSE:LLD2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Lloyds Banking Group Business Description

Address 33 Old Broad Street, London, GBR, EC2N 1HZ
Lloyds is a retail and commercial bank headquartered in the United Kingdom. The bank operates via three business segments: retail, commercial banking, and insurance and wealth. In retail, Lloyds offers primarily mortgages (66% of loan portfolio), credit cards, and current accounts to its customers. Its commercial banking operation provides lending, transaction banking, working capital management, and debt capital market services to large companies and financial institutions in the UK. Insurance and wealth round out the product lineup with life and property insurance as well as pension solutions and high-net-worth asset management services.
54GF Score

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

$145.29
Price
$93.26
GF Value