REACT Group (LSE:REAT) Beneish M-Score: -2.52 (As of Jun. 24, 2026)

What is REACT Group Beneish M-Score?

REACT Group LSE:REAT 45 Beneish M-Score is -2.52 as of Jun. 24, 2026. GuruFocus rates LSE:REAT with a GF Score™ of 45/100 and a GF Value™ of £0.82 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,020 Business Services companies, REACT Group ranks worse than 52.94% 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:REAT' s Beneish M-Score Range Over the Past 10 Years
Min: -6.17 Med: -2.78 Max: 1.55
Current: -2.52

During the past 13 years, the highest Beneish M-Score of REACT Group was 1.55. The lowest was -6.17. And the median was -2.78.

REACT Group Beneish M-Score Related Terms

REACT Group Beneish M-Score Historical Data

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The historical data trend for REACT 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.

REACT Group Beneish M-Score Chart

REACT Group Annual Data

Trend

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Sep25

Beneish M-Score

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1.55

-1.35

-3.16

-3.51

-2.52

REACT Group Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															0.00	-3.51	0.00	-2.52	0.00

LSE:REAT vs CTAS, CPRT, GPN: Beneish M-Score Comparison

For the Specialty Business Services subindustry, REACT 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.

REACT Group Beneish M-Score vs Business Services Industry

For the Business Services industry and Industrials sector, REACT Group's Beneish M-Score distribution charts can be found below:

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

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45GF Score

REACT Group PLC LSE:REAT

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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REACT 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 REACT Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1922

0.528 * 0.8603

0.404 * 1.0513

0.892 * 1.2016

0.115 * 1.3293

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2461

4.679 * -0.056204

0.327 * 1.2304

-2.52

This Year (Sep25) TTM:

Last Year (Sep24) TTM:

Total Receivables was £5.33 Mil.
Revenue was £24.93 Mil.
Gross Profit was £8.00 Mil.
Total Current Assets was £6.57 Mil.
Total Assets was £20.66 Mil.
Property, Plant and Equipment(Net PPE) was £1.77 Mil.
Depreciation, Depletion and Amortization(DDA) was £2.46 Mil.
Selling, General, & Admin. Expense(SGA) was £1.65 Mil.
Total Current Liabilities was £6.00 Mil.
Long-Term Debt & Capital Lease Obligation was £2.55 Mil.
Net Income was £-0.34 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £0.82 Mil.

Total Receivables was £3.72 Mil.
Revenue was £20.75 Mil.
Gross Profit was £5.73 Mil.
Total Current Assets was £5.50 Mil.
Total Assets was £13.92 Mil.
Property, Plant and Equipment(Net PPE) was £0.52 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.78 Mil.
Selling, General, & Admin. Expense(SGA) was £1.10 Mil.
Total Current Liabilities was £4.18 Mil.
Long-Term Debt & Capital Lease Obligation was £0.50 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)
	=	(5.329 / 24.932)	/	(3.72 / 20.749)
	=	0.213741	/	0.179286
	=	1.1922

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)
	=	(5.725 / 20.749)	/	(7.996 / 24.932)
	=	0.275917	/	0.320712
	=	0.8603

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 - (6.571 + 1.765) / 20.657)	/	(1 - (5.501 + 0.522) / 13.921)
	=	0.596456	/	0.567344
	=	1.0513

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
	=	24.932	/	20.749
	=	1.2016

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))
	=	(1.781 / (1.781 + 0.522))	/	(2.455 / (2.455 + 1.765))
	=	0.773339	/	0.581754
	=	1.3293

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)
	=	(1.653 / 24.932)	/	(1.104 / 20.749)
	=	0.0663	/	0.053207
	=	1.2461

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)
	=	((2.553 + 5.997) / 20.657)	/	((0.501 + 4.182) / 13.921)
	=	0.413903	/	0.336398
	=	1.2304

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
	=	(-0.34 - 0	-	0.821)	/	20.657
	=	-0.056204

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.

REACT Group has a M-score of -2.52 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 -2.52 mean?

REACT Group (LSE:REAT) has a Beneish M-Score of -2.52 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on REACT Group and its competitors. According to the industry distribution chart, REACT Group ranks #540 out of 1020 companies in the Business Services industry, placing it in the top 52.9%.

Is REACT Group's Beneish M-Score too high?

REACT Group's current Beneish M-Score is -2.52. Based on the distribution chart, REACT Group ranks #540 out of 1020 companies in the Business Services industry, which is below the industry midpoint. Overall, REACT Group has a GF Score™ of 45/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does REACT Group's Beneish M-Score compare to CTAS and CPRT?

According to the Business Services industry distribution chart, REACT Group ranks #540 out of 1020 companies for Beneish M-Score. This places REACT 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 Business Services company?

A good Beneish M-Score depends on the Business Services 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 REACT Group and its competitors. REACT Group's current Beneish M-Score is -2.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is REACT Group stock overvalued right now?

Based on GuruFocus' analysis, REACT Group (LSE:REAT) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.82, compared to a current price of £0.46 — trading 44.5% below its estimated fair value. The current Beneish M-Score is -2.52. REACT Group's overall GF Score™ is 45/100 with 6 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 REACT Group (LSE:REAT), the current Beneish M-Score is -2.52 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 REACT Group (LSE:REAT) Overvalued in 2026?

Based on GuruFocus' analysis, REACT Group stock appears to be undervalued. The current stock price of £0.46 is trading 44.5% below its estimated GF Value™ of £0.82. GuruFocus considers REACT Group to be Significantly Undervalued.

Key valuation signals for LSE:REAT:

Beneish M-Score: -2.52
GF Value™: £0.82 vs. price of £0.46 (44.5% below fair value)
GF Score™: 45/100 with 6 warning signs

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

REACT Group Business Description

Industry Industrials Business Services

Comparable Companies LSE:DSW LSE:MIND LSE:CPP LSE:VNET LSE:GNIP LSE:CTG LSE:WATR CTAS LSE:REL TSX:TRI CPRT GPN ULS TSX:RBA ASX:BXB XAMS:WKL LSE:RTO ARMK LSE:ITRK XPAR:SW

Address Holly House, Shady Lane, Birmingham, GBR, B44 9ER

Website https://www.reactsc.co.uk

REACT Group PLC is engaged in providing cleaning, decontamination, hygiene services, drainage and plumbing including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customer's property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.

45GF Score

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

£0.46

Price

£0.82

GF Value

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