Bread Financial Holdings (LTS:0HCR) Beneish M-Score: -2.73 (As of Jun. 25, 2026)


LTS:0HCR Bread Financial Holdings Inc LTS:0HCR
64 GF Score
Price $105.19
GF Value $57.25
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Bread Financial Holdings Beneish M-Score?

Bread Financial Holdings LTS:0HCR +1.52% 64 Beneish M-Score is -2.73 as of Jun. 25, 2026. GuruFocus rates LTS:0HCR with a GF Score™ of 64/100 and a GF Value™ of $57.25 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 483 Credit Services companies, Bread Financial Holdings ranks better than 78.88% 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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LTS:0HCR' s Beneish M-Score Range Over the Past 10 Years
Min: -5.15   Med: -2.75   Max: -2.32
Current: -2.73

During the past 13 years, the highest Beneish M-Score of Bread Financial Holdings was -2.32. The lowest was -5.15. And the median was -2.75.

LTS:0HCR
64GF Score
Bread Financial Holdings Inc LTS:0HCR
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bread Financial Holdings 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 Bread Financial Holdings 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 * 1.0009+0.892 * 1.0199+0.115 * 0.97
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9656+4.679 * -0.072799-0.327 * 0.7721
=-2.73

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $0 Mil.
Revenue was 1018 + 975 + 971 + 929 = $3,893 Mil.
Gross Profit was 1018 + 975 + 971 + 929 = $3,893 Mil.
Total Current Assets was $0 Mil.
Total Assets was $22,308 Mil.
Property, Plant and Equipment(Net PPE) was $112 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General, & Admin. Expense(SGA) was $1,037 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,941 Mil.
Net Income was 181 + 54 + 188 + 139 = $562 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 487 + 568 + 605 + 526 = $2,186 Mil.
 Total Receivables was $0 Mil.
Revenue was 970 + 925 + 983 + 939 = $3,817 Mil.
Gross Profit was 970 + 925 + 983 + 939 = $3,817 Mil.
Total Current Assets was $0 Mil.
Total Assets was $22,382 Mil.
Property, Plant and Equipment(Net PPE) was $133 Mil.
Depreciation, Depletion and Amortization(DDA) was $88 Mil.
Selling, General, & Admin. Expense(SGA) was $1,053 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $5,121 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 / 3893) / (0 / 3817)
=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)
=(3817 / 3817) / (3893 / 3893)
=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 + 112) / 22308) / (1 - (0 + 133) / 22382)
=0.994979 / 0.994058
=1.0009

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
=3893 / 3817
=1.0199

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))
=(88 / (88 + 133)) / (78 / (78 + 112))
=0.39819 / 0.410526
=0.97

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)
=(1037 / 3893) / (1053 / 3817)
=0.266376 / 0.275871
=0.9656

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)
=((3941 + 0) / 22308) / ((5121 + 0) / 22382)
=0.176663 / 0.2288
=0.7721

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
=(562 - 0 - 2186) / 22308
=-0.072799

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.

Bread Financial Holdings has a M-score of -2.73 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 -2.73 mean?
Bread Financial Holdings (LTS:0HCR) has a Beneish M-Score of -2.73 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bread Financial Holdings and its competitors. According to the industry distribution chart, Bread Financial Holdings ranks #102 out of 483 companies in the Credit Services industry, placing it in the top 21.1%.
Is Bread Financial Holdings' Beneish M-Score too high?
Bread Financial Holdings' current Beneish M-Score is -2.73. Based on the distribution chart, Bread Financial Holdings ranks #102 out of 483 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Bread Financial Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' Beneish M-Score compare to UPST and SEZL?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #102 out of 483 companies for Beneish M-Score. This places Bread Financial Holdings in the top 21% 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 a Credit Services company?
A good Beneish M-Score depends on the Credit 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 Bread Financial Holdings and its competitors. Bread Financial Holdings's current Beneish M-Score is -2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bread Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Bread Financial Holdings (LTS:0HCR) is currently considered Significantly Overvalued. The stock's GF Value™ is $57.25, compared to a current price of $105.19 — trading 83.7% above its estimated fair value. The current Beneish M-Score is -2.73. Bread Financial Holdings' overall GF Score™ is 64/100 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 Bread Financial Holdings (LTS:0HCR), the current Beneish M-Score is -2.73 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 Bread Financial Holdings (LTS:0HCR) Overvalued in 2026?

Based on GuruFocus' analysis, Bread Financial Holdings stock appears to be overvalued. The current stock price of $105.19 is trading 83.7% above its estimated GF Value™ of $57.25. GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.

Key valuation signals for LTS:0HCR:

  • Beneish M-Score: -2.73
  • GF Value™: $57.25 vs. price of $105.19 (83.7% above fair value)
  • GF Score™: 64/100 with 5 warning signs

No single metric tells the full story. See the LTS:0HCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bread Financial Holdings Business Description

Address 3095 Loyalty Circle, Columbus, OH, USA, 43219
Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial is a provider of private-label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains a minority interest in spun-off LoyaltyOne, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.
64GF Score

Get the complete analysis for LTS:0HCR

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

$105.19
Price
$57.25
GF Value