Federal National Mortgage Association Fannie Mae (LTS:0IL0) Beneish M-Score: -2.47 (As of Jun. 24, 2026)


LTS:0IL0 Federal National Mortgage Association Fannie Mae LTS:0IL0
46 GF Score
Price $6.21
GF Value $2.32
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Federal National Mortgage Association Fannie Mae Beneish M-Score?

Federal National Mortgage Association Fannie Mae LTS:0IL0 -0.96% 46 Beneish M-Score is -2.47 as of Jun. 24, 2026. GuruFocus rates LTS:0IL0 with a GF Score™ of 46/100 and a GF Value™ of $2.32 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,396 Banks companies, Federal National Mortgage Association Fannie Mae ranks better than 64.11% 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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Federal National Mortgage Association Fannie Mae's Beneish M-Score or its related term are showing as below:

LTS:0IL0' s Beneish M-Score Range Over the Past 10 Years
Min: -2.55   Med: -2.43   Max: -2.15
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Federal National Mortgage Association Fannie Mae was -2.15. The lowest was -2.55. And the median was -2.43.

LTS:0IL0
46GF Score
Federal National Mortgage Association Fannie Mae LTS:0IL0
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Federal National Mortgage Association Fannie Mae 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 Federal National Mortgage Association Fannie Mae 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 * 1.0748+0.528 * 1+0.404 * 1+0.892 * 0.9563+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9672+4.679 * -0.005225-0.327 * 0.9934
=-2.47

* 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 $11,915 Mil.
Revenue was 7124 + 7188 + 7319 + 7444 = $29,075 Mil.
Gross Profit was 7124 + 7188 + 7319 + 7444 = $29,075 Mil.
Total Current Assets was $0 Mil.
Total Assets was $4,314,635 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,946 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $4,152,200 Mil.
Net Income was 3720 + 3527 + 3859 + 3317 = $14,423 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 16484 + 5991 + 9585 + 4908 = $36,968 Mil.
 Total Receivables was $11,592 Mil.
Revenue was 7207 + 8071 + 7405 + 7721 = $30,404 Mil.
Gross Profit was 7207 + 8071 + 7405 + 7721 = $30,404 Mil.
Total Current Assets was $0 Mil.
Total Assets was $4,353,709 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $2,104 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $4,217,617 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)
=(11915 / 29075) / (11592 / 30404)
=0.409802 / 0.381266
=1.0748

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)
=(30404 / 30404) / (29075 / 29075)
=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) / 4314635) / (1 - (0 + 0) / 4353709)
=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
=29075 / 30404
=0.9563

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)
=(1946 / 29075) / (2104 / 30404)
=0.06693 / 0.069201
=0.9672

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)
=((4152200 + 0) / 4314635) / ((4217617 + 0) / 4353709)
=0.962353 / 0.968741
=0.9934

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
=(14423 - 0 - 36968) / 4314635
=-0.005225

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.

Federal National Mortgage Association Fannie Mae has a M-score of -2.47 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 -2.47 mean?
Federal National Mortgage Association Fannie Mae (LTS:0IL0) has a Beneish M-Score of -2.47 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Federal National Mortgage Association Fannie Mae and its competitors. According to the industry distribution chart, Federal National Mortgage Association Fannie Mae ranks #501 out of 1396 companies in the Banks industry, placing it in the top 35.9%.
Is Federal National Mortgage Association Fannie Mae's Beneish M-Score too high?
Federal National Mortgage Association Fannie Mae's current Beneish M-Score is -2.47. Based on the distribution chart, Federal National Mortgage Association Fannie Mae ranks #501 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Federal National Mortgage Association Fannie Mae has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federal National Mortgage Association Fannie Mae's Beneish M-Score compare to PFSI and FMCC?
According to the Banks industry distribution chart, Federal National Mortgage Association Fannie Mae ranks #501 out of 1396 companies for Beneish M-Score. This puts Federal National Mortgage Association Fannie Mae 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 Federal National Mortgage Association Fannie Mae and its competitors. Federal National Mortgage Association Fannie Mae's current Beneish M-Score is -2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal National Mortgage Association Fannie Mae stock overvalued right now?
Based on GuruFocus' analysis, Federal National Mortgage Association Fannie Mae (LTS:0IL0) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.32, compared to a current price of $6.21 — trading 167.7% above its estimated fair value. The current Beneish M-Score is -2.47. Federal National Mortgage Association Fannie Mae's overall GF Score™ is 46/100 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 Federal National Mortgage Association Fannie Mae (LTS:0IL0), the current Beneish M-Score is -2.47 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 Federal National Mortgage Association Fannie Mae (LTS:0IL0) Overvalued in 2026?

Based on GuruFocus' analysis, Federal National Mortgage Association Fannie Mae stock appears to be overvalued. The current stock price of $6.21 is trading 167.7% above its estimated GF Value™ of $2.32. GuruFocus considers Federal National Mortgage Association Fannie Mae to be Significantly Overvalued.

Key valuation signals for LTS:0IL0:

  • Beneish M-Score: -2.47
  • GF Value™: $2.32 vs. price of $6.21 (167.7% above fair value)
  • GF Score™: 46/100 with 3 warning signs

No single metric tells the full story. See the LTS:0IL0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Federal National Mortgage Association Fannie Mae Business Description

Address 1100 15th Street, NW, Midtown Center, Washington, DC, USA, 20005
Federal National Mortgage Association Fannie Mae is a source of financing for mortgages in the United States. The company has two segments namely the Single-Family business that operates in the secondary mortgage market relating to single-family mortgage loans, which are secured by properties containing four or fewer residential dwelling units and the Multifamily business operates in the secondary mortgage market relating mainly to multifamily mortgage loans, which are secured by properties containing five or more residential units. The majority of the revenue is derived from the Single-Family segment.
46GF Score

Get the complete analysis for LTS:0IL0

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

$6.21
Price
$2.32
GF Value