Bread Financial Holdings (MEX:BFH) Beneish M-Score: -2.73 (As of Aug. 03, 2026)

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MEX:BFH Bread Financial Holdings Inc MEX:BFH
59 GF Score
Price MXN1,156.00
GF Value MXN619.24
! 5 Warning Signs
View Full Analysis

What is Bread Financial Holdings Beneish M-Score?

Bread Financial Holdings MEX:BFH 59 Beneish M-Score is -2.73 as of Aug. 03, 2026. GuruFocus rates MEX:BFH with a GF Score™ of 59/100 and a GF Value™ of MXN619.24. The stock has 5 warning signs investors should review. Among 488 Credit Services companies, Bread Financial Holdings ranks better than 79.1% 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:

MEX:BFH' 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.

MEX:BFH
59GF Score
Bread Financial Holdings Inc MEX:BFH
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

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 * 0.9409+0.115 * 0.9424
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9635+4.679 * -0.073854-0.327 * 0.7721
=-2.80

* 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 MXN0 Mil.
Revenue was 18357.289 + 17555.558 + 17812.218 + 17492.327 = MXN71,217 Mil.
Gross Profit was 18357.289 + 17555.558 + 17812.218 + 17492.327 = MXN71,217 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN402,273 Mil.
Property, Plant and Equipment(Net PPE) was MXN2,020 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,429 Mil.
Selling, General, & Admin. Expense(SGA) was MXN18,969 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN71,067 Mil.
Net Income was 3263.919 + 972.308 + 3448.71 + 2617.259 = MXN10,302 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = MXN0 Mil.
Cash Flow from Operations was 8781.925 + 10227.238 + 11098.241 + 9904.159 = MXN40,012 Mil.
 Total Receivables was MXN0 Mil.
Revenue was 19844.454 + 19291.522 + 19355.565 + 17202.577 = MXN75,694 Mil.
Gross Profit was 19844.454 + 19291.522 + 19355.565 + 17202.577 = MXN75,694 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN457,895 Mil.
Property, Plant and Equipment(Net PPE) was MXN2,721 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,743 Mil.
Selling, General, & Admin. Expense(SGA) was MXN20,925 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN104,766 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 / 71217.392) / (0 / 75694.118)
=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)
=(75694.118 / 75694.118) / (71217.392 / 71217.392)
=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 + 2019.662) / 402273.472) / (1 - (0 + 2720.941) / 457895.433)
=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
=71217.392 / 75694.118
=0.9409

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))
=(1742.996 / (1742.996 + 2720.941)) / (1428.682 / (1428.682 + 2019.662))
=0.390462 / 0.41431
=0.9424

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)
=(18969.387 / 71217.392) / (20925.388 / 75694.118)
=0.266359 / 0.276447
=0.9635

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)
=((71066.871 + 0) / 402273.472) / ((104766.442 + 0) / 457895.433)
=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
=(10302.196 - 0 - 40011.563) / 402273.472
=-0.073854

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 -2.80 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 (MEX:BFH) has a Beneish M-Score of -2.73 as of Aug. 03, 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 488 companies in the Credit Services industry, placing it in the top 20.9%.
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 488 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 59/100, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' Beneish M-Score compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #102 out of 488 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?
Bread Financial Holdings (MEX:BFH) has a current Beneish M-Score of -2.73. The stock's GF Value™ is MXN619.24, compared to a current price of MXN1,156.00 — trading 86.7% above its estimated fair value. The current Beneish M-Score is -2.73. Bread Financial Holdings' overall GF Score™ is 59/100 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 (MEX:BFH), the current Beneish M-Score is -2.73 as of Aug. 03, 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 (MEX:BFH) Overvalued in 2026?

Based on GuruFocus' analysis, Bread Financial Holdings stock appears to be overvalued. The current stock price of MXN1,156.00 is trading 86.7% above its estimated GF Value™ of MXN619.24.

Key valuation signals for MEX:BFH:

  • Beneish M-Score: -2.73
  • GF Value™: MXN619.24 vs. price of MXN1,156.00 (86.7% above fair value)
  • GF Score™: 59/100 with 5 warning signs

No single metric tells the full story. See the MEX:BFH 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.
59GF Score

Get the complete analysis for MEX:BFH

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

MXN1,156.00
Price
MXN619.24
GF Value