Principal Financial Group (MEX:PFG) Beneish M-Score: -2.52 (As of Jul. 02, 2026)


MEX:PFG Principal Financial Group Inc MEX:PFG
71 GF Score
Price MXN1,810.00
GF Value MXN1,504.57
! 7 Warning Signs
View Full Analysis

What is Principal Financial Group Beneish M-Score?

Principal Financial Group MEX:PFG 71 Beneish M-Score is -2.52 as of Jul. 02, 2026. GuruFocus rates MEX:PFG with a GF Score™ of 71/100 and a GF Value™ of MXN1,504.57. The stock has 7 warning signs investors should review. Among 949 Asset Management companies, Principal Financial Group ranks better than 62.7% 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:PFG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66   Med: -2.47   Max: 7.26
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Principal Financial Group was 7.26. The lowest was -2.66. And the median was -2.47.

MEX:PFG
71GF Score
Principal Financial Group Inc MEX:PFG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Principal Financial 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 Principal Financial 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 * 1.0159+0.528 * 1+0.404 * 1.0004+0.892 * 0.8365+0.115 * 0.9468
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.009818-0.327 * 0.9121
=-2.63

* 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 MXN412,233 Mil.
Revenue was MXN281,348 Mil.
Gross Profit was MXN281,348 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN6,146,723 Mil.
Property, Plant and Equipment(Net PPE) was MXN12,629 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,527 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN70,696 Mil.
Net Income was MXN21,339 Mil.
Gross Profit was MXN0 Mil.
Cash Flow from Operations was MXN81,686 Mil.
 Total Receivables was MXN485,137 Mil.
Revenue was MXN336,354 Mil.
Gross Profit was MXN336,354 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN6,541,674 Mil.
Property, Plant and Equipment(Net PPE) was MXN16,046 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN5,343 Mil.
Selling, General, & Admin. Expense(SGA) was MXN0 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN82,491 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)
=(412233.299 / 281348.066) / (485136.951 / 336354.473)
=1.465208 / 1.442338
=1.0159

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)
=(336354.473 / 336354.473) / (281348.066 / 281348.066)
=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 + 12629.198) / 6146722.85) / (1 - (0 + 16046.376) / 6541673.938)
=0.997945 / 0.997547
=1.0004

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
=281348.066 / 336354.473
=0.8365

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))
=(5343.23 / (5343.23 + 16046.376)) / (4526.633 / (4526.633 + 12629.198))
=0.249805 / 0.263854
=0.9468

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 / 281348.066) / (0 / 336354.473)
=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)
=((70695.78 + 0) / 6146722.85) / ((82490.55 + 0) / 6541673.938)
=0.011501 / 0.01261
=0.9121

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
=(21338.555 - 0 - 81686.459) / 6146722.85
=-0.009818

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.

Principal Financial Group has a M-score of -2.63 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?
Principal Financial Group (MEX:PFG) has a Beneish M-Score of -2.52 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Principal Financial Group and its competitors. According to the industry distribution chart, Principal Financial Group ranks #354 out of 949 companies in the Asset Management industry, placing it in the top 37.3%.
Is Principal Financial Group's Beneish M-Score too high?
Principal Financial Group's current Beneish M-Score is -2.52. Based on the distribution chart, Principal Financial Group ranks #354 out of 949 companies in the Asset Management industry, which is above the industry midpoint. Overall, Principal Financial Group has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Principal Financial Group's Beneish M-Score compare to TROW and ARES?
According to the Asset Management industry distribution chart, Principal Financial Group ranks #354 out of 949 companies for Beneish M-Score. This puts Principal Financial 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 an Asset Management company?
A good Beneish M-Score depends on the Asset Management 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 Principal Financial Group and its competitors. Principal Financial 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 Principal Financial Group stock overvalued right now?
Principal Financial Group (MEX:PFG) has a current Beneish M-Score of -2.52. The stock's GF Value™ is MXN1,504.57, compared to a current price of MXN1,810.00 — trading 20.3% above its estimated fair value. The current Beneish M-Score is -2.52. Principal Financial Group's overall GF Score™ is 71/100 with 7 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 Principal Financial Group (MEX:PFG), the current Beneish M-Score is -2.52 as of Jul. 02, 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 Principal Financial Group (MEX:PFG) Overvalued in 2026?

Based on GuruFocus' analysis, Principal Financial Group stock appears to be overvalued. The current stock price of MXN1,810.00 is trading 20.3% above its estimated GF Value™ of MXN1,504.57.

Key valuation signals for MEX:PFG:

  • Beneish M-Score: -2.52
  • GF Value™: MXN1,504.57 vs. price of MXN1,810.00 (20.3% above fair value)
  • GF Score™: 71/100 with 7 warning signs

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

Principal Financial Group Business Description

Other Exchanges PFG:USA0KO5:UKPG4:Germany
Address 711 High Street, Des Moines, IA, USA, 50392
Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients. The company, along with its subsidiaries, operates in the following reportable segments; Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Maximum revenue is generated from the Retirement and Income Solutions segment which provides workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, and investment services to businesses, their employees, and other individuals.
71GF Score

Get the complete analysis for MEX:PFG

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

MXN1,810.00
Price
MXN1,504.57
GF Value