Sandoz Group AG (MEX:SDZN) Beneish M-Score: -2.79 (As of Jun. 27, 2026)


MEX:SDZN Sandoz Group AG MEX:SDZN
16 GF Score
Price MXN1,481.70
! 6 Warning Signs
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What is Sandoz Group AG Beneish M-Score?

Sandoz Group AG MEX:SDZN 16 Beneish M-Score is -2.79 as of Jun. 27, 2026. GuruFocus rates MEX:SDZN with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 911 Drug Manufacturers companies, Sandoz Group AG ranks better than 74.09% 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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:SDZN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79   Med: -2.7   Max: -2.61
Current: -2.79

During the past 4 years, the highest Beneish M-Score of Sandoz Group AG was -2.61. The lowest was -2.79. And the median was -2.70.

Sandoz Group AG Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Sandoz Group AG'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.

Sandoz Group AG Beneish M-Score Chart

Sandoz Group AG Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -2.61 -2.79

Sandoz Group AG Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial 0.00 0.00 -2.61 0.00 -2.79

MEX:SDZN vs ZTS, UTHR, VTRS: Beneish M-Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG'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.

Sandoz Group AG Beneish M-Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Beneish M-Score distribution charts can be found below:

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


MEX:SDZN
16GF Score
Sandoz Group AG MEX:SDZN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Sandoz Group AG 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 Sandoz Group AG 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 * 0.8198+0.528 * 1.0016+0.404 * 0.9901+0.892 * 0.9276+0.115 * 1.23
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9674+4.679 * -0.030864-0.327 * 0.9803
=-2.82

* 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 MXN49,894 Mil.
Revenue was MXN200,890 Mil.
Gross Profit was MXN95,142 Mil.
Total Current Assets was MXN147,017 Mil.
Total Assets was MXN396,702 Mil.
Property, Plant and Equipment(Net PPE) was MXN50,056 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN9,813 Mil.
Selling, General, & Admin. Expense(SGA) was MXN45,536 Mil.
Total Current Liabilities was MXN124,149 Mil.
Long-Term Debt & Capital Lease Obligation was MXN90,209 Mil.
Net Income was MXN16,457 Mil.
Gross Profit was MXN0 Mil.
Cash Flow from Operations was MXN28,701 Mil.
 Total Receivables was MXN65,612 Mil.
Revenue was MXN216,566 Mil.
Gross Profit was MXN102,735 Mil.
Total Current Assets was MXN162,695 Mil.
Total Assets was MXN415,174 Mil.
Property, Plant and Equipment(Net PPE) was MXN41,461 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN10,470 Mil.
Selling, General, & Admin. Expense(SGA) was MXN50,742 Mil.
Total Current Liabilities was MXN131,537 Mil.
Long-Term Debt & Capital Lease Obligation was MXN97,313 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)
=(49893.795 / 200889.595) / (65612.032 / 216565.589)
=0.248364 / 0.302966
=0.8198

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)
=(102735.178 / 216565.589) / (95142.119 / 200889.595)
=0.474384 / 0.473604
=1.0016

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 - (147016.541 + 50055.846) / 396701.583) / (1 - (162695.316 + 41461.132) / 415174.42)
=0.503223 / 0.508263
=0.9901

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
=200889.595 / 216565.589
=0.9276

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))
=(10469.561 / (10469.561 + 41461.132)) / (9813.107 / (9813.107 + 50055.846))
=0.201606 / 0.16391
=1.23

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)
=(45536.415 / 200889.595) / (50741.918 / 216565.589)
=0.226674 / 0.234303
=0.9674

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)
=((90208.557 + 124149.302) / 396701.583) / ((97312.696 + 131536.9) / 415174.42)
=0.54035 / 0.551213
=0.9803

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
=(16457.21 - 0 - 28701.086) / 396701.583
=-0.030864

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.

Sandoz Group AG has a M-score of -2.82 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 -2.79 mean?
Sandoz Group AG (MEX:SDZN) has a Beneish M-Score of -2.79 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sandoz Group AG and its competitors. According to the industry distribution chart, Sandoz Group AG ranks #236 out of 911 companies in the Drug Manufacturers industry, placing it in the top 25.9%.
Is Sandoz Group AG's Beneish M-Score too high?
Sandoz Group AG's current Beneish M-Score is -2.79. Based on the distribution chart, Sandoz Group AG ranks #236 out of 911 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Sandoz Group AG has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's Beneish M-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sandoz Group AG ranks #236 out of 911 companies for Beneish M-Score. This puts Sandoz Group AG 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Sandoz Group AG and its competitors. Sandoz Group AG's current Beneish M-Score is -2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Sandoz Group AG (MEX:SDZN) has a current Beneish M-Score of -2.79. The current Beneish M-Score is -2.79. Sandoz Group AG's overall GF Score™ is 16/100 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 Sandoz Group AG (MEX:SDZN), the current Beneish M-Score is -2.79 as of Jun. 27, 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.

Sandoz Group AG Business Description

Address Centralbahnstrasse 4, Basel, CHE, 4051
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
16GF Score

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

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