Terna SpA (MEX:TRN1N) Beneish M-Score: -2.64 (As of Jun. 26, 2026)


What is Terna SpA Beneish M-Score?

Terna SpA MEX:TRN1N 84 Beneish M-Score is -2.64 as of Jun. 26, 2026. GuruFocus rates MEX:TRN1N with a GF Score™ of 84/100. The stock has 3 warning signs investors should review. Among 486 Utilities - Regulated companies, Terna SpA ranks better than 57.82% 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:TRN1N' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.61   Max: -1.54
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Terna SpA was -1.54. The lowest was -2.96. And the median was -2.61.

Terna SpA Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Terna SpA'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.

Terna SpA Beneish M-Score Chart

Terna SpA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.54 -2.75 -2.59 -2.19 -2.64

Terna SpA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -2.64 0.00

MEX:TRN1N vs NEE, SO, DUK: Beneish M-Score Comparison

For the Utilities - Regulated Electric subindustry, Terna SpA'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.

Terna SpA Beneish M-Score vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Terna SpA's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Terna SpA's Beneish M-Score falls into.


Terna SpA 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 Terna SpA 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 * 0.9116+0.528 * 1.005+0.404 * 1.1413+0.892 * 1.0578+0.115 * 1.041
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.887+4.679 * -0.050569-0.327 * 1.0231
=-2.67

* 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 MXN69,146.95 Mil.
Revenue was MXN84,378.00 Mil.
Gross Profit was MXN76,941.69 Mil.
Total Current Assets was MXN130,378.98 Mil.
Total Assets was MXN632,156.09 Mil.
Property, Plant and Equipment(Net PPE) was MXN456,786.06 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN19,953.86 Mil.
Selling, General, & Admin. Expense(SGA) was MXN438.55 Mil.
Total Current Liabilities was MXN141,958.29 Mil.
Long-Term Debt & Capital Lease Obligation was MXN292,786.60 Mil.
Net Income was MXN23,434.82 Mil.
Gross Profit was MXN0.00 Mil.
Cash Flow from Operations was MXN55,402.32 Mil.
 Total Receivables was MXN71,706.48 Mil.
Revenue was MXN79,764.86 Mil.
Gross Profit was MXN73,099.77 Mil.
Total Current Assets was MXN136,581.91 Mil.
Total Assets was MXN593,712.64 Mil.
Property, Plant and Equipment(Net PPE) was MXN420,108.05 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN19,139.20 Mil.
Selling, General, & Admin. Expense(SGA) was MXN467.34 Mil.
Total Current Liabilities was MXN149,896.80 Mil.
Long-Term Debt & Capital Lease Obligation was MXN249,185.21 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)
=(69146.948 / 84377.999) / (71706.483 / 79764.863)
=0.81949 / 0.898973
=0.9116

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)
=(73099.774 / 79764.863) / (76941.687 / 84377.999)
=0.916441 / 0.911869
=1.005

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 - (130378.979 + 456786.055) / 632156.091) / (1 - (136581.905 + 420108.049) / 593712.643)
=0.071171 / 0.062358
=1.1413

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
=84377.999 / 79764.863
=1.0578

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))
=(19139.199 / (19139.199 + 420108.049)) / (19953.858 / (19953.858 + 456786.055))
=0.043573 / 0.041855
=1.041

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)
=(438.546 / 84377.999) / (467.342 / 79764.863)
=0.005197 / 0.005859
=0.887

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)
=((292786.597 + 141958.288) / 632156.091) / ((249185.214 + 149896.795) / 593712.643)
=0.687718 / 0.67218
=1.0231

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
=(23434.819 - 0 - 55402.316) / 632156.091
=-0.050569

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.

Terna SpA has a M-score of -2.67 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 -2.64 mean?
Terna SpA (MEX:TRN1N) has a Beneish M-Score of -2.64 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Terna SpA and its competitors. According to the industry distribution chart, Terna SpA ranks #205 out of 486 companies in the Utilities - Regulated industry, placing it in the top 42.2%.
Is Terna SpA's Beneish M-Score too high?
Terna SpA's current Beneish M-Score is -2.64. Based on the distribution chart, Terna SpA ranks #205 out of 486 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Terna SpA has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Terna SpA's Beneish M-Score compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Terna SpA ranks #205 out of 486 companies for Beneish M-Score. This puts Terna SpA 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 Utilities - Regulated company?
A good Beneish M-Score depends on the Utilities - Regulated 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 Terna SpA and its competitors. Terna SpA's current Beneish M-Score is -2.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terna SpA stock overvalued right now?
Terna SpA (MEX:TRN1N) has a current Beneish M-Score of -2.64. The current Beneish M-Score is -2.64. Terna SpA's overall GF Score™ is 84/100 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 Terna SpA (MEX:TRN1N), the current Beneish M-Score is -2.64 as of Jun. 26, 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.

Terna SpA Business Description

Address Viale Egidio Galbani 70, Rome, ITA, 00156
Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.