MFGI (Merchants Financial Group) Beneish M-Score: -2.27 (As of Jul. 31, 2026)

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MFGI Merchants Financial Group Inc MFGI
49 GF Score
Price $41.35
GF Value $28.33
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Merchants Financial Group Beneish M-Score?

Merchants Financial Group MFGI 49 Beneish M-Score is -2.27 as of Jul. 31, 2026. GuruFocus rates MFGI with a GF Score™ of 49/100 and a GF Value™ of $28.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,392 Banks companies, Merchants Financial Group ranks worse than 72.27% 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MFGI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.54   Med: -2.5   Max: -2.27
Current: -2.27

During the past 7 years, the highest Beneish M-Score of Merchants Financial Group was -2.27. The lowest was -2.54. And the median was -2.50.

MFGI
49GF Score
Merchants Financial Group Inc MFGI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Merchants 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 Merchants 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+0.528 * 1+0.404 * 1.003+0.892 * 1.0936+0.115 * 0.9956
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.007368-0.327 * 0.7137
=-2.27

* 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 $0.0 Mil.
Revenue was $122.9 Mil.
Gross Profit was $122.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,900.5 Mil.
Property, Plant and Equipment(Net PPE) was $34.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.5 Mil.
Selling, General, & Admin. Expense(SGA) was $0.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $30.0 Mil.
Net Income was $32.4 Mil.
Gross Profit was $0.0 Mil.
Cash Flow from Operations was $11.0 Mil.
 Total Receivables was $0.0 Mil.
Revenue was $112.4 Mil.
Gross Profit was $112.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,782.1 Mil.
Property, Plant and Equipment(Net PPE) was $41.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.5 Mil.
Selling, General, & Admin. Expense(SGA) was $0.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $40.3 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 / 122.947) / (0 / 112.426)
=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)
=(112.426 / 112.426) / (122.947 / 122.947)
=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 + 34.823) / 2900.481) / (1 - (0 + 41.731) / 2782.107)
=0.987994 / 0.985
=1.003

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
=122.947 / 112.426
=1.0936

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))
=(6.517 / (6.517 + 41.731)) / (5.466 / (5.466 + 34.823))
=0.135073 / 0.13567
=0.9956

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 / 122.947) / (0 / 112.426)
=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)
=((29.95 + 0) / 2900.481) / ((40.251 + 0) / 2782.107)
=0.010326 / 0.014468
=0.7137

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
=(32.378 - 0 - 11.006) / 2900.481
=0.007368

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.

Merchants Financial Group has a M-score of -2.27 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 -2.27 mean?
Merchants Financial Group (MFGI) has a Beneish M-Score of -2.27 as of Jul. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Merchants Financial Group and its competitors. According to the industry distribution chart, Merchants Financial Group ranks #1006 out of 1392 companies in the Banks industry, placing it in the top 72.3%.
Is Merchants Financial Group's Beneish M-Score too high?
Merchants Financial Group's current Beneish M-Score is -2.27. Based on the distribution chart, Merchants Financial Group ranks #1006 out of 1392 companies in the Banks industry, which is below the industry midpoint. Overall, Merchants Financial Group has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merchants Financial Group's Beneish M-Score compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #1006 out of 1392 companies for Beneish M-Score. This places Merchants Financial Group in the lower 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 Merchants Financial Group and its competitors. Merchants Financial Group's current Beneish M-Score is -2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Merchants Financial Group (MFGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.33, compared to a current price of $41.35 — trading 46% above its estimated fair value. The current Beneish M-Score is -2.27. Merchants Financial Group's overall GF Score™ is 49/100 with 4 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 Merchants Financial Group (MFGI), the current Beneish M-Score is -2.27 as of Jul. 31, 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 Merchants Financial Group (MFGI) Overvalued in 2026?

Based on GuruFocus' analysis, Merchants Financial Group stock appears to be overvalued. The current stock price of $41.35 is trading 46% above its estimated GF Value™ of $28.33. GuruFocus considers Merchants Financial Group to be Significantly Overvalued.

Key valuation signals for MFGI:

  • Beneish M-Score: -2.27
  • GF Value™: $28.33 vs. price of $41.35 (46% above fair value)
  • GF Score™: 49/100 with 4 warning signs

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

Merchants Financial Group Business Description

Address 102 E. Third Street, Winona, MN, USA, 55987
Merchants Financial Group Inc is a bank holding company. Through its banking subsidiary, it provides retail, commercial loans, and deposit services to individual as well as business customers. The various products and services offered by the Group include business credit cards, treasury management services, online and mobile banking services, different types of loans, checking accounts, saving accounts, digital wallet, military banking services, mortgage loans, etc. These services are offered through a network of branch offices and a leasing division across Winona, Goodview, Rushford, Lanesboro, St. Charles, Rochester, La Crescent, Caledonia, Spring Grove, and other locations in the USA.
49GF Score

Get the complete analysis for MFGI

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

$41.35
Price
$28.33
GF Value