ABSA Bank Kenya (NAI:ABSA) Beneish M-Score: -2.25 (As of Jun. 26, 2026)


NAI:ABSA ABSA Bank Kenya PLC NAI:ABSA
75 GF Score
Price KES32.30
GF Value KES16.01
Valuation Significantly Overvalued
! 5 Warning Signs
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What is ABSA Bank Kenya Beneish M-Score?

ABSA Bank Kenya NAI:ABSA +0.31% 75 Beneish M-Score is -2.25 as of Jun. 26, 2026. GuruFocus rates NAI:ABSA with a GF Score™ of 75/100 and a GF Value™ of KES16.01 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,397 Banks companies, ABSA Bank Kenya ranks worse than 74.8% 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAI:ABSA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.6   Med: -2.43   Max: -2.13
Current: -2.25

During the past 13 years, the highest Beneish M-Score of ABSA Bank Kenya was -2.13. The lowest was -2.60. And the median was -2.43.

NAI:ABSA
75GF Score
ABSA Bank Kenya PLC NAI:ABSA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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ABSA Bank Kenya 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 ABSA Bank Kenya 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 * 1.0008+0.892 * 0.9843+0.115 * 0.9324
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1849+4.679 * 0.046458-0.327 * 0.7981
=-2.25

* 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 KES0 Mil.
Revenue was KES60,030 Mil.
Gross Profit was KES60,030 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES537,648 Mil.
Property, Plant and Equipment(Net PPE) was KES2,667 Mil.
Depreciation, Depletion and Amortization(DDA) was KES1,161 Mil.
Selling, General, & Admin. Expense(SGA) was KES1,683 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES18,099 Mil.
Net Income was KES22,905 Mil.
Gross Profit was KES0 Mil.
Cash Flow from Operations was KES-2,073 Mil.
 Total Receivables was KES0 Mil.
Revenue was KES60,986 Mil.
Gross Profit was KES60,986 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES506,476 Mil.
Property, Plant and Equipment(Net PPE) was KES2,914 Mil.
Depreciation, Depletion and Amortization(DDA) was KES1,149 Mil.
Selling, General, & Admin. Expense(SGA) was KES1,443 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES21,363 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 / 60030) / (0 / 60986)
=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)
=(60986 / 60986) / (60030 / 60030)
=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 + 2667) / 537648) / (1 - (0 + 2914) / 506476)
=0.99504 / 0.994247
=1.0008

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
=60030 / 60986
=0.9843

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))
=(1149 / (1149 + 2914)) / (1161 / (1161 + 2667))
=0.282796 / 0.303292
=0.9324

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)
=(1683 / 60030) / (1443 / 60986)
=0.028036 / 0.023661
=1.1849

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)
=((18099 + 0) / 537648) / ((21363 + 0) / 506476)
=0.033663 / 0.04218
=0.7981

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
=(22905 - 0 - -2073) / 537648
=0.046458

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.

ABSA Bank Kenya has a M-score of -2.25 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 -2.25 mean?
ABSA Bank Kenya (NAI:ABSA) has a Beneish M-Score of -2.25 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on ABSA Bank Kenya and its competitors. According to the industry distribution chart, ABSA Bank Kenya ranks #1045 out of 1397 companies in the Banks industry, placing it in the top 74.8%.
Is ABSA Bank Kenya's Beneish M-Score too high?
ABSA Bank Kenya's current Beneish M-Score is -2.25. Based on the distribution chart, ABSA Bank Kenya ranks #1045 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, ABSA Bank Kenya has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABSA Bank Kenya's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, ABSA Bank Kenya ranks #1045 out of 1397 companies for Beneish M-Score. This places ABSA Bank Kenya 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 ABSA Bank Kenya and its competitors. ABSA Bank Kenya's current Beneish M-Score is -2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABSA Bank Kenya stock overvalued right now?
Based on GuruFocus' analysis, ABSA Bank Kenya (NAI:ABSA) is currently considered Significantly Overvalued. The stock's GF Value™ is KES16.01, compared to a current price of KES32.30 — trading 101.7% above its estimated fair value. The current Beneish M-Score is -2.25. ABSA Bank Kenya's overall GF Score™ is 75/100 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 ABSA Bank Kenya (NAI:ABSA), the current Beneish M-Score is -2.25 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.

Is ABSA Bank Kenya (NAI:ABSA) Overvalued in 2026?

Based on GuruFocus' analysis, ABSA Bank Kenya stock appears to be overvalued. The current stock price of KES32.30 is trading 101.7% above its estimated GF Value™ of KES16.01. GuruFocus considers ABSA Bank Kenya to be Significantly Overvalued.

Key valuation signals for NAI:ABSA:

  • Beneish M-Score: -2.25
  • GF Value™: KES16.01 vs. price of KES32.30 (101.7% above fair value)
  • GF Score™: 75/100 with 5 warning signs

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

ABSA Bank Kenya Business Description

Address Waiyaki Way, P.O. Box 30120, Nairobi, KEN, 00100
ABSA Bank Kenya PLC is a diversified financial services company offering clients a range of retail, business, corporate and investment, and wealth management solutions. The company's operating segment includes Consumer banking and Corporate banking. It generates maximum revenue from the Consumer Banking segment. The Consumer Banking segment incorporates private customer current accounts, savings, deposits, credit and debit cards, consumer loans, and mortgages. Its Corporate Banking segment includes the business model that centers on delivering specialist investment banking, financing, risk management, and advisory solutions across asset classes to corporates, financial institutions and government clients.
75GF Score

Get the complete analysis for NAI:ABSA

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

KES32.30
Price
KES16.01
GF Value