Equity Group Holdings (NAI:EQTY) Beneish M-Score: -2.38 (As of Jun. 28, 2026)


NAI:EQTY Equity Group Holdings Ltd NAI:EQTY
87 GF Score
Price KES79.75
GF Value KES56.31
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Equity Group Holdings Beneish M-Score?

Equity Group Holdings NAI:EQTY +0.95% 87 Beneish M-Score is -2.38 as of Jun. 28, 2026. GuruFocus rates NAI:EQTY with a GF Score™ of 87/100 and a GF Value™ of KES56.31 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,399 Banks companies, Equity Group Holdings ranks worse than 53.18% 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAI:EQTY' s Beneish M-Score Range Over the Past 10 Years
Min: -12.21   Med: -2.67   Max: -2.38
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Equity Group Holdings was -2.38. The lowest was -12.21. And the median was -2.67.

NAI:EQTY
87GF Score
Equity Group Holdings Ltd NAI:EQTY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Equity Group Holdings 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 Equity Group Holdings 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 * 1.0004+0.892 * 1.0966+0.115 * 0.9117
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7764+4.679 * -0.000212-0.327 * 1.044
=-2.38

* 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 KES202,187 Mil.
Gross Profit was KES202,187 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES1,970,991 Mil.
Property, Plant and Equipment(Net PPE) was KES35,407 Mil.
Depreciation, Depletion and Amortization(DDA) was KES9,777 Mil.
Selling, General, & Admin. Expense(SGA) was KES42,055 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES95,398 Mil.
Net Income was KES71,964 Mil.
Gross Profit was KES0 Mil.
Cash Flow from Operations was KES72,381 Mil.
 Total Receivables was KES0 Mil.
Revenue was KES184,370 Mil.
Gross Profit was KES184,370 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES1,804,626 Mil.
Property, Plant and Equipment(Net PPE) was KES33,168 Mil.
Depreciation, Depletion and Amortization(DDA) was KES8,151 Mil.
Selling, General, & Admin. Expense(SGA) was KES49,396 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES83,664 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 / 202187) / (0 / 184370)
=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)
=(184370 / 184370) / (202187 / 202187)
=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 + 35407) / 1970991) / (1 - (0 + 33168) / 1804626)
=0.982036 / 0.981621
=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
=202187 / 184370
=1.0966

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))
=(8151 / (8151 + 33168)) / (9777 / (9777 + 35407))
=0.19727 / 0.216382
=0.9117

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)
=(42055 / 202187) / (49396 / 184370)
=0.208001 / 0.267918
=0.7764

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)
=((95398 + 0) / 1970991) / ((83664 + 0) / 1804626)
=0.048401 / 0.046361
=1.044

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
=(71964 - 0 - 72381) / 1970991
=-0.000212

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.

Equity Group Holdings has a M-score of -2.38 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 -2.38 mean?
Equity Group Holdings (NAI:EQTY) has a Beneish M-Score of -2.38 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Equity Group Holdings and its competitors. According to the industry distribution chart, Equity Group Holdings ranks #744 out of 1399 companies in the Banks industry, placing it in the top 53.2%.
Is Equity Group Holdings' Beneish M-Score too high?
Equity Group Holdings' current Beneish M-Score is -2.38. Based on the distribution chart, Equity Group Holdings ranks #744 out of 1399 companies in the Banks industry, which is below the industry midpoint. Overall, Equity Group Holdings has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Equity Group Holdings' Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Equity Group Holdings ranks #744 out of 1399 companies for Beneish M-Score. This places Equity Group Holdings 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 Equity Group Holdings and its competitors. Equity Group Holdings's current Beneish M-Score is -2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Equity Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Equity Group Holdings (NAI:EQTY) is currently considered Significantly Overvalued. The stock's GF Value™ is KES56.31, compared to a current price of KES79.75 — trading 41.6% above its estimated fair value. The current Beneish M-Score is -2.38. Equity Group Holdings' overall GF Score™ is 87/100 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 Equity Group Holdings (NAI:EQTY), the current Beneish M-Score is -2.38 as of Jun. 28, 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 Equity Group Holdings (NAI:EQTY) Overvalued in 2026?

Based on GuruFocus' analysis, Equity Group Holdings stock appears to be overvalued. The current stock price of KES79.75 is trading 41.6% above its estimated GF Value™ of KES56.31. GuruFocus considers Equity Group Holdings to be Significantly Overvalued.

Key valuation signals for NAI:EQTY:

  • Beneish M-Score: -2.38
  • GF Value™: KES56.31 vs. price of KES79.75 (41.6% above fair value)
  • GF Score™: 87/100 with 5 warning signs

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

Equity Group Holdings Business Description

Address Hospital Road, Upper Hill, 9th Floor, P.O.Box 75104, Equity Centre, Nairobi, KEN, 00200
Equity Group Holdings Ltd offers banking and financial services in Kenya. The company offers retail banking, microfinance, and related services. It operates in six geographical markets: Kenya, Uganda, South Sudan, Rwanda, Tanzania, and the Democratic Republic of Congo. The consumer business line focuses on salaried customers or customers receiving other regular remittances, such as pensions. The majority of the firm's revenue is derived from Kenya. The firm offers Equity loans, Farm inputs, Mortgage loans, Asset finance loans, Trade finance, Development loans, and Business loans.
87GF Score

Get the complete analysis for NAI:EQTY

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

KES79.75
Price
KES56.31
GF Value