Liberty Kenya Holdings (NAI:LBTY) Beneish M-Score: -2.75 (As of Aug. 21, 2026)

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NAI:LBTY Liberty Kenya Holdings Ltd NAI:LBTY
69 GF Score
Price KES9.18
GF Value KES8.66
Valuation Fairly Valued
! 5 Warning Signs
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What is Liberty Kenya Holdings Beneish M-Score?

Liberty Kenya Holdings NAI:LBTY -3.37% 69 Beneish M-Score is -2.75 as of Aug. 21, 2026. GuruFocus rates NAI:LBTY with a GF Score™ of 69/100 and a GF Value™ of KES8.66 (Fairly Valued). The stock has 5 warning signs investors should review. Among 403 Insurance companies, Liberty Kenya Holdings ranks better than 75.19% 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAI:LBTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.82   Med: -2.64   Max: 5.79
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Liberty Kenya Holdings was 5.79. The lowest was -3.82. And the median was -2.64.

NAI:LBTY
69GF Score
Liberty Kenya Holdings Ltd NAI:LBTY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Liberty Kenya 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 Liberty Kenya 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 * 0.7815+0.528 * 1+0.404 * 0.9994+0.892 * 0.9868+0.115 * 0.9454
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.016261-0.327 * 1.4
=-2.75

* 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 KES472 Mil.
Revenue was KES17,075 Mil.
Gross Profit was KES17,075 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES46,306 Mil.
Property, Plant and Equipment(Net PPE) was KES1,387 Mil.
Depreciation, Depletion and Amortization(DDA) was KES205 Mil.
Selling, General, & Admin. Expense(SGA) was KES0 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES35 Mil.
Net Income was KES456 Mil.
Gross Profit was KES7 Mil.
Cash Flow from Operations was KES-304 Mil.
 Total Receivables was KES612 Mil.
Revenue was KES17,303 Mil.
Gross Profit was KES17,303 Mil.
Total Current Assets was KES0 Mil.
Total Assets was KES48,149 Mil.
Property, Plant and Equipment(Net PPE) was KES1,414 Mil.
Depreciation, Depletion and Amortization(DDA) was KES196 Mil.
Selling, General, & Admin. Expense(SGA) was KES0 Mil.
Total Current Liabilities was KES0 Mil.
Long-Term Debt & Capital Lease Obligation was KES26 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)
=(472 / 17075) / (612 / 17303)
=0.027643 / 0.03537
=0.7815

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)
=(17303 / 17303) / (17075 / 17075)
=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 + 1387) / 46306) / (1 - (0 + 1414) / 48149)
=0.970047 / 0.970633
=0.9994

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
=17075 / 17303
=0.9868

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))
=(196 / (196 + 1414)) / (205 / (205 + 1387))
=0.121739 / 0.128769
=0.9454

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 / 17075) / (0 / 17303)
=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)
=((35 + 0) / 46306) / ((26 + 0) / 48149)
=0.000756 / 0.00054
=1.4

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
=(456 - 7 - -304) / 46306
=0.016261

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.

Liberty Kenya Holdings has a M-score of -2.75 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 -2.75 mean?
Liberty Kenya Holdings (NAI:LBTY) has a Beneish M-Score of -2.75 as of Aug. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Liberty Kenya Holdings and its competitors. According to the industry distribution chart, Liberty Kenya Holdings ranks #100 out of 403 companies in the Insurance industry, placing it in the top 24.8%.
Is Liberty Kenya Holdings' Beneish M-Score too high?
Liberty Kenya Holdings' current Beneish M-Score is -2.75. Based on the distribution chart, Liberty Kenya Holdings ranks #100 out of 403 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Liberty Kenya Holdings has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Liberty Kenya Holdings' Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Liberty Kenya Holdings ranks #100 out of 403 companies for Beneish M-Score. This places Liberty Kenya Holdings in the top 25% of its industry — outperforming the majority of peers. 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 Insurance company?
A good Beneish M-Score depends on the Insurance 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 Liberty Kenya Holdings and its competitors. Liberty Kenya Holdings's current Beneish M-Score is -2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liberty Kenya Holdings stock overvalued right now?
Based on GuruFocus' analysis, Liberty Kenya Holdings (NAI:LBTY) is currently considered Fairly Valued. The stock's GF Value™ is KES8.66, compared to a current price of KES9.18 — trading 6% above its estimated fair value. The current Beneish M-Score is -2.75. Liberty Kenya Holdings' overall GF Score™ is 69/100 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 Liberty Kenya Holdings (NAI:LBTY), the current Beneish M-Score is -2.75 as of Aug. 21, 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 Liberty Kenya Holdings (NAI:LBTY) Overvalued in 2026?

Based on GuruFocus' analysis, Liberty Kenya Holdings stock appears to be overvalued. The current stock price of KES9.18 is trading 6% above its estimated GF Value™ of KES8.66. GuruFocus considers Liberty Kenya Holdings to be Fairly Valued.

Key valuation signals for NAI:LBTY:

  • Beneish M-Score: -2.75
  • GF Value™: KES8.66 vs. price of KES9.18 (6% above fair value)
  • GF Score™: 69/100 with 5 warning signs

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

Liberty Kenya Holdings Business Description

Address Mamlaka Road, Processional Way, P. O. Box 43963, Liberty House, Nairobi, KEN, 00100
Liberty Kenya Holdings Ltd is an insurance company. It offers long-term insurance products, financial products, and services to the retail and corporate markets. Its products include life insurance, health insurance, and short-term insurance. The group is organized into segments are Long-term business, General businesses, and Holding company. The company generates maximum of its revenue from General business segment.
69GF Score

Get the complete analysis for NAI:LBTY

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

KES9.18
Price
KES8.66
GF Value