Firstrand (NAM:FST) Beneish M-Score: -2.35 (As of Jun. 24, 2026)


NAM:FST Firstrand Ltd NAM:FST
85 GF Score
Price R96.23
GF Value R84.35
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Firstrand Beneish M-Score?

Firstrand NAM:FST -2.80% 85 Beneish M-Score is -2.35 as of Jun. 24, 2026. GuruFocus rates NAM:FST with a GF Score™ of 85/100 and a GF Value™ of R84.35 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,396 Banks companies, Firstrand ranks worse than 58.74% 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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAM:FST' s Beneish M-Score Range Over the Past 10 Years
Min: -7.54   Med: -2.37   Max: -2.08
Current: -2.35

During the past 13 years, the highest Beneish M-Score of Firstrand was -2.08. The lowest was -7.54. And the median was -2.37.

NAM:FST
85GF Score
Firstrand Ltd NAM:FST
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Firstrand 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 Firstrand 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 * 1.0007+0.892 * 1.0504+0.115 * 1.0712
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0258+4.679 * 0.014363-0.327 * 0.9483
=-2.35

* 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 (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was R0 Mil.
Revenue was R148,468 Mil.
Gross Profit was R148,468 Mil.
Total Current Assets was R0 Mil.
Total Assets was R2,588,770 Mil.
Property, Plant and Equipment(Net PPE) was R23,650 Mil.
Depreciation, Depletion and Amortization(DDA) was R4,756 Mil.
Selling, General, & Admin. Expense(SGA) was R7,440 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R282,202 Mil.
Net Income was R43,540 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R6,358 Mil.
 Total Receivables was R0 Mil.
Revenue was R141,344 Mil.
Gross Profit was R141,344 Mil.
Total Current Assets was R0 Mil.
Total Assets was R2,369,339 Mil.
Property, Plant and Equipment(Net PPE) was R23,326 Mil.
Depreciation, Depletion and Amortization(DDA) was R5,098 Mil.
Selling, General, & Admin. Expense(SGA) was R6,905 Mil.
Total Current Liabilities was R0 Mil.
Long-Term Debt & Capital Lease Obligation was R272,372 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 / 148468) / (0 / 141344)
=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)
=(141344 / 141344) / (148468 / 148468)
=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 + 23650) / 2588770) / (1 - (0 + 23326) / 2369339)
=0.990864 / 0.990155
=1.0007

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
=148468 / 141344
=1.0504

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))
=(5098 / (5098 + 23326)) / (4756 / (4756 + 23650))
=0.179355 / 0.167429
=1.0712

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)
=(7440 / 148468) / (6905 / 141344)
=0.050112 / 0.048852
=1.0258

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)
=((282202 + 0) / 2588770) / ((272372 + 0) / 2369339)
=0.10901 / 0.114957
=0.9483

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
=(43540 - 0 - 6358) / 2588770
=0.014363

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.

Firstrand has a M-score of -2.35 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 -2.35 mean?
Firstrand (NAM:FST) has a Beneish M-Score of -2.35 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Firstrand and its competitors. According to the industry distribution chart, Firstrand ranks #820 out of 1396 companies in the Banks industry, placing it in the top 58.7%.
Is Firstrand's Beneish M-Score too high?
Firstrand's current Beneish M-Score is -2.35. Based on the distribution chart, Firstrand ranks #820 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Firstrand has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Firstrand's Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, Firstrand ranks #820 out of 1396 companies for Beneish M-Score. This places Firstrand 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 Firstrand and its competitors. Firstrand's current Beneish M-Score is -2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstrand stock overvalued right now?
Based on GuruFocus' analysis, Firstrand (NAM:FST) is currently considered Modestly Overvalued. The stock's GF Value™ is R84.35, compared to a current price of R96.23 — trading 14.1% above its estimated fair value. The current Beneish M-Score is -2.35. Firstrand's overall GF Score™ is 85/100 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 Firstrand (NAM:FST), the current Beneish M-Score is -2.35 as of Jun. 24, 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 Firstrand (NAM:FST) Overvalued in 2026?

Based on GuruFocus' analysis, Firstrand stock appears to be overvalued. The current stock price of R96.23 is trading 14.1% above its estimated GF Value™ of R84.35. GuruFocus considers Firstrand to be Modestly Overvalued.

Key valuation signals for NAM:FST:

  • Beneish M-Score: -2.35
  • GF Value™: R84.35 vs. price of R96.23 (14.1% above fair value)
  • GF Score™: 85/100 with 4 warning signs

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

Firstrand Business Description

Address Corner Fredman Drive and Rivonia Road, 4 Merchant Place, C Low, Sandton, Johannesburg, GT, ZAF, 2196
Firstrand Ltd wholly owns FirstRand Bank, a full-service bank providing a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products. The bank has three divisions, which are separately branded: First National Bank (FNB), WesBank and Rand Merchant Bank (RMB). The firm's reportable segment includes Retail and commercial segment, Corporate and institutional segment, Centre (including group treasury), Firstrand Bank Normalised, and Normalised adjustments.
85GF Score

Get the complete analysis for NAM:FST

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

R96.23
Price
R84.35
GF Value