Zenith Bank (NSA:ZENITH) Beneish M-Score: -2.87 (As of Jun. 29, 2026)


NSA:ZENITH Zenith Bank PLC NSA:ZENITH
84 GF Score
Price ₦113.50
GF Value ₦60.17
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Zenith Bank Beneish M-Score?

Zenith Bank NSA:ZENITH -1.26% 84 Beneish M-Score is -2.87 as of Jun. 29, 2026. GuruFocus rates NSA:ZENITH with a GF Score™ of 84/100 and a GF Value™ of ₦60.17 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,399 Banks companies, Zenith Bank ranks better than 90.99% 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSA:ZENITH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.3   Max: -0.96
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Zenith Bank was -0.96. The lowest was -2.94. And the median was -2.30.

NSA:ZENITH
84GF Score
Zenith Bank PLC NSA:ZENITH
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Zenith Bank 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 Zenith Bank 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 * 0.9982+0.892 * 1.0522+0.115 * 0.8725
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9076+4.679 * -0.136026-0.327 * 0.3875
=-2.87

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₦0 Mil.
Revenue was 709513 + 612700 + 468977 + 1276300 = ₦3,067,490 Mil.
Gross Profit was 709513 + 612700 + 468977 + 1276300 = ₦3,067,490 Mil.
Total Current Assets was ₦0 Mil.
Total Assets was ₦32,012,207 Mil.
Property, Plant and Equipment(Net PPE) was ₦403,248 Mil.
Depreciation, Depletion and Amortization(DDA) was ₦78,852 Mil.
Selling, General, & Admin. Expense(SGA) was ₦90,827 Mil.
Total Current Liabilities was ₦0 Mil.
Long-Term Debt & Capital Lease Obligation was ₦515,907 Mil.
Net Income was 313724 + 275890 + 231676 + 220187 = ₦1,041,477 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₦0 Mil.
Cash Flow from Operations was 3772060 + 832883 + -186563 + 977599 = ₦5,395,979 Mil.
 Total Receivables was ₦0 Mil.
Revenue was 672971 + 690786 + 530499 + 1021071 = ₦2,915,327 Mil.
Gross Profit was 672971 + 690786 + 530499 + 1021071 = ₦2,915,327 Mil.
Total Current Assets was ₦0 Mil.
Total Assets was ₦32,415,395 Mil.
Property, Plant and Equipment(Net PPE) was ₦351,552 Mil.
Depreciation, Depletion and Amortization(DDA) was ₦58,521 Mil.
Selling, General, & Admin. Expense(SGA) was ₦95,109 Mil.
Total Current Liabilities was ₦0 Mil.
Long-Term Debt & Capital Lease Obligation was ₦1,348,000 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 / 3067490) / (0 / 2915327)
=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)
=(2915327 / 2915327) / (3067490 / 3067490)
=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 + 403248) / 32012207) / (1 - (0 + 351552) / 32415395)
=0.987403 / 0.989155
=0.9982

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
=3067490 / 2915327
=1.0522

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))
=(58521 / (58521 + 351552)) / (78852 / (78852 + 403248))
=0.142709 / 0.163559
=0.8725

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)
=(90827 / 3067490) / (95109 / 2915327)
=0.02961 / 0.032624
=0.9076

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)
=((515907 + 0) / 32012207) / ((1348000 + 0) / 32415395)
=0.016116 / 0.041585
=0.3875

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
=(1041477 - 0 - 5395979) / 32012207
=-0.136026

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.

Zenith Bank has a M-score of -2.87 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 -2.87 mean?
Zenith Bank (NSA:ZENITH) has a Beneish M-Score of -2.87 as of Jun. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zenith Bank and its competitors. According to the industry distribution chart, Zenith Bank ranks #126 out of 1399 companies in the Banks industry, placing it in the top 9%.
Is Zenith Bank's Beneish M-Score too high?
Zenith Bank's current Beneish M-Score is -2.87. Based on the distribution chart, Zenith Bank ranks #126 out of 1399 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Zenith Bank has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenith Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Zenith Bank ranks #126 out of 1399 companies for Beneish M-Score. This places Zenith Bank in the top 9% 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 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 Zenith Bank and its competitors. Zenith Bank's current Beneish M-Score is -2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Bank stock overvalued right now?
Based on GuruFocus' analysis, Zenith Bank (NSA:ZENITH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦60.17, compared to a current price of ₦113.50 — trading 88.6% above its estimated fair value. The current Beneish M-Score is -2.87. Zenith Bank's overall GF Score™ is 84/100 with 1 warning sign 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 Zenith Bank (NSA:ZENITH), the current Beneish M-Score is -2.87 as of Jun. 29, 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 Zenith Bank (NSA:ZENITH) Overvalued in 2026?

Based on GuruFocus' analysis, Zenith Bank stock appears to be overvalued. The current stock price of ₦113.50 is trading 88.6% above its estimated GF Value™ of ₦60.17. GuruFocus considers Zenith Bank to be Significantly Overvalued.

Key valuation signals for NSA:ZENITH:

  • Beneish M-Score: -2.87
  • GF Value™: ₦60.17 vs. price of ₦113.50 (88.6% above fair value)
  • GF Score™: 84/100 with 1 warning sign

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

Zenith Bank Business Description

Address Plot 84/87, Ajose Adeogun Street, Zenith Heights, Victoria Island, Lagos, NGA
Zenith Bank PLC is a Nigeria- based company. Its core business is the provision of banking and other financial services to corporate and individual customers. The bank provides services such as granting of loans and advances, corporate finance and money market activities. It also provides banking and pension custodial services to a diverse group of corporations, financial institutions, investment funds, governments and individuals; provision of investment advisory, financial planning services and investment product offerings; providing brokerage services, financing services and securities lending services to institutional clients, including mutual funds, pension funds and to high-net-worth individuals. Revenue generated by bank consists of interest income, fees and commission received.
84GF Score

Get the complete analysis for NSA:ZENITH

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

₦113.50
Price
₦60.17
GF Value