Foroya Banki P/F (OCSE:FOBANK) Beneish M-Score: -2.65 (As of Aug. 04, 2026)

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OCSE:FOBANK Foroya Banki P/F OCSE:FOBANK
38 GF Score
Price kr282.00
GF Value kr165.03
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Foroya Banki P/F Beneish M-Score?

Foroya Banki P/F OCSE:FOBANK -0.88% 38 Beneish M-Score is -2.65 as of Aug. 04, 2026. GuruFocus rates OCSE:FOBANK with a GF Score™ of 38/100 and a GF Value™ of kr165.03 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,391 Banks companies, Foroya Banki P/F ranks better than 83.61% 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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Foroya Banki P/F's Beneish M-Score or its related term are showing as below:

OCSE:FOBANK' s Beneish M-Score Range Over the Past 10 Years
Min: -5.28   Med: -2.64   Max: -0.33
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Foroya Banki P/F was -0.33. The lowest was -5.28. And the median was -2.64.

OCSE:FOBANK
38GF Score
Foroya Banki P/F OCSE:FOBANK
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Foroya Banki P/F 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 Foroya Banki P/F 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 * 1.0006+0.892 * 0.9557+0.115 * 0.9889
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1892+4.679 * -0.011044-0.327 * 1.1283
=-2.65

* 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 kr0.0 Mil.
Revenue was 125.004 + 42.2 + 248.243 + 183.132 = kr598.6 Mil.
Gross Profit was 125.004 + 42.2 + 248.243 + 183.132 = kr598.6 Mil.
Total Current Assets was kr0.0 Mil.
Total Assets was kr15,039.3 Mil.
Property, Plant and Equipment(Net PPE) was kr118.4 Mil.
Depreciation, Depletion and Amortization(DDA) was kr10.0 Mil.
Selling, General, & Admin. Expense(SGA) was kr134.5 Mil.
Total Current Liabilities was kr0.0 Mil.
Long-Term Debt & Capital Lease Obligation was kr1,035.3 Mil.
Net Income was 55.911 + 70.642 + 63.679 + 93.066 = kr283.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.0 Mil.
Cash Flow from Operations was 185.087 + 30.686 + 675.96 + -442.335 = kr449.4 Mil.
 Total Receivables was kr0.0 Mil.
Revenue was 135.489 + 27.708 + 295.61 + 167.519 = kr626.3 Mil.
Gross Profit was 135.489 + 27.708 + 295.61 + 167.519 = kr626.3 Mil.
Total Current Assets was kr0.0 Mil.
Total Assets was kr14,800.5 Mil.
Property, Plant and Equipment(Net PPE) was kr125.1 Mil.
Depreciation, Depletion and Amortization(DDA) was kr10.4 Mil.
Selling, General, & Admin. Expense(SGA) was kr118.4 Mil.
Total Current Liabilities was kr0.0 Mil.
Long-Term Debt & Capital Lease Obligation was kr903.1 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 / 598.579) / (0 / 626.326)
=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)
=(626.326 / 626.326) / (598.579 / 598.579)
=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 + 118.398) / 15039.335) / (1 - (0 + 125.138) / 14800.46)
=0.992127 / 0.991545
=1.0006

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
=598.579 / 626.326
=0.9557

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))
=(10.433 / (10.433 + 125.138)) / (9.991 / (9.991 + 118.398))
=0.076956 / 0.077818
=0.9889

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)
=(134.538 / 598.579) / (118.378 / 626.326)
=0.224762 / 0.189004
=1.1892

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)
=((1035.327 + 0) / 15039.335) / ((903.056 + 0) / 14800.46)
=0.068841 / 0.061015
=1.1283

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
=(283.298 - 0 - 449.398) / 15039.335
=-0.011044

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.

Foroya Banki P/F has a M-score of -2.65 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 -2.65 mean?
Foroya Banki P/F (OCSE:FOBANK) has a Beneish M-Score of -2.65 as of Aug. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Foroya Banki P/F and its competitors. According to the industry distribution chart, Foroya Banki P/F ranks #228 out of 1391 companies in the Banks industry, placing it in the top 16.4%.
Is Foroya Banki P/F's Beneish M-Score too high?
Foroya Banki P/F's current Beneish M-Score is -2.65. Based on the distribution chart, Foroya Banki P/F ranks #228 out of 1391 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Foroya Banki P/F has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Foroya Banki P/F's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Foroya Banki P/F ranks #228 out of 1391 companies for Beneish M-Score. This places Foroya Banki P/F in the top 16% 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 Foroya Banki P/F and its competitors. Foroya Banki P/F's current Beneish M-Score is -2.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Foroya Banki P/F stock overvalued right now?
Based on GuruFocus' analysis, Foroya Banki P/F (OCSE:FOBANK) is currently considered Significantly Overvalued. The stock's GF Value™ is kr165.03, compared to a current price of kr282.00 — trading 70.9% above its estimated fair value. The current Beneish M-Score is -2.65. Foroya Banki P/F's overall GF Score™ is 38/100 with 6 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 Foroya Banki P/F (OCSE:FOBANK), the current Beneish M-Score is -2.65 as of Aug. 04, 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 Foroya Banki P/F (OCSE:FOBANK) Overvalued in 2026?

Based on GuruFocus' analysis, Foroya Banki P/F stock appears to be overvalued. The current stock price of kr282.00 is trading 70.9% above its estimated GF Value™ of kr165.03. GuruFocus considers Foroya Banki P/F to be Significantly Overvalued.

Key valuation signals for OCSE:FOBANK:

  • Beneish M-Score: -2.65
  • GF Value™: kr165.03 vs. price of kr282.00 (70.9% above fair value)
  • GF Score™: 38/100 with 6 warning signs

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

Foroya Banki P/F Business Description

Other Exchanges 0OF2:UKBNW:Germany
Address Oknarvegur 5, P.O. Box 3048, Torshavn, FRO, FO-110
Foroya Banki P/F is a banking company. It provides a range of banking products and financial services to private and corporate customers. Its business units include Banking and Non-life insurance. The Banking unit comprises of Personal Banking and Corporate Banking. Personal Banking comprises private customers in the Faroe Islands and Greenland. Corporate Banking comprises corporate customers mainly in the Faroe Islands and in Greenland. The corporate also comprises a few remaining corporate customers from Denmark. Non-life insurance comprises the insurance company P/F TRYGD based The Faroe Islands. TRYGD is responsible for the-life insurance products. It operates in the Faroe Islands, Denmark and Greenland of which key revenue is derived from the Faroe Islands.
38GF Score

Get the complete analysis for OCSE:FOBANK

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

kr282.00
Price
kr165.03
GF Value