Arion banki hf (OISE:ARION) Beneish M-Score: -2.26 (As of Jun. 25, 2026)


OISE:ARION Arion banki hf OISE:ARION
73 GF Score
Price kr190.50
GF Value kr201.84
Valuation Fairly Valued
! 3 Warning Signs
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What is Arion banki hf Beneish M-Score?

Arion banki hf OISE:ARION -0.26% 73 Beneish M-Score is -2.26 as of Jun. 25, 2026. GuruFocus rates OISE:ARION with a GF Score™ of 73/100 and a GF Value™ of kr201.84 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,396 Banks companies, Arion banki hf ranks worse than 73.28% 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 -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OISE:ARION' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.34   Max: 3.89
Current: -2.26

During the past 12 years, the highest Beneish M-Score of Arion banki hf was 3.89. The lowest was -3.04. And the median was -2.34.

OISE:ARION
73GF Score
Arion banki hf OISE:ARION
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arion banki hf 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 Arion banki hf 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 * 1.0001+0.892 * 1.1072+0.115 * 1.0479
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8749+4.679 * 0.021022-0.327 * 0.9977
=-2.26

* 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 Mil.
Revenue was 19460 + 19026 + 18987 + 21342 = kr78,815 Mil.
Gross Profit was 19460 + 19026 + 18987 + 21342 = kr78,815 Mil.
Total Current Assets was kr0 Mil.
Total Assets was kr1,783,833 Mil.
Property, Plant and Equipment(Net PPE) was kr4,275 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1,618 Mil.
Selling, General, & Admin. Expense(SGA) was kr5,559 Mil.
Total Current Liabilities was kr0 Mil.
Long-Term Debt & Capital Lease Obligation was kr560,471 Mil.
Net Income was 7318 + 6226 + 8229 + 9750 = kr31,523 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0 Mil.
Cash Flow from Operations was -17573 + 28867 + -12243 + -5027 = kr-5,976 Mil.
 Total Receivables was kr0 Mil.
Revenue was 19026 + 17900 + 17418 + 16843 = kr71,187 Mil.
Gross Profit was 19026 + 17900 + 17418 + 16843 = kr71,187 Mil.
Total Current Assets was kr0 Mil.
Total Assets was kr1,686,655 Mil.
Property, Plant and Equipment(Net PPE) was kr4,253 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1,718 Mil.
Selling, General, & Admin. Expense(SGA) was kr5,739 Mil.
Total Current Liabilities was kr0 Mil.
Long-Term Debt & Capital Lease Obligation was kr531,155 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 / 78815) / (0 / 71187)
=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)
=(71187 / 71187) / (78815 / 78815)
=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 + 4275) / 1783833) / (1 - (0 + 4253) / 1686655)
=0.997603 / 0.997478
=1.0001

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
=78815 / 71187
=1.1072

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))
=(1718 / (1718 + 4253)) / (1618 / (1618 + 4275))
=0.287724 / 0.274563
=1.0479

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)
=(5559 / 78815) / (5739 / 71187)
=0.070532 / 0.080619
=0.8749

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)
=((560471 + 0) / 1783833) / ((531155 + 0) / 1686655)
=0.314195 / 0.314916
=0.9977

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
=(31523 - 0 - -5976) / 1783833
=0.021022

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.

Arion banki hf has a M-score of -2.26 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 -2.26 mean?
Arion banki hf (OISE:ARION) has a Beneish M-Score of -2.26 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arion banki hf and its competitors. According to the industry distribution chart, Arion banki hf ranks #1023 out of 1396 companies in the Banks industry, placing it in the top 73.3%.
Is Arion banki hf's Beneish M-Score too high?
Arion banki hf's current Beneish M-Score is -2.26. Based on the distribution chart, Arion banki hf ranks #1023 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Arion banki hf has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arion banki hf's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Arion banki hf ranks #1023 out of 1396 companies for Beneish M-Score. This places Arion banki hf 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 Arion banki hf and its competitors. Arion banki hf's current Beneish M-Score is -2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arion banki hf stock overvalued right now?
Based on GuruFocus' analysis, Arion banki hf (OISE:ARION) is currently considered Fairly Valued. The stock's GF Value™ is kr201.84, compared to a current price of kr190.50 — trading 5.6% below its estimated fair value. The current Beneish M-Score is -2.26. Arion banki hf's overall GF Score™ is 73/100 with 3 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 Arion banki hf (OISE:ARION), the current Beneish M-Score is -2.26 as of Jun. 25, 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 Arion banki hf (OISE:ARION) Overvalued in 2026?

Based on GuruFocus' analysis, Arion banki hf stock appears to be undervalued. The current stock price of kr190.50 is trading 5.6% below its estimated GF Value™ of kr201.84. GuruFocus considers Arion banki hf to be Fairly Valued.

Key valuation signals for OISE:ARION:

  • Beneish M-Score: -2.26
  • GF Value™: kr201.84 vs. price of kr190.50 (5.6% below fair value)
  • GF Score™: 73/100 with 3 warning signs

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

Arion banki hf Business Description

Address Borgartun 19, Reykjavik, ISL, 105
Arion banki hf is a universal relationship bank operating in the Icelandic financial market. Its operating segments are Markets & Stefnir, Corporate & Investment Banking, Retail Banking, Treasury, Other subsidiaries, and Supporting units. The Corporate & Investment Banking segment of the company generates the majority of the revenue and is engaged in providing comprehensive financial services to companies and investors both in Iceland and internationally.
73GF Score

Get the complete analysis for OISE:ARION

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

kr190.50
Price
kr201.84
GF Value