Lea Bank AB (OSTO:LEA) Beneish M-Score: -1.06 (As of Jun. 27, 2026)


OSTO:LEA Lea Bank AB OSTO:LEA
5 GF Score
Price kr12.32
! 4 Warning Signs
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What is Lea Bank AB Beneish M-Score?

Lea Bank AB OSTO:LEA 5 Beneish M-Score is -1.06 as of Jun. 27, 2026. GuruFocus rates OSTO:LEA with a GF Score™ of 5/100. The stock has 4 warning signs investors should review. Among 1,397 Banks companies, Lea Bank AB ranks worse than 97.21% 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.

Warning Sign:

Beneish M-Score -1.06 higher than -1.78, which implies that the company might have manipulated its financial results.

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

OSTO:LEA' s Beneish M-Score Range Over the Past 10 Years
Min: -1.06   Med: -1.06   Max: -1.06
Current: -1.06

During the past 4 years, the highest Beneish M-Score of Lea Bank AB was -1.06. The lowest was -1.06. And the median was -1.06.

OSTO:LEA
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Lea Bank AB OSTO:LEA
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Lea Bank AB 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 Lea Bank AB 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 * 1.0008+0.892 * 2.2363+0.115 * -0.1732
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.124+4.679 * 0.126389-0.327 * 1.3633
=-1.06

* 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 188.504 + 180.444 + 175.142 + 157.979 = kr702.1 Mil.
Gross Profit was 188.504 + 180.444 + 175.142 + 157.979 = kr702.1 Mil.
Total Current Assets was kr0.0 Mil.
Total Assets was kr11,147.1 Mil.
Property, Plant and Equipment(Net PPE) was kr10.6 Mil.
Depreciation, Depletion and Amortization(DDA) was kr23.8 Mil.
Selling, General, & Admin. Expense(SGA) was kr182.5 Mil.
Total Current Liabilities was kr0.0 Mil.
Long-Term Debt & Capital Lease Obligation was kr133.5 Mil.
Net Income was 31.372 + 32.383 + 33.315 + 28.348 = kr125.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0.0 Mil.
Cash Flow from Operations was 52.871 + -955.199 + -360.313 + -20.815 = kr-1,283.5 Mil.
 Total Receivables was kr0.0 Mil.
Revenue was 156.108 + 0.098 + -0.008 + 157.742 = kr313.9 Mil.
Gross Profit was 156.108 + 0.098 + -0.008 + 157.742 = kr313.9 Mil.
Total Current Assets was kr0.0 Mil.
Total Assets was kr9,127.6 Mil.
Property, Plant and Equipment(Net PPE) was kr16.4 Mil.
Depreciation, Depletion and Amortization(DDA) was kr-1.8 Mil.
Selling, General, & Admin. Expense(SGA) was kr72.6 Mil.
Total Current Liabilities was kr0.0 Mil.
Long-Term Debt & Capital Lease Obligation was kr80.2 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 / 702.069) / (0 / 313.94)
=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)
=(313.94 / 313.94) / (702.069 / 702.069)
=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 + 10.641) / 11147.146) / (1 - (0 + 16.41) / 9127.587)
=0.999045 / 0.998202
=1.0008

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
=702.069 / 313.94
=2.2363

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))
=(-1.754 / (-1.754 + 16.41)) / (23.794 / (23.794 + 10.641))
=-0.119678 / 0.690983
=-0.1732

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)
=(182.468 / 702.069) / (72.593 / 313.94)
=0.2599 / 0.231232
=1.124

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)
=((133.488 + 0) / 11147.146) / ((80.177 + 0) / 9127.587)
=0.011975 / 0.008784
=1.3633

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
=(125.418 - 0 - -1283.456) / 11147.146
=0.126389

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.

Lea Bank AB has a M-score of -1.06 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.06 mean?
Lea Bank AB (OSTO:LEA) has a Beneish M-Score of -1.06 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lea Bank AB and its competitors. According to the industry distribution chart, Lea Bank AB ranks #1358 out of 1397 companies in the Banks industry, placing it in the top 97.2%.
Is Lea Bank AB's Beneish M-Score too high?
Lea Bank AB's current Beneish M-Score is -1.06. Based on the distribution chart, Lea Bank AB ranks #1358 out of 1397 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Lea Bank AB has a GF Score™ of 5/100, reflecting its overall financial health beyond just this single metric.
How does Lea Bank AB's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Lea Bank AB ranks #1358 out of 1397 companies for Beneish M-Score. This places Lea Bank AB 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 Lea Bank AB and its competitors. Lea Bank AB's current Beneish M-Score is -1.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lea Bank AB stock overvalued right now?
Lea Bank AB (OSTO:LEA) has a current Beneish M-Score of -1.06. The current Beneish M-Score is -1.06. Lea Bank AB's overall GF Score™ is 5/100 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 Lea Bank AB (OSTO:LEA), the current Beneish M-Score is -1.06 as of Jun. 27, 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.

Lea Bank AB Business Description

Address Polhemsplatsen 5, Gothenburg, SWE, 411 11
Lea Bank AB is a digital niche bank. The bank offers unsecured loans and deposit products to the consumer market. The bank has lending operations in Sweden, Norway, Finland, and Spain, and offers deposit products in Sweden, Norway, Finland, Germany, Spain, Austria, and France.
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