Arco Vara AS (OTSE:ARC1T) Beneish M-Score: 19.18 (As of Jun. 28, 2026)


What is Arco Vara AS Beneish M-Score?

Arco Vara AS OTSE:ARC1T -0.82% Beneish M-Score is 19.18 as of Jun. 28, 2026. The stock has 8 warning signs investors should review. Among 1,682 Real Estate companies, Arco Vara AS ranks worse than 98.63% on this metric.

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 19.18 higher than -1.78, which implies that the company might have manipulated its financial results.

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

OTSE:ARC1T' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74   Med: -0.8   Max: 37.67
Current: 19.18

During the past 13 years, the highest Beneish M-Score of Arco Vara AS was 37.67. The lowest was -3.74. And the median was -0.80.

Arco Vara AS Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Arco Vara AS's Beneish M-Score can be seen below:

* 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.

Arco Vara AS Beneish M-Score Chart

Arco Vara AS Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.39 -2.40 -1.22 12.61 -1.23

Arco Vara AS Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.33 -0.36 13.61 -1.23 19.18

Arco Vara AS Beneish M-Score Competitor Comparison

For the Real Estate - Development subindustry, Arco Vara AS's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Arco Vara AS Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Arco Vara AS's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arco Vara AS's Beneish M-Score falls into.


Arco Vara AS 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 Arco Vara AS 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 * 22.9345+0.528 * 1.2005+0.404 * 0.4618+0.892 * 0.7774+0.115 * 0.905
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4102+4.679 * 0.409871-0.327 * 1.1287
=19.18

* 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 €0.84 Mil.
Revenue was 0.391 + 2.06 + 2.531 + 1.387 = €6.37 Mil.
Gross Profit was 0.065 + 0.284 + 0.647 + 0.426 = €1.42 Mil.
Total Current Assets was €88.82 Mil.
Total Assets was €91.70 Mil.
Property, Plant and Equipment(Net PPE) was €0.53 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.09 Mil.
Selling, General, & Admin. Expense(SGA) was €0.91 Mil.
Total Current Liabilities was €15.24 Mil.
Long-Term Debt & Capital Lease Obligation was €40.20 Mil.
Net Income was -0.578 + -0.692 + 0.256 + -0.146 = €-1.16 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was -3.524 + -3.754 + -0.615 + -30.853 = €-38.75 Mil.
 Total Receivables was €0.05 Mil.
Revenue was 1.706 + 3.39 + 2.154 + 0.943 = €8.19 Mil.
Gross Profit was 0.598 + 0.534 + 0.68 + 0.384 = €2.20 Mil.
Total Current Assets was €39.75 Mil.
Total Assets was €42.73 Mil.
Property, Plant and Equipment(Net PPE) was €0.61 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.09 Mil.
Selling, General, & Admin. Expense(SGA) was €0.83 Mil.
Total Current Liabilities was €6.55 Mil.
Long-Term Debt & Capital Lease Obligation was €16.33 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)
=(0.838 / 6.369) / (0.047 / 8.193)
=0.131575 / 0.005737
=22.9345

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)
=(2.196 / 8.193) / (1.422 / 6.369)
=0.268034 / 0.223269
=1.2005

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 - (88.819 + 0.533) / 91.702) / (1 - (39.752 + 0.605) / 42.728)
=0.025626 / 0.055491
=0.4618

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
=6.369 / 8.193
=0.7774

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))
=(0.09 / (0.09 + 0.605)) / (0.089 / (0.089 + 0.533))
=0.129496 / 0.143087
=0.905

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)
=(0.911 / 6.369) / (0.831 / 8.193)
=0.143037 / 0.101428
=1.4102

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)
=((40.201 + 15.238) / 91.702) / ((16.333 + 6.553) / 42.728)
=0.604556 / 0.535621
=1.1287

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
=(-1.16 - 0 - -38.746) / 91.702
=0.409871

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.

Arco Vara AS has a M-score of 19.18 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 19.18 mean?
Arco Vara AS (OTSE:ARC1T) has a Beneish M-Score of 19.18 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arco Vara AS and its competitors. According to the industry distribution chart, Arco Vara AS ranks #1659 out of 1682 companies in the Real Estate industry, placing it in the top 98.6%.
Is Arco Vara AS's Beneish M-Score too high?
Arco Vara AS's current Beneish M-Score is 19.18. Based on the distribution chart, Arco Vara AS ranks #1659 out of 1682 companies in the Real Estate industry, which is in the bottom quartile relative to peers.
How does Arco Vara AS's Beneish M-Score compare to competitors?
According to the Real Estate industry distribution chart, Arco Vara AS ranks #1659 out of 1682 companies for Beneish M-Score. This places Arco Vara AS 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 Real Estate company?
A good Beneish M-Score depends on the Real Estate 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 Arco Vara AS and its competitors. Arco Vara AS's current Beneish M-Score is 19.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arco Vara AS stock overvalued right now?
Based on GuruFocus' analysis, Arco Vara AS (OTSE:ARC1T) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.71, compared to a current price of €1.22 — trading 71.1% above its estimated fair value. The current Beneish M-Score is 19.18. 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 Arco Vara AS (OTSE:ARC1T), the current Beneish M-Score is 19.18 as of Jun. 28, 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.

Arco Vara AS Business Description

Other Exchanges AV1:Germany
Address Rotermanni street 10, Tallinn, EST, 10111
Arco Vara AS is a real estate group in the Baltic States. The group is engaged in real estate development and services related to real estate. The main activity of the group is the development of complete living environments and related commercial real estate. In the development of the living environment, the completed homes are sold to the final consumer. The focus of the group is on the development of residential real estate. The company operates in three main reportable segments are Bulgarian Development, Estonian Development, and Estonian Construction and generates key revenue from the Estonian Development segment.