PDFS (PDF Solutions) Beneish M-Score: -2.21 (As of Jun. 25, 2026)

What is PDF Solutions Beneish M-Score?

PDF Solutions PDFS +5.02% 77 Beneish M-Score is -2.21 as of Jun. 25, 2026. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,633 Software companies, PDF Solutions ranks worse than 68.97% 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.

Good Sign:

Beneish M-Score -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PDFS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74 Med: -2.74 Max: -1.57
Current: -2.21

During the past 13 years, the highest Beneish M-Score of PDF Solutions was -1.57. The lowest was -3.74. And the median was -2.74.

PDF Solutions Beneish M-Score Related Terms

PDF Solutions Beneish M-Score Historical Data

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The historical data trend for PDF Solutions'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.

PDF Solutions Beneish M-Score Chart

PDF Solutions Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.81

-3.15

-2.51

-2.03

-2.36

PDF Solutions 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															-1.91	-1.90	-1.57	-2.36	-2.21

PDFS vs SPSC, EVCM, ALKT: Beneish M-Score Comparison

For the Software - Application subindustry, PDF Solutions'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.

PDF Solutions Beneish M-Score vs Software Industry

For the Software industry and Technology sector, PDF Solutions's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PDF Solutions's Beneish M-Score falls into.

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77GF Score

PDF Solutions Inc PDFS

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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PDF Solutions 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 PDF Solutions for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2571

0.528 * 0.9877

0.404 * 0.7655

0.892 * 1.2444

0.115 * 0.8196

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8251

4.679 * -0.022765

0.327 * 0.9652

-2.21

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $114.8 Mil.
Revenue was 60.13 + 62.403 + 57.115 + 51.728 = $231.4 Mil.
Gross Profit was 43.192 + 45.461 + 41.275 + 36.842 = $166.8 Mil.
Total Current Assets was $175.6 Mil.
Total Assets was $430.6 Mil.
Property, Plant and Equipment(Net PPE) was $95.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General, & Admin. Expense(SGA) was $78.9 Mil.
Total Current Liabilities was $75.0 Mil.
Long-Term Debt & Capital Lease Obligation was $67.7 Mil.
Net Income was 4.791 + -0.048 + 1.294 + 1.146 = $7.2 Mil.
Non Operating Income was 0 + 0 + -0.102 + 0 = $-0.1 Mil.
Cash Flow from Operations was 1.674 + 17.341 + 3.287 + -5.215 = $17.1 Mil.

Total Receivables was $73.4 Mil.
Revenue was 47.778 + 50.085 + 46.409 + 41.661 = $185.9 Mil.
Gross Profit was 34.823 + 34.184 + 33.925 + 29.431 = $132.4 Mil.
Total Current Assets was $140.6 Mil.
Total Assets was $390.0 Mil.
Property, Plant and Equipment(Net PPE) was $60.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.7 Mil.
Selling, General, & Admin. Expense(SGA) was $76.8 Mil.
Total Current Liabilities was $64.3 Mil.
Long-Term Debt & Capital Lease Obligation was $69.6 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)
	=	(114.765 / 231.376)	/	(73.362 / 185.933)
	=	0.496011	/	0.394561
	=	1.2571

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)
	=	(132.363 / 185.933)	/	(166.77 / 231.376)
	=	0.711885	/	0.720775
	=	0.9877

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 - (175.644 + 95.069) / 430.564)	/	(1 - (140.625 + 60.225) / 389.972)
	=	0.37126	/	0.484963
	=	0.7655

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
	=	231.376	/	185.933
	=	1.2444

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))
	=	(6.693 / (6.693 + 60.225))	/	(13.215 / (13.215 + 95.069))
	=	0.100018	/	0.12204
	=	0.8196

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)
	=	(78.856 / 231.376)	/	(76.798 / 185.933)
	=	0.340813	/	0.413041
	=	0.8251

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)
	=	((67.689 + 74.967) / 430.564)	/	((69.57 + 64.295) / 389.972)
	=	0.331324	/	0.343268
	=	0.9652

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
	=	(7.183 - -0.102	-	17.087)	/	430.564
	=	-0.022765

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.

PDF Solutions has a M-score of -2.21 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 -2.21 mean?

PDF Solutions (PDFS) has a Beneish M-Score of -2.21 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PDF Solutions and its competitors. According to the industry distribution chart, PDF Solutions ranks #1816 out of 2633 companies in the Software industry, placing it in the top 69%.

Is PDF Solutions' Beneish M-Score too high?

PDF Solutions' current Beneish M-Score is -2.21. Based on the distribution chart, PDF Solutions ranks #1816 out of 2633 companies in the Software industry, which is below the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does PDF Solutions' Beneish M-Score compare to SPSC and EVCM?

According to the Software industry distribution chart, PDF Solutions ranks #1816 out of 2633 companies for Beneish M-Score. This places PDF Solutions 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 Software company?

A good Beneish M-Score depends on the Software 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 PDF Solutions and its competitors. PDF Solutions's current Beneish M-Score is -2.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is PDF Solutions stock overvalued right now?

Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.59, compared to a current price of $63.61 — trading 52.9% above its estimated fair value. The current Beneish M-Score is -2.21. PDF Solutions' overall GF Score™ is 77/100 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 PDF Solutions (PDFS), the current Beneish M-Score is -2.21 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 PDF Solutions (PDFS) Overvalued in 2026?

Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued. The current stock price of $63.61 is trading 52.9% above its estimated GF Value™ of $41.59. GuruFocus considers PDF Solutions to be Significantly Overvalued.

Key valuation signals for PDFS:

Beneish M-Score: -2.21
GF Value™: $41.59 vs. price of $63.61 (52.9% above fair value)
GF Score™: 77/100 with 6 warning signs

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

PDF Solutions Business Description

Industry Technology Software

Comparable Companies SPSC EVCM ALKT PLUS VERX GRND ALRM WLTH INTA ASAN XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges PD9:Germany

Address 2858 De La Cruz Boulevard, Santa Clara, CA, USA, 95050

Website https://www.pdf.com

PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.

77GF Score

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

$63.61

Price

$41.59

GF Value

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