PEGRF (Pennon Group) Beneish M-Score: -2.53 (As of Jun. 24, 2026)


PEGRF Pennon Group PLC PEGRF
77 GF Score
Price $6.38
GF Value $6.24
Valuation Fairly Valued
! 9 Warning Signs
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What is Pennon Group Beneish M-Score?

Pennon Group PEGRF +4.51% 77 Beneish M-Score is -2.53 as of Jun. 24, 2026. GuruFocus rates PEGRF with a GF Score™ of 77/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 485 Utilities - Regulated companies, Pennon Group ranks worse than 55.46% 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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PEGRF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55   Med: -2.46   Max: -0.64
Current: -2.53

During the past 13 years, the highest Beneish M-Score of Pennon Group was -0.64. The lowest was -3.55. And the median was -2.46.

Pennon Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Pennon Group'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.

Pennon Group Beneish M-Score Chart

Pennon Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.64 -2.73 -2.26 -2.50 -2.53

Pennon Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 -2.26 0.00 -2.50 0.00 -2.53

PEGRF vs AWK, WTRG, AWR: Beneish M-Score Comparison

For the Utilities - Regulated Water subindustry, Pennon Group'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.

Pennon Group Beneish M-Score vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Pennon Group's Beneish M-Score distribution charts can be found below:

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


PEGRF
77GF Score
Pennon Group PLC PEGRF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Pennon Group 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 Pennon Group 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 * 0.9438+0.528 * 0.9808+0.404 * 0.9422+0.892 * 1.2719+0.115 * 1.0431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.035722-0.327 * 1.0258
=-2.49

* 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 $579 Mil.
Revenue was $1,722 Mil.
Gross Profit was $1,669 Mil.
Total Current Assets was $1,169 Mil.
Total Assets was $9,973 Mil.
Property, Plant and Equipment(Net PPE) was $8,397 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $774 Mil.
Long-Term Debt & Capital Lease Obligation was $6,311 Mil.
Net Income was $122 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $478 Mil.
 Total Receivables was $482 Mil.
Revenue was $1,354 Mil.
Gross Profit was $1,287 Mil.
Total Current Assets was $1,164 Mil.
Total Assets was $9,105 Mil.
Property, Plant and Equipment(Net PPE) was $7,547 Mil.
Depreciation, Depletion and Amortization(DDA) was $242 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $770 Mil.
Long-Term Debt & Capital Lease Obligation was $5,535 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)
=(578.8 / 1721.867) / (482.171 / 1353.747)
=0.336147 / 0.356175
=0.9438

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)
=(1286.693 / 1353.747) / (1668.533 / 1721.867)
=0.950468 / 0.969025
=0.9808

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 - (1169.333 + 8396.667) / 9973.333) / (1 - (1163.566 + 7547.158) / 9105.426)
=0.040842 / 0.043348
=0.9422

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
=1721.867 / 1353.747
=1.2719

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))
=(241.602 / (241.602 + 7547.158)) / (257.333 / (257.333 + 8396.667))
=0.031019 / 0.029736
=1.0431

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 / 1721.867) / (0 / 1353.747)
=0 / 0
=1

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)
=((6311.333 + 773.6) / 9973.333) / ((5535.401 + 770.026) / 9105.426)
=0.710388 / 0.692491
=1.0258

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
=(122 - 0 - 478.267) / 9973.333
=-0.035722

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.

Pennon Group has a M-score of -2.49 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 -2.53 mean?
Pennon Group (PEGRF) has a Beneish M-Score of -2.53 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Pennon Group and its competitors. According to the industry distribution chart, Pennon Group ranks #269 out of 485 companies in the Utilities - Regulated industry, placing it in the top 55.5%.
Is Pennon Group's Beneish M-Score too high?
Pennon Group's current Beneish M-Score is -2.53. Based on the distribution chart, Pennon Group ranks #269 out of 485 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Pennon Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Beneish M-Score compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #269 out of 485 companies for Beneish M-Score. This places Pennon Group 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 an Utilities - Regulated company?
A good Beneish M-Score depends on the Utilities - Regulated 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 Pennon Group and its competitors. Pennon Group's current Beneish M-Score is -2.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennon Group stock overvalued right now?
Based on GuruFocus' analysis, Pennon Group (PEGRF) is currently considered Fairly Valued. The stock's GF Value™ is $6.24, compared to a current price of $6.38 — trading 2.2% above its estimated fair value. The current Beneish M-Score is -2.53. Pennon Group's overall GF Score™ is 77/100 with 9 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 Pennon Group (PEGRF), the current Beneish M-Score is -2.53 as of Jun. 24, 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 Pennon Group (PEGRF) Overvalued in 2026?

Based on GuruFocus' analysis, Pennon Group stock appears to be overvalued. The current stock price of $6.38 is trading 2.2% above its estimated GF Value™ of $6.24. GuruFocus considers Pennon Group to be Fairly Valued.

Key valuation signals for PEGRF:

  • Beneish M-Score: -2.53
  • GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
  • GF Score™: 77/100 with 9 warning signs

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

Pennon Group Business Description

Address Rydon Lane, Peninsula House, Exeter, Devon, GBR, EX2 7HR
Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail, and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. The majority of revenue is derived from the water division.
77GF Score

Get the complete analysis for PEGRF

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

$6.38
Price
$6.24
GF Value