REE (REE Automotive) Beneish M-Score: 1.54 (As of Jun. 25, 2026) — Near Median


REE REE Automotive Ltd REE
37 GF Score
Price $0.21
GF Value $2.75
Valuation Possible Value Trap
! 8 Warning Signs
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What is REE Automotive Beneish M-Score?

REE Automotive REE -4.43% 37 Beneish M-Score is 1.54 as of Jun. 25, 2026, which is at its 10-year median of 1.54. GuruFocus rates REE with a GF Score™ of 37/100 and a GF Value™ of $2.75 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,273 Vehicles & Parts companies, REE Automotive ranks worse than 97.8% 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 1.54 higher than -1.78, which implies that the company might have manipulated its financial results.

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

REE' s Beneish M-Score Range Over the Past 10 Years
Min: -0.19   Med: 1.54   Max: 202.99
Current: 1.54

During the past 7 years, the highest Beneish M-Score of REE Automotive was 202.99. The lowest was -0.19. And the median was 1.54.

REE Automotive Beneish M-Score Historical Data

* Premium members only.

The historical data trend for REE Automotive'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.

REE Automotive Beneish M-Score Chart

REE Automotive Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 202.99 0.00 0.00 -0.19 1.54

REE Automotive Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -0.62 -0.19 7.39 1.54

REE vs INEO, WKSP, GTEC: Beneish M-Score Comparison

For the Auto Parts subindustry, REE Automotive'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.

REE Automotive Beneish M-Score vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's Beneish M-Score distribution charts can be found below:

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


REE
37GF Score
REE Automotive Ltd REE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

REE Automotive 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 REE Automotive 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 * 0.0397+0.528 * 1.5234+0.404 * 2.6555+0.892 * 7.0874+0.115 * 0.4984
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1078+4.679 * -0.300595-0.327 * 1.5001
=1.54

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $0.44 Mil.
Revenue was $1.30 Mil.
Gross Profit was $-16.27 Mil.
Total Current Assets was $14.96 Mil.
Total Assets was $38.18 Mil.
Property, Plant and Equipment(Net PPE) was $18.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.09 Mil.
Selling, General, & Admin. Expense(SGA) was $19.99 Mil.
Total Current Liabilities was $12.71 Mil.
Long-Term Debt & Capital Lease Obligation was $15.52 Mil.
Net Income was $-55.81 Mil.
Gross Profit was $24.38 Mil.
Cash Flow from Operations was $-68.71 Mil.
 Total Receivables was $1.55 Mil.
Revenue was $0.18 Mil.
Gross Profit was $-3.50 Mil.
Total Current Assets was $82.51 Mil.
Total Assets was $130.28 Mil.
Property, Plant and Equipment(Net PPE) was $42.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.18 Mil.
Selling, General, & Admin. Expense(SGA) was $26.17 Mil.
Total Current Liabilities was $36.18 Mil.
Long-Term Debt & Capital Lease Obligation was $28.04 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)
=(0.435 / 1.297) / (1.545 / 0.183)
=0.335389 / 8.442623
=0.0397

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)
=(-3.498 / 0.183) / (-16.274 / 1.297)
=-19.114754 / -12.547417
=1.5234

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 - (14.961 + 18.861) / 38.181) / (1 - (82.506 + 42.173) / 130.28)
=0.114167 / 0.042992
=2.6555

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
=1.297 / 0.183
=7.0874

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))
=(3.182 / (3.182 + 42.173)) / (3.09 / (3.09 + 18.861))
=0.070158 / 0.140768
=0.4984

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)
=(19.988 / 1.297) / (26.171 / 0.183)
=15.410948 / 143.010929
=0.1078

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)
=((15.524 + 12.71) / 38.181) / ((28.037 + 36.183) / 130.28)
=0.739478 / 0.492938
=1.5001

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
=(-55.807 - 24.38 - -68.71) / 38.181
=-0.300595

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.

REE Automotive has a M-score of 1.54 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 1.54 mean?
REE Automotive (REE) has a Beneish M-Score of 1.54 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on REE Automotive and its competitors. This is near median its historical median of 1.54. According to the industry distribution chart, REE Automotive ranks #1245 out of 1273 companies in the Vehicles & Parts industry, placing it in the top 97.8%.
Is REE Automotive's Beneish M-Score too high?
REE Automotive's current Beneish M-Score of 1.54 is near median its 10-year median of 1.54. Based on the distribution chart, REE Automotive ranks #1245 out of 1273 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, REE Automotive has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does REE Automotive's Beneish M-Score compare to INEO and WKSP?
According to the Vehicles & Parts industry distribution chart, REE Automotive ranks #1245 out of 1273 companies for Beneish M-Score. This places REE Automotive 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 Vehicles & Parts company?
A good Beneish M-Score depends on the Vehicles & Parts 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 REE Automotive and its competitors. REE Automotive's current Beneish M-Score is 1.54, which is near median its own 10-year median of 1.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REE) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.21 — trading 92.2% below its estimated fair value. The current Beneish M-Score is 1.54, which is near median its 10-year median of 1.54. REE Automotive's overall GF Score™ is 37/100 with 8 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 REE Automotive (REE), the current Beneish M-Score is 1.54 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 REE Automotive (REE) Overvalued in 2026?

Based on GuruFocus' analysis, REE Automotive stock appears to be undervalued. The current stock price of $0.21 is trading 92.2% below its estimated GF Value™ of $2.75. GuruFocus considers REE Automotive to be Possible Value Trap.

Key valuation signals for REE:

  • Beneish M-Score: 1.54 (near median its 10-year median of 1.54)
  • GF Value™: $2.75 vs. price of $0.21 (92.2% below fair value)
  • GF Score™: 37/100 with 8 warning signs

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

REE Automotive Business Description

Address Kibbutz Glil-Yam, Herzliya, ISR, 4690500
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.
37GF Score

Get the complete analysis for REE

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

$0.21
Price
$2.75
GF Value