Arab National Bank (SAU:1080) Beneish M-Score: -2.08 (As of Jul. 27, 2026)

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SAU:1080 Arab National Bank SAU:1080
79 GF Score
Price ﷼21.32
GF Value ﷼23.00
Valuation Fairly Valued
! 1 Warning Sign
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What is Arab National Bank Beneish M-Score?

Arab National Bank SAU:1080 -2.38% 79 Beneish M-Score is -2.08 as of Jul. 27, 2026. GuruFocus rates SAU:1080 with a GF Score™ of 79/100 and a GF Value™ of ﷼23.00 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,394 Banks companies, Arab National Bank ranks worse than 87.88% 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.

Good Sign:

Beneish M-Score -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SAU:1080' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.4   Max: -2.08
Current: -2.08

During the past 13 years, the highest Beneish M-Score of Arab National Bank was -2.08. The lowest was -2.88. And the median was -2.40.

SAU:1080
79GF Score
Arab National Bank SAU:1080
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arab National Bank 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 Arab National Bank 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 * 1.0003+0.892 * 1.0351+0.115 * 0.9253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9465+4.679 * 0.019022-0.327 * 0.1487
=-2.08

* 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 Mil.
Revenue was 2588.767 + 2361.009 + 2391.646 + 2594.109 = ﷼9,936 Mil.
Gross Profit was 2588.767 + 2361.009 + 2391.646 + 2594.109 = ﷼9,936 Mil.
Total Current Assets was ﷼0 Mil.
Total Assets was ﷼284,891 Mil.
Property, Plant and Equipment(Net PPE) was ﷼3,302 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼285 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼1,019 Mil.
Total Current Liabilities was ﷼0 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼457 Mil.
Net Income was 1359.203 + 1146.621 + 1329.46 + 1336.471 = ﷼5,172 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ﷼0 Mil.
Cash Flow from Operations was 2007.972 + -2950.662 + 3118.548 + -2423.379 = ﷼-248 Mil.
 Total Receivables was ﷼0 Mil.
Revenue was 2511.628 + 2342.621 + 2409.048 + 2335.177 = ﷼9,598 Mil.
Gross Profit was 2511.628 + 2342.621 + 2409.048 + 2335.177 = ﷼9,598 Mil.
Total Current Assets was ﷼0 Mil.
Total Assets was ﷼264,651 Mil.
Property, Plant and Equipment(Net PPE) was ﷼3,141 Mil.
Depreciation, Depletion and Amortization(DDA) was ﷼250 Mil.
Selling, General, & Admin. Expense(SGA) was ﷼1,040 Mil.
Total Current Liabilities was ﷼0 Mil.
Long-Term Debt & Capital Lease Obligation was ﷼2,852 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 / 9935.531) / (0 / 9598.474)
=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)
=(9598.474 / 9598.474) / (9935.531 / 9935.531)
=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 + 3301.757) / 284891.49) / (1 - (0 + 3140.957) / 264650.738)
=0.98841 / 0.988132
=1.0003

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
=9935.531 / 9598.474
=1.0351

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))
=(249.642 / (249.642 + 3140.957)) / (285.423 / (285.423 + 3301.757))
=0.073628 / 0.079568
=0.9253

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)
=(1018.929 / 9935.531) / (1040.005 / 9598.474)
=0.102554 / 0.108351
=0.9465

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)
=((456.704 + 0) / 284891.49) / ((2852.256 + 0) / 264650.738)
=0.001603 / 0.010777
=0.1487

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
=(5171.755 - 0 - -247.521) / 284891.49
=0.019022

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.

Arab National Bank has a M-score of -2.08 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 -2.08 mean?
Arab National Bank (SAU:1080) has a Beneish M-Score of -2.08 as of Jul. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arab National Bank and its competitors. According to the industry distribution chart, Arab National Bank ranks #1225 out of 1394 companies in the Banks industry, placing it in the top 87.9%.
Is Arab National Bank's Beneish M-Score too high?
Arab National Bank's current Beneish M-Score is -2.08. Based on the distribution chart, Arab National Bank ranks #1225 out of 1394 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Arab National Bank has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arab National Bank's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Arab National Bank ranks #1225 out of 1394 companies for Beneish M-Score. This places Arab National Bank 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 Arab National Bank and its competitors. Arab National Bank's current Beneish M-Score is -2.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arab National Bank stock overvalued right now?
Based on GuruFocus' analysis, Arab National Bank (SAU:1080) is currently considered Fairly Valued. The stock's GF Value™ is ﷼23.00, compared to a current price of ﷼21.32 — trading 7.3% below its estimated fair value. The current Beneish M-Score is -2.08. Arab National Bank's overall GF Score™ is 79/100 with 1 warning sign 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 Arab National Bank (SAU:1080), the current Beneish M-Score is -2.08 as of Jul. 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.

Is Arab National Bank (SAU:1080) Overvalued in 2026?

Based on GuruFocus' analysis, Arab National Bank stock appears to be undervalued. The current stock price of ﷼21.32 is trading 7.3% below its estimated GF Value™ of ﷼23.00. GuruFocus considers Arab National Bank to be Fairly Valued.

Key valuation signals for SAU:1080:

  • Beneish M-Score: -2.08
  • GF Value™: ﷼23.00 vs. price of ﷼21.32 (7.3% below fair value)
  • GF Score™: 79/100 with 1 warning sign

No single metric tells the full story. See the SAU:1080 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Arab National Bank Business Description

Address Arab National Bank, P.O. Box 56921, Riyadh, SAU, 11564
Arab National Bank is a commercial banking service provider based in Saudi Arabia. It offers comprehensive banking solutions including business banking, retail banking, investment products, and other banking services to customers across Saudi Arabia. The company's operating segments are: i) Retail Banking, ii) Corporate Banking, iii) Treasury segment, iv) Investment and brokerage services and iv) Other. The majority of the company's revenue is derived from the Corporate Banking segment, which includes providing Loans and advances, deposits and other credit products for corporate and institutional customers, small to medium sized businesses. Geographically, it operates in Saudi Arabia, Other GCC & Middle East, Europe, North America, Latin America, South East Asia and Other Countries.
79GF Score

Get the complete analysis for SAU:1080

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

﷼21.32
Price
﷼23.00
GF Value