Heritage Insurance Holdings (STU:11H) Beneish M-Score: -2.90 (As of Aug. 20, 2026)

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STU:11H Heritage Insurance Holdings Inc STU:11H
63 GF Score
Price €28.56
GF Value €23.19
! 6 Warning Signs
View Full Analysis

What is Heritage Insurance Holdings Beneish M-Score?

Heritage Insurance Holdings STU:11H -1.79% 63 Beneish M-Score is -2.90 as of Aug. 20, 2026. GuruFocus rates STU:11H with a GF Score™ of 63/100 and a GF Value™ of €23.19. The stock has 6 warning signs investors should review. Among 403 Insurance companies, Heritage Insurance Holdings ranks better than 82.38% 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 -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:11H' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Med: -2.63   Max: 11.02
Current: -2.9

During the past 13 years, the highest Beneish M-Score of Heritage Insurance Holdings was 11.02. The lowest was -3.20. And the median was -2.63.

STU:11H
63GF Score
Heritage Insurance Holdings Inc STU:11H
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Heritage Insurance Holdings 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 Heritage Insurance Holdings 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 * 0.6693+0.528 * 1+0.404 * 1.0046+0.892 * 0.9289+0.115 * 0.7498
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9832+4.679 * -0.041617-0.327 * 0.5066
=-2.91

* 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 (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was €346.5 Mil.
Revenue was 185.921 + 196.578 + 121.624 + 181.016 = €685.1 Mil.
Gross Profit was 185.921 + 196.578 + 121.624 + 181.016 = €685.1 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,128.7 Mil.
Property, Plant and Equipment(Net PPE) was €39.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €11.1 Mil.
Selling, General, & Admin. Expense(SGA) was €68.0 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €17.1 Mil.
Net Income was 53.564 + 31.558 + 56.94 + 42.959 = €185.0 Mil.
Non Operating Income was 2.181 + 2.667 + 2.403 + 4.171 = €11.4 Mil.
Cash Flow from Operations was 122.986 + 21.507 + 11.79 + 105.906 = €262.2 Mil.
 Total Receivables was €557.4 Mil.
Revenue was 180.366 + 213.601 + 152.765 + 190.876 = €737.6 Mil.
Gross Profit was 180.366 + 213.601 + 152.765 + 190.876 = €737.6 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,199.4 Mil.
Property, Plant and Equipment(Net PPE) was €50.3 Mil.
Depreciation, Depletion and Amortization(DDA) was €10.0 Mil.
Selling, General, & Admin. Expense(SGA) was €74.4 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €34.8 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)
=(346.513 / 685.139) / (557.383 / 737.608)
=0.505756 / 0.755663
=0.6693

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)
=(737.608 / 737.608) / (685.139 / 685.139)
=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 + 39.212) / 2128.714) / (1 - (0 + 50.302) / 2199.367)
=0.981579 / 0.977129
=1.0046

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
=685.139 / 737.608
=0.9289

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))
=(9.955 / (9.955 + 50.302)) / (11.082 / (11.082 + 39.212))
=0.165209 / 0.220344
=0.7498

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)
=(67.981 / 685.139) / (74.441 / 737.608)
=0.099222 / 0.100922
=0.9832

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)
=((17.053 + 0) / 2128.714) / ((34.776 + 0) / 2199.367)
=0.008011 / 0.015812
=0.5066

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
=(185.021 - 11.422 - 262.189) / 2128.714
=-0.041617

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.

Heritage Insurance Holdings has a M-score of -2.91 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 -2.90 mean?
Heritage Insurance Holdings (STU:11H) has a Beneish M-Score of -2.90 as of Aug. 20, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Heritage Insurance Holdings and its competitors. According to the industry distribution chart, Heritage Insurance Holdings ranks #71 out of 403 companies in the Insurance industry, placing it in the top 17.6%.
Is Heritage Insurance Holdings' Beneish M-Score too high?
Heritage Insurance Holdings' current Beneish M-Score is -2.90. Based on the distribution chart, Heritage Insurance Holdings ranks #71 out of 403 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Heritage Insurance Holdings has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Heritage Insurance Holdings' Beneish M-Score compare to ROOT and HIPO?
According to the Insurance industry distribution chart, Heritage Insurance Holdings ranks #71 out of 403 companies for Beneish M-Score. This places Heritage Insurance Holdings in the top 18% of its industry — outperforming the majority of peers. 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 Insurance company?
A good Beneish M-Score depends on the Insurance 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 Heritage Insurance Holdings and its competitors. Heritage Insurance Holdings's current Beneish M-Score is -2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heritage Insurance Holdings stock overvalued right now?
Heritage Insurance Holdings (STU:11H) has a current Beneish M-Score of -2.90. The stock's GF Value™ is €23.19, compared to a current price of €28.56 — trading 23.2% above its estimated fair value. The current Beneish M-Score is -2.90. Heritage Insurance Holdings' overall GF Score™ is 63/100 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 Heritage Insurance Holdings (STU:11H), the current Beneish M-Score is -2.90 as of Aug. 20, 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 Heritage Insurance Holdings (STU:11H) Overvalued in 2026?

Based on GuruFocus' analysis, Heritage Insurance Holdings stock appears to be overvalued. The current stock price of €28.56 is trading 23.2% above its estimated GF Value™ of €23.19.

Key valuation signals for STU:11H:

  • Beneish M-Score: -2.90
  • GF Value™: €23.19 vs. price of €28.56 (23.2% above fair value)
  • GF Score™: 63/100 with 6 warning signs

No single metric tells the full story. See the STU:11H stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Heritage Insurance Holdings Business Description

Other Exchanges HRTG:USA
Address 1401 North Westshore Boulevard, Tampa, FL, USA, 33607
Heritage Insurance Holdings Inc is a regional property and casualty insurance company that offers a variety of personal and commercial insurance products. Through its subsidiaries, Heritage Property & Casualty Insurance, Narragansett Bay Insurance, and Zephyr Insurance, the company issues personal residential property insurance across various states in the U.S. It also offers commercial residential insurance predominantly for its Florida properties. Heritage Insurance manages insurance underwriting, customer services, actuarial analysis, distribution, and claims processing internally. The company operates in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, and South Carolina.
63GF Score

Get the complete analysis for STU:11H

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

€28.56
Price
€23.19
GF Value