Prudential Financial (STU:PLL) Beneish M-Score: -2.57 (As of Jun. 24, 2026)


STU:PLL Prudential Financial Inc STU:PLL
60 GF Score
Price €95.30
GF Value €96.81
Valuation Fairly Valued
! 3 Warning Signs
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What is Prudential Financial Beneish M-Score?

Prudential Financial STU:PLL +0.91% 60 Beneish M-Score is -2.57 as of Jun. 24, 2026. GuruFocus rates STU:PLL with a GF Score™ of 60/100 and a GF Value™ of €96.81 (Fairly Valued). The stock has 3 warning signs investors should review. Among 399 Insurance companies, Prudential Financial ranks better than 58.4% 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 -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:PLL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.46   Max: 30.34
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Prudential Financial was 30.34. The lowest was -3.28. And the median was -2.46.

STU:PLL
60GF Score
Prudential Financial Inc STU:PLL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Prudential Financial 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 Prudential Financial 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 * 0.9459+0.528 * 1+0.404 * 1+0.892 * 0.9648+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0029+4.679 * -0.013571-0.327 * 1.0225
=-2.63

* 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 €37,379 Mil.
Revenue was 13447.29 + 13387.304 + 15293.4 + 11968.068 = €54,096 Mil.
Gross Profit was 13447.29 + 13387.304 + 15293.4 + 11968.068 = €54,096 Mil.
Total Current Assets was €0 Mil.
Total Assets was €662,068 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €377 Mil.
Selling, General, & Admin. Expense(SGA) was €11,515 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €18,982 Mil.
Net Income was 516.405 + 772.87 + 1219.212 + 462.111 = €2,971 Mil.
Non Operating Income was 25.95 + 865.956 + 1465.44 + 1224.204 = €3,582 Mil.
Cash Flow from Operations was 871.92 + 2834.426 + 3660.192 + 1007.454 = €8,374 Mil.
 Total Receivables was €40,961 Mil.
Revenue was 12521.725 + 12066.425 + 17608.243 + 13874.615 = €56,071 Mil.
Gross Profit was 12521.725 + 12066.425 + 17608.243 + 13874.615 = €56,071 Mil.
Total Current Assets was €0 Mil.
Total Assets was €683,817 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €-159 Mil.
Selling, General, & Admin. Expense(SGA) was €11,901 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €19,173 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)
=(37379.245 / 54096.062) / (40960.85 / 56071.008)
=0.690979 / 0.730517
=0.9459

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)
=(56071.008 / 56071.008) / (54096.062 / 54096.062)
=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 + 0) / 662067.54) / (1 - (0 + 0) / 683817.35)
=1 / 1
=1

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
=54096.062 / 56071.008
=0.9648

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))
=(-159.405 / (-159.405 + 0)) / (377.055 / (377.055 + 0))
=1 / 1
=1

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)
=(11514.785 / 54096.062) / (11901.019 / 56071.008)
=0.212858 / 0.212249
=1.0029

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)
=((18982.425 + 0) / 662067.54) / ((19173.4 + 0) / 683817.35)
=0.028671 / 0.028039
=1.0225

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
=(2970.598 - 3581.55 - 8373.992) / 662067.54
=-0.013571

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.

Prudential Financial has a M-score of -2.63 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 -2.57 mean?
Prudential Financial (STU:PLL) has a Beneish M-Score of -2.57 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Prudential Financial and its competitors. According to the industry distribution chart, Prudential Financial ranks #166 out of 399 companies in the Insurance industry, placing it in the top 41.6%.
Is Prudential Financial's Beneish M-Score too high?
Prudential Financial's current Beneish M-Score is -2.57. Based on the distribution chart, Prudential Financial ranks #166 out of 399 companies in the Insurance industry, which is above the industry midpoint. Overall, Prudential Financial has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prudential Financial's Beneish M-Score compare to MET and UNM?
According to the Insurance industry distribution chart, Prudential Financial ranks #166 out of 399 companies for Beneish M-Score. This puts Prudential Financial in the upper 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 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 Prudential Financial and its competitors. Prudential Financial's current Beneish M-Score is -2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prudential Financial stock overvalued right now?
Based on GuruFocus' analysis, Prudential Financial (STU:PLL) is currently considered Fairly Valued. The stock's GF Value™ is €96.81, compared to a current price of €95.30 — trading 1.6% below its estimated fair value. The current Beneish M-Score is -2.57. Prudential Financial's overall GF Score™ is 60/100 with 3 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 Prudential Financial (STU:PLL), the current Beneish M-Score is -2.57 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 Prudential Financial (STU:PLL) Overvalued in 2026?

Based on GuruFocus' analysis, Prudential Financial stock appears to be undervalued. The current stock price of €95.30 is trading 1.6% below its estimated GF Value™ of €96.81. GuruFocus considers Prudential Financial to be Fairly Valued.

Key valuation signals for STU:PLL:

  • Beneish M-Score: -2.57
  • GF Value™: €96.81 vs. price of €95.30 (1.6% below fair value)
  • GF Score™: 60/100 with 3 warning signs

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

Prudential Financial Business Description

Address 751 Broad Street, Newark, NJ, USA, 07102
Prudential Financial is one of the largest US life insurers, offering annuities, life insurance, and asset-management products. The United States and Japan are its two largest markets. Its US business contributed about 50% of adjusted 2025 earnings and includes institutional retirement (mostly pension risk transfer), individual retirement (annuities), group insurance, and individual life insurance. Its international business represented about 39% of adjusted earnings, with a strong market position in Japan, and the firm also has a presence in emerging markets like Brazil. The company's investment management business, PGIM, contributed approximately 11% of its 2025 adjusted earnings. PGIM had around $1.47 trillion in assets under management at the end of fourth-quarter 2025.
60GF Score

Get the complete analysis for STU:PLL

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

€95.30
Price
€96.81
GF Value