Great-West Lifeco (TSX:GWO) Beneish M-Score: -2.30 (As of Jun. 28, 2026)


TSX:GWO Great-West Lifeco Inc TSX:GWO
59 GF Score
Price C$88.41
GF Value C$52.35
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Great-West Lifeco Beneish M-Score?

Great-West Lifeco TSX:GWO -0.33% 59 Beneish M-Score is -2.30 as of Jun. 28, 2026. GuruFocus rates TSX:GWO with a GF Score™ of 59/100 and a GF Value™ of C$52.35 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 402 Insurance companies, Great-West Lifeco ranks worse than 72.14% 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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:GWO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.49   Med: -2.4   Max: 32.52
Current: -2.3

During the past 13 years, the highest Beneish M-Score of Great-West Lifeco was 32.52. The lowest was -3.49. And the median was -2.40.

TSX:GWO
59GF Score
Great-West Lifeco Inc TSX:GWO
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Great-West Lifeco 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 Great-West Lifeco 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 * 1.0054+0.528 * 1+0.404 * 1.0001+0.892 * 1.1262+0.115 * 0.9963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9358+4.679 * 0.001636-0.327 * 0.8795
=-2.30

* 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 C$7,473 Mil.
Revenue was C$39,104 Mil.
Gross Profit was C$39,104 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$862,828 Mil.
Property, Plant and Equipment(Net PPE) was C$1,498 Mil.
Depreciation, Depletion and Amortization(DDA) was C$579 Mil.
Selling, General, & Admin. Expense(SGA) was C$7,095 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$12,767 Mil.
Net Income was C$4,120 Mil.
Gross Profit was C$0 Mil.
Cash Flow from Operations was C$2,708 Mil.
 Total Receivables was C$6,600 Mil.
Revenue was C$34,723 Mil.
Gross Profit was C$34,723 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$802,163 Mil.
Property, Plant and Equipment(Net PPE) was C$1,446 Mil.
Depreciation, Depletion and Amortization(DDA) was C$556 Mil.
Selling, General, & Admin. Expense(SGA) was C$6,732 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$13,496 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)
=(7473 / 39104) / (6600 / 34723)
=0.191106 / 0.190076
=1.0054

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)
=(34723 / 34723) / (39104 / 39104)
=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 + 1498) / 862828) / (1 - (0 + 1446) / 802163)
=0.998264 / 0.998197
=1.0001

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
=39104 / 34723
=1.1262

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))
=(556 / (556 + 1446)) / (579 / (579 + 1498))
=0.277722 / 0.278767
=0.9963

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)
=(7095 / 39104) / (6732 / 34723)
=0.181439 / 0.193877
=0.9358

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)
=((12767 + 0) / 862828) / ((13496 + 0) / 802163)
=0.014797 / 0.016825
=0.8795

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
=(4120 - 0 - 2708) / 862828
=0.001636

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.

Great-West Lifeco has a M-score of -2.30 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 -2.30 mean?
Great-West Lifeco (TSX:GWO) has a Beneish M-Score of -2.30 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Great-West Lifeco and its competitors. According to the industry distribution chart, Great-West Lifeco ranks #290 out of 402 companies in the Insurance industry, placing it in the top 72.1%.
Is Great-West Lifeco's Beneish M-Score too high?
Great-West Lifeco's current Beneish M-Score is -2.30. Based on the distribution chart, Great-West Lifeco ranks #290 out of 402 companies in the Insurance industry, which is below the industry midpoint. Overall, Great-West Lifeco has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Great-West Lifeco's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, Great-West Lifeco ranks #290 out of 402 companies for Beneish M-Score. This places Great-West Lifeco 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 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 Great-West Lifeco and its competitors. Great-West Lifeco's current Beneish M-Score is -2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Great-West Lifeco stock overvalued right now?
Based on GuruFocus' analysis, Great-West Lifeco (TSX:GWO) is currently considered Significantly Overvalued. The stock's GF Value™ is C$52.35, compared to a current price of C$88.41 — trading 68.9% above its estimated fair value. The current Beneish M-Score is -2.30. Great-West Lifeco's overall GF Score™ is 59/100 with 7 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 Great-West Lifeco (TSX:GWO), the current Beneish M-Score is -2.30 as of Jun. 28, 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 Great-West Lifeco (TSX:GWO) Overvalued in 2026?

Based on GuruFocus' analysis, Great-West Lifeco stock appears to be overvalued. The current stock price of C$88.41 is trading 68.9% above its estimated GF Value™ of C$52.35. GuruFocus considers Great-West Lifeco to be Significantly Overvalued.

Key valuation signals for TSX:GWO:

  • Beneish M-Score: -2.30
  • GF Value™: C$52.35 vs. price of C$88.41 (68.9% above fair value)
  • GF Score™: 59/100 with 7 warning signs

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

Great-West Lifeco Business Description

Address 100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3
Great-West Lifeco is one of the Big Three Canadian life insurers. The firm's Canadian business contributed around 31% of its 2025 adjusted earnings. The firm generates a further 29% of adjusted earnings from the United States, attributable to its recordkeeping business, Empower, and its US life insurance business. Great-West Lifeco also offers various products across European markets with a strong presence in the UK and Ireland, which collectively accounted for 20% of adjusted earnings, while the firm's reinsurance business accounts for the remainder. Great-West Lifeco had around CAD 3.5 trillion of assets under administration across its business segments at the end of December 2025.
59GF Score

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

C$88.41
Price
C$52.35
GF Value