iA Financial (TSX:IAG) Beneish M-Score: -2.63 (As of Jun. 25, 2026)


TSX:IAG iA Financial Corp Inc TSX:IAG
61 GF Score
Price C$191.12
GF Value C$136.57
Valuation Significantly Overvalued
! 8 Warning Signs
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What is iA Financial Beneish M-Score?

iA Financial TSX:IAG +2.07% 61 Beneish M-Score is -2.63 as of Jun. 25, 2026. GuruFocus rates TSX:IAG with a GF Score™ of 61/100 and a GF Value™ of C$136.57 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 397 Insurance companies, iA Financial ranks better than 64.99% 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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:IAG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.69   Med: -2.48   Max: 0.23
Current: -2.63

During the past 13 years, the highest Beneish M-Score of iA Financial was 0.23. The lowest was -3.69. And the median was -2.48.

TSX:IAG
61GF Score
iA Financial Corp Inc TSX:IAG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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iA 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 iA 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 * 1+0.528 * 1+0.404 * 1.0002+0.892 * 0.9014+0.115 * 0.965
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.021009-0.327 * 0.8885
=-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 C$0 Mil.
Revenue was 2484 + 347 + 3389 + 1721 = C$7,941 Mil.
Gross Profit was 2484 + 347 + 3389 + 1721 = C$7,941 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$125,852 Mil.
Property, Plant and Equipment(Net PPE) was C$342 Mil.
Depreciation, Depletion and Amortization(DDA) was C$376 Mil.
Selling, General, & Admin. Expense(SGA) was C$0 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,497 Mil.
Net Income was 146 + 201 + 373 + 327 = C$1,047 Mil.
Non Operating Income was 644 + 637 + 520 + 21 = C$1,822 Mil.
Cash Flow from Operations was 401 + 831 + 365 + 272 = C$1,869 Mil.
 Total Receivables was C$0 Mil.
Revenue was 2720 + -142 + 4420 + 1812 = C$8,810 Mil.
Gross Profit was 2720 + -142 + 4420 + 1812 = C$8,810 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$111,676 Mil.
Property, Plant and Equipment(Net PPE) was C$323 Mil.
Depreciation, Depletion and Amortization(DDA) was C$330 Mil.
Selling, General, & Admin. Expense(SGA) was C$0 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,495 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 / 7941) / (0 / 8810)
=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)
=(8810 / 8810) / (7941 / 7941)
=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 + 342) / 125852) / (1 - (0 + 323) / 111676)
=0.997283 / 0.997108
=1.0002

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
=7941 / 8810
=0.9014

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))
=(330 / (330 + 323)) / (376 / (376 + 342))
=0.50536 / 0.523677
=0.965

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)
=(0 / 7941) / (0 / 8810)
=0 / 0
=1

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)
=((1497 + 0) / 125852) / ((1495 + 0) / 111676)
=0.011895 / 0.013387
=0.8885

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
=(1047 - 1822 - 1869) / 125852
=-0.021009

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.

iA 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 -2.63 mean?
iA Financial (TSX:IAG) has a Beneish M-Score of -2.63 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on iA Financial and its competitors. According to the industry distribution chart, iA Financial ranks #139 out of 397 companies in the Insurance industry, placing it in the top 35%.
Is iA Financial's Beneish M-Score too high?
iA Financial's current Beneish M-Score is -2.63. Based on the distribution chart, iA Financial ranks #139 out of 397 companies in the Insurance industry, which is above the industry midpoint. Overall, iA Financial has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does iA Financial's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, iA Financial ranks #139 out of 397 companies for Beneish M-Score. This puts iA 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 iA Financial and its competitors. iA Financial's current Beneish M-Score is -2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is iA Financial stock overvalued right now?
Based on GuruFocus' analysis, iA Financial (TSX:IAG) is currently considered Significantly Overvalued. The stock's GF Value™ is C$136.57, compared to a current price of C$191.12 — trading 39.9% above its estimated fair value. The current Beneish M-Score is -2.63. iA Financial's overall GF Score™ is 61/100 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 iA Financial (TSX:IAG), the current Beneish M-Score is -2.63 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 iA Financial (TSX:IAG) Overvalued in 2026?

Based on GuruFocus' analysis, iA Financial stock appears to be overvalued. The current stock price of C$191.12 is trading 39.9% above its estimated GF Value™ of C$136.57. GuruFocus considers iA Financial to be Significantly Overvalued.

Key valuation signals for TSX:IAG:

  • Beneish M-Score: -2.63
  • GF Value™: C$136.57 vs. price of C$191.12 (39.9% above fair value)
  • GF Score™: 61/100 with 8 warning signs

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

iA Financial Business Description

Other Exchanges IAFNF:USA1OD:Germany
Address 1080 Grande Allee West, Quebec, QC, CAN, G1S 1C7
iA Financial Corp Inc is an insurance and wealth management group based in Canada. It offers various life and health insurance products, savings and retirement plans, mutual funds, securities, loans, auto and home insurance, creditor insurance, replacement insurance, replacement warranties, extended warranties, and other ancillary products for dealer services and other financial products and services. The company's products and services are offered on both an individual and group basis and extend throughout Canada and the United States. Its operating segments are: Insurance, Canada; Wealth Management; U.S. Operations; Investment; and Corporate. Maximum revenue is generated from the Insurance, Canada segment.
61GF Score

Get the complete analysis for TSX:IAG

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

C$191.12
Price
C$136.57
GF Value