Laurentian Bank of Canada (TSX:LB) Beneish M-Score: -2.67 (As of Jun. 26, 2026)


TSX:LB Laurentian Bank of Canada TSX:LB
52 GF Score
Price C$40.51
GF Value C$26.90
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Laurentian Bank of Canada Beneish M-Score?

Laurentian Bank of Canada TSX:LB +0.05% 52 Beneish M-Score is -2.67 as of Jun. 26, 2026. GuruFocus rates TSX:LB with a GF Score™ of 52/100 and a GF Value™ of C$26.90 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,397 Banks companies, Laurentian Bank of Canada ranks better than 85.18% 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:LB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Med: -2.51   Max: 0.12
Current: -2.67

During the past 13 years, the highest Beneish M-Score of Laurentian Bank of Canada was 0.12. The lowest was -3.01. And the median was -2.51.

TSX:LB
52GF Score
Laurentian Bank of Canada TSX:LB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Laurentian Bank of Canada 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 Laurentian Bank of Canada 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 * 1.0006+0.892 * 0.9717+0.115 * 0.6666
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0424+4.679 * -0.02367-0.327 * 1.0184
=-2.67

* 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 (Apr26) TTM:Last Year (Apr25) TTM:
Total Receivables was C$0.0 Mil.
Revenue was 213.655 + 251.555 + 244.71 + 246.809 = C$956.7 Mil.
Gross Profit was 213.655 + 251.555 + 244.71 + 246.809 = C$956.7 Mil.
Total Current Assets was C$0.0 Mil.
Total Assets was C$49,435.8 Mil.
Property, Plant and Equipment(Net PPE) was C$57.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$65.7 Mil.
Selling, General, & Admin. Expense(SGA) was C$410.0 Mil.
Total Current Liabilities was C$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was C$15,841.6 Mil.
Net Income was -20.587 + -20.497 + 31.481 + 37.463 = C$27.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = C$0.0 Mil.
Cash Flow from Operations was 916.214 + 206.591 + -408.617 + 483.832 = C$1,198.0 Mil.
 Total Receivables was C$0.0 Mil.
Revenue was 242.516 + 248.762 + 236.812 + 256.503 = C$984.6 Mil.
Gross Profit was 242.516 + 248.762 + 236.812 + 256.503 = C$984.6 Mil.
Total Current Assets was C$0.0 Mil.
Total Assets was C$49,518.2 Mil.
Property, Plant and Equipment(Net PPE) was C$86.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$47.7 Mil.
Selling, General, & Admin. Expense(SGA) was C$404.8 Mil.
Total Current Liabilities was C$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was C$15,581.6 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 / 956.729) / (0 / 984.593)
=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)
=(984.593 / 984.593) / (956.729 / 956.729)
=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 + 57.338) / 49435.76) / (1 - (0 + 86.283) / 49518.184)
=0.99884 / 0.998258
=1.0006

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
=956.729 / 984.593
=0.9717

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))
=(47.671 / (47.671 + 86.283)) / (65.671 / (65.671 + 57.338))
=0.355876 / 0.533872
=0.6666

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)
=(410.015 / 956.729) / (404.796 / 984.593)
=0.428559 / 0.41113
=1.0424

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)
=((15841.59 + 0) / 49435.76) / ((15581.62 + 0) / 49518.184)
=0.320448 / 0.314665
=1.0184

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
=(27.86 - 0 - 1198.02) / 49435.76
=-0.02367

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.

Laurentian Bank of Canada has a M-score of -2.67 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 -2.67 mean?
Laurentian Bank of Canada (TSX:LB) has a Beneish M-Score of -2.67 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Laurentian Bank of Canada and its competitors. According to the industry distribution chart, Laurentian Bank of Canada ranks #207 out of 1397 companies in the Banks industry, placing it in the top 14.8%.
Is Laurentian Bank of Canada's Beneish M-Score too high?
Laurentian Bank of Canada's current Beneish M-Score is -2.67. Based on the distribution chart, Laurentian Bank of Canada ranks #207 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Laurentian Bank of Canada has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurentian Bank of Canada's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Laurentian Bank of Canada ranks #207 out of 1397 companies for Beneish M-Score. This places Laurentian Bank of Canada in the top 15% 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 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 Laurentian Bank of Canada and its competitors. Laurentian Bank of Canada's current Beneish M-Score is -2.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurentian Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, Laurentian Bank of Canada (TSX:LB) is currently considered Significantly Overvalued. The stock's GF Value™ is C$26.90, compared to a current price of C$40.51 — trading 50.6% above its estimated fair value. The current Beneish M-Score is -2.67. Laurentian Bank of Canada's overall GF Score™ is 52/100 with 9 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 Laurentian Bank of Canada (TSX:LB), the current Beneish M-Score is -2.67 as of Jun. 26, 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 Laurentian Bank of Canada (TSX:LB) Overvalued in 2026?

Based on GuruFocus' analysis, Laurentian Bank of Canada stock appears to be overvalued. The current stock price of C$40.51 is trading 50.6% above its estimated GF Value™ of C$26.90. GuruFocus considers Laurentian Bank of Canada to be Significantly Overvalued.

Key valuation signals for TSX:LB:

  • Beneish M-Score: -2.67
  • GF Value™: C$26.90 vs. price of C$40.51 (50.6% above fair value)
  • GF Score™: 52/100 with 9 warning signs

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

Laurentian Bank of Canada Business Description

Address 1360, Boulevard Rene-Levesque Ouest, Suite 600, Secretariat Corporatif, Montreal, QC, CAN, H3G 0E5
Laurentian Bank of Canada provides personal banking, business banking, and real estate and commercial financing services to its personal, business, and institutional customers across Canada and the United States. The company operates through two segments: the Personal and Commercial Banking segment, which offers a broad range of financial services and advice-based solutions for personal and commercial banking customers in Canada and the United States; and the Capital Markets segment, which provides services including research, market analysis, advisory services, corporate underwriting for debt and equity, and administrative support. The company operates in Canada and the United States, with the majority of its revenue generated from Canada.
52GF Score

Get the complete analysis for TSX:LB

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

C$40.51
Price
C$26.90
GF Value