WSBF (Waterstone Financial) Beneish M-Score: -2.38 (As of Jun. 25, 2026)


WSBF Waterstone Financial Inc WSBF
56 GF Score
Price $19.79
GF Value $16.86
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Waterstone Financial Beneish M-Score?

Waterstone Financial WSBF +1.59% 56 Beneish M-Score is -2.38 as of Jun. 25, 2026. GuruFocus rates WSBF with a GF Score™ of 56/100 and a GF Value™ of $16.86 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,396 Banks companies, Waterstone Financial ranks worse than 53.22% 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WSBF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08   Med: -2.49   Max: -1.51
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Waterstone Financial was -1.51. The lowest was -3.08. And the median was -2.49.

WSBF
56GF Score
Waterstone Financial Inc WSBF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Waterstone 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 Waterstone 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 * 1.0003+0.892 * 1.1159+0.115 * 0.9844
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9354+4.679 * 0.014468-0.327 * 1.2357
=-2.38

* 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 $0.0 Mil.
Revenue was 34.662 + 36.599 + 36.353 + 37.22 = $144.8 Mil.
Gross Profit was 34.662 + 36.599 + 36.353 + 37.22 = $144.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,251.2 Mil.
Property, Plant and Equipment(Net PPE) was $19.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.8 Mil.
Selling, General, & Admin. Expense(SGA) was $85.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $243.0 Mil.
Net Income was 5.997 + 7.713 + 7.926 + 7.727 = $29.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -0.647 + 3.173 + 32.715 + -38.448 = $-3.2 Mil.
 Total Receivables was $0.0 Mil.
Revenue was 28.753 + 31.354 + 33.372 + 36.315 = $129.8 Mil.
Gross Profit was 28.753 + 31.354 + 33.372 + 36.315 = $129.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,175.4 Mil.
Property, Plant and Equipment(Net PPE) was $19.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.7 Mil.
Selling, General, & Admin. Expense(SGA) was $81.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $190.0 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 / 144.834) / (0 / 129.794)
=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)
=(129.794 / 129.794) / (144.834 / 144.834)
=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 + 19.273) / 2251.218) / (1 - (0 + 19.223) / 2175.367)
=0.991439 / 0.991163
=1.0003

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
=144.834 / 129.794
=1.1159

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))
=(2.699 / (2.699 + 19.223)) / (2.755 / (2.755 + 19.273))
=0.123118 / 0.125068
=0.9844

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)
=(85.185 / 144.834) / (81.612 / 129.794)
=0.588156 / 0.628781
=0.9354

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)
=((242.972 + 0) / 2251.218) / ((190 + 0) / 2175.367)
=0.107929 / 0.087342
=1.2357

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
=(29.363 - 0 - -3.207) / 2251.218
=0.014468

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.

Waterstone Financial has a M-score of -2.38 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 -2.38 mean?
Waterstone Financial (WSBF) has a Beneish M-Score of -2.38 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Waterstone Financial and its competitors. According to the industry distribution chart, Waterstone Financial ranks #743 out of 1396 companies in the Banks industry, placing it in the top 53.2%.
Is Waterstone Financial's Beneish M-Score too high?
Waterstone Financial's current Beneish M-Score is -2.38. Based on the distribution chart, Waterstone Financial ranks #743 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, Waterstone Financial has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Waterstone Financial's Beneish M-Score compare to BFCC and NECB?
According to the Banks industry distribution chart, Waterstone Financial ranks #743 out of 1396 companies for Beneish M-Score. This places Waterstone Financial 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 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 Waterstone Financial and its competitors. Waterstone Financial's current Beneish M-Score is -2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterstone Financial stock overvalued right now?
Based on GuruFocus' analysis, Waterstone Financial (WSBF) is currently considered Modestly Overvalued. The stock's GF Value™ is $16.86, compared to a current price of $19.79 — trading 17.4% above its estimated fair value. The current Beneish M-Score is -2.38. Waterstone Financial's overall GF Score™ is 56/100 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 Waterstone Financial (WSBF), the current Beneish M-Score is -2.38 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 Waterstone Financial (WSBF) Overvalued in 2026?

Based on GuruFocus' analysis, Waterstone Financial stock appears to be overvalued. The current stock price of $19.79 is trading 17.4% above its estimated GF Value™ of $16.86. GuruFocus considers Waterstone Financial to be Modestly Overvalued.

Key valuation signals for WSBF:

  • Beneish M-Score: -2.38
  • GF Value™: $16.86 vs. price of $19.79 (17.4% above fair value)
  • GF Score™: 56/100 with 7 warning signs

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

Waterstone Financial Business Description

Other Exchanges 47Z:Germany
Address 11200 West Plank Court, Wauwatosa, WI, USA, 53226
Waterstone Financial Inc is a holding company. Through its subsidiaries, it operates in two reportable segments: Community Banking and Mortgage Banking. The Community Banking segment provides consumer and business banking products and services to customers, which include various types of loans, deposits, and personal investment services. The Mortgage Banking segment involves residential mortgage loans for the primary purpose of sale in the secondary market. The majority of its revenue comes from the Community Banking segment.
56GF Score

Get the complete analysis for WSBF

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

$19.79
Price
$16.86
GF Value