Agricultural Development Bank (XGHA:ADB) Beneish M-Score: -2.57 (As of Jun. 26, 2026)


XGHA:ADB Agricultural Development Bank Ltd XGHA:ADB
64 GF Score
Price GHS5.30
GF Value GHS3.97
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Agricultural Development Bank Beneish M-Score?

Agricultural Development Bank XGHA:ADB 64 Beneish M-Score is -2.57 as of Jun. 26, 2026. GuruFocus rates XGHA:ADB with a GF Score™ of 64/100 and a GF Value™ of GHS3.97 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,397 Banks companies, Agricultural Development Bank ranks better than 78.24% 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 Agricultural Development Bank's Beneish M-Score or its related term are showing as below:

XGHA:ADB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Med: -2.69   Max: -2.45
Current: -2.57

During the past 11 years, the highest Beneish M-Score of Agricultural Development Bank was -2.45. The lowest was -3.85. And the median was -2.69.

XGHA:ADB
64GF Score
Agricultural Development Bank Ltd XGHA:ADB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Agricultural Development Bank 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 Agricultural Development Bank 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 * 1.006+0.892 * 1.7278+0.115 * 0.8789
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3837+4.679 * -0.139508-0.327 * 1.5464
=-2.57

* 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 GHS0 Mil.
Revenue was GHS1,723 Mil.
Gross Profit was GHS1,723 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS17,888 Mil.
Property, Plant and Equipment(Net PPE) was GHS223 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS72 Mil.
Selling, General, & Admin. Expense(SGA) was GHS59 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS1,583 Mil.
Net Income was GHS367 Mil.
Gross Profit was GHS0 Mil.
Cash Flow from Operations was GHS2,863 Mil.
 Total Receivables was GHS0 Mil.
Revenue was GHS997 Mil.
Gross Profit was GHS997 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS14,605 Mil.
Property, Plant and Equipment(Net PPE) was GHS268 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS73 Mil.
Selling, General, & Admin. Expense(SGA) was GHS89 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS836 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 / 1722.966) / (0 / 997.182)
=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)
=(997.182 / 997.182) / (1722.966 / 1722.966)
=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 + 223.292) / 17887.521) / (1 - (0 + 267.743) / 14604.777)
=0.987517 / 0.981667
=1.006

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
=1722.966 / 997.182
=1.7278

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))
=(72.876 / (72.876 + 267.743)) / (71.846 / (71.846 + 223.292))
=0.213952 / 0.243432
=0.8789

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)
=(59.115 / 1722.966) / (89.172 / 997.182)
=0.03431 / 0.089424
=0.3837

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)
=((1582.522 + 0) / 17887.521) / ((835.554 + 0) / 14604.777)
=0.088471 / 0.057211
=1.5464

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
=(367.291 - 0 - 2862.749) / 17887.521
=-0.139508

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.

Agricultural Development Bank has a M-score of -2.57 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?
Agricultural Development Bank (XGHA:ADB) has a Beneish M-Score of -2.57 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Agricultural Development Bank and its competitors. According to the industry distribution chart, Agricultural Development Bank ranks #304 out of 1397 companies in the Banks industry, placing it in the top 21.8%.
Is Agricultural Development Bank's Beneish M-Score too high?
Agricultural Development Bank's current Beneish M-Score is -2.57. Based on the distribution chart, Agricultural Development Bank ranks #304 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Agricultural Development Bank has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Agricultural Development Bank's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, Agricultural Development Bank ranks #304 out of 1397 companies for Beneish M-Score. This places Agricultural Development Bank in the top 22% 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 Agricultural Development Bank and its competitors. Agricultural Development Bank'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 Agricultural Development Bank stock overvalued right now?
Based on GuruFocus' analysis, Agricultural Development Bank (XGHA:ADB) is currently considered Significantly Overvalued. The stock's GF Value™ is GHS3.97, compared to a current price of GHS5.30 — trading 33.5% above its estimated fair value. The current Beneish M-Score is -2.57. Agricultural Development Bank's overall GF Score™ is 64/100 with 5 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 Agricultural Development Bank (XGHA:ADB), the current Beneish M-Score is -2.57 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 Agricultural Development Bank (XGHA:ADB) Overvalued in 2026?

Based on GuruFocus' analysis, Agricultural Development Bank stock appears to be overvalued. The current stock price of GHS5.30 is trading 33.5% above its estimated GF Value™ of GHS3.97. GuruFocus considers Agricultural Development Bank to be Significantly Overvalued.

Key valuation signals for XGHA:ADB:

  • Beneish M-Score: -2.57
  • GF Value™: GHS3.97 vs. price of GHS5.30 (33.5% above fair value)
  • GF Score™: 64/100 with 5 warning signs

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

Agricultural Development Bank Business Description

Address Accra Financial Centre, P.O. Box 4191, Ridge-Accra, 3rd Ambassadorial Development Area, Accra, GHA
Agricultural Development Bank Ltd is a universal bank offering a full range of banking products and services in Consumer, Corporate, Parastatals/Public Sector, SME, Agribusiness, Trade and E-Banking services. Its business focus is universal banking with a developmental focus on Agriculture and more. The company's operating segment includes Corporate Banking, Retail Banking, and Central Treasury. The majority of revenue is derived from the Retail Banking segment, which focuses on high-volume, standardized financial products and services such as loans and advances, deposits and other transactions with retail customers. Geographically, all revenues are generated in Ghana.
64GF Score

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

GHS5.30
Price
GHS3.97
GF Value