Ecobank Transnational (XGHA:ETI) Beneish M-Score: -2.30 (As of Jun. 30, 2026)


XGHA:ETI Ecobank Transnational Inc XGHA:ETI
21 GF Score
Price GHS2.27
GF Value GHS0.83
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Ecobank Transnational Beneish M-Score?

Ecobank Transnational XGHA:ETI 21 Beneish M-Score is -2.30 as of Jun. 30, 2026. GuruFocus rates XGHA:ETI with a GF Score™ of 21/100 and a GF Value™ of GHS0.83 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,399 Banks companies, Ecobank Transnational ranks worse than 67.41% 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 Ecobank Transnational's Beneish M-Score or its related term are showing as below:

XGHA:ETI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Med: -2.68   Max: -1.93
Current: -2.3

During the past 13 years, the highest Beneish M-Score of Ecobank Transnational was -1.93. The lowest was -3.01. And the median was -2.68.

XGHA:ETI
21GF Score
Ecobank Transnational Inc XGHA:ETI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Ecobank Transnational 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 Ecobank Transnational 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 * 1.0007+0.892 * 1.3522+0.115 * 1.107
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.048438-0.327 * 0.7204
=-2.29

* 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 GHS0 Mil.
Revenue was 7090.069 + 9439.815 + 7078.758 + 6689.799 = GHS30,298 Mil.
Gross Profit was 7090.069 + 9439.815 + 7078.758 + 6689.799 = GHS30,298 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS391,784 Mil.
Property, Plant and Equipment(Net PPE) was GHS7,692 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS916 Mil.
Selling, General, & Admin. Expense(SGA) was GHS0 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS21,171 Mil.
Net Income was 1072.822 + 1083.052 + 1334.884 + 1226.397 = GHS4,717 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = GHS0 Mil.
Cash Flow from Operations was 13077.997 + 7390.511 + -637.114 + 3863.179 = GHS23,695 Mil.
 Total Receivables was GHS0 Mil.
Revenue was 5442.685 + 5958.652 + 5454.999 + 5550.024 = GHS22,406 Mil.
Gross Profit was 5442.685 + 5958.652 + 5454.999 + 5550.024 = GHS22,406 Mil.
Total Current Assets was GHS0 Mil.
Total Assets was GHS321,955 Mil.
Property, Plant and Equipment(Net PPE) was GHS6,532 Mil.
Depreciation, Depletion and Amortization(DDA) was GHS872 Mil.
Selling, General, & Admin. Expense(SGA) was GHS0 Mil.
Total Current Liabilities was GHS0 Mil.
Long-Term Debt & Capital Lease Obligation was GHS24,151 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 / 30298.441) / (0 / 22406.36)
=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)
=(22406.36 / 22406.36) / (30298.441 / 30298.441)
=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 + 7691.845) / 391784.114) / (1 - (0 + 6531.922) / 321955.442)
=0.980367 / 0.979712
=1.0007

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
=30298.441 / 22406.36
=1.3522

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))
=(872.33 / (872.33 + 6531.922)) / (916.126 / (916.126 + 7691.845))
=0.117815 / 0.106428
=1.107

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 / 30298.441) / (0 / 22406.36)
=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)
=((21170.758 + 0) / 391784.114) / ((24151.165 + 0) / 321955.442)
=0.054037 / 0.075014
=0.7204

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
=(4717.155 - 0 - 23694.573) / 391784.114
=-0.048438

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.

Ecobank Transnational has a M-score of -2.29 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?
Ecobank Transnational (XGHA:ETI) has a Beneish M-Score of -2.30 as of Jun. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ecobank Transnational and its competitors. According to the industry distribution chart, Ecobank Transnational ranks #943 out of 1399 companies in the Banks industry, placing it in the top 67.4%.
Is Ecobank Transnational's Beneish M-Score too high?
Ecobank Transnational's current Beneish M-Score is -2.30. Based on the distribution chart, Ecobank Transnational ranks #943 out of 1399 companies in the Banks industry, which is below the industry midpoint. Overall, Ecobank Transnational has a GF Score™ of 21/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ecobank Transnational's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Ecobank Transnational ranks #943 out of 1399 companies for Beneish M-Score. This places Ecobank Transnational 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 Ecobank Transnational and its competitors. Ecobank Transnational'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 Ecobank Transnational stock overvalued right now?
Based on GuruFocus' analysis, Ecobank Transnational (XGHA:ETI) is currently considered Significantly Overvalued. The stock's GF Value™ is GHS0.83, compared to a current price of GHS2.27 — trading 173.5% above its estimated fair value. The current Beneish M-Score is -2.30. Ecobank Transnational's overall GF Score™ is 21/100 with 6 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 Ecobank Transnational (XGHA:ETI), the current Beneish M-Score is -2.30 as of Jun. 30, 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 Ecobank Transnational (XGHA:ETI) Overvalued in 2026?

Based on GuruFocus' analysis, Ecobank Transnational stock appears to be overvalued. The current stock price of GHS2.27 is trading 173.5% above its estimated GF Value™ of GHS0.83. GuruFocus considers Ecobank Transnational to be Significantly Overvalued.

Key valuation signals for XGHA:ETI:

  • Beneish M-Score: -2.30
  • GF Value™: GHS0.83 vs. price of GHS2.27 (173.5% above fair value)
  • GF Score™: 21/100 with 6 warning signs

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

Ecobank Transnational Business Description

Address 2365, Boulevard du Mono, Lome, TGO, 3261
Ecobank Transnational Inc is a pan-African banking group. Through its subsidiaries, it provides retail, corporate and investment banking services throughout sub Saharan Africa outside South Africa. The company operates in three principal business reporting segments: Consumer Banking (CSB), Commercial Banking (CMB) and Corporate and Investment Banking (CIB). The majority of the revenue is derived from the Corporate and Investment Banking segment, which provides various financial services, including FICC, cash management, trade, loans and liquidity and securities, wealth, and asset management. Geographically, it derives the maximum revenue from Francophone West Africa (UEMOA), and the rest from Nigeria, Anglophone West Africa (AWA), and Central, Eastern and Southern Africa (CESA).
21GF Score

Get the complete analysis for XGHA:ETI

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

GHS2.27
Price
GHS0.83
GF Value