Kumari Bank (XNEP:KBL) Beneish M-Score: -2.75 (As of Jul. 02, 2026)


XNEP:KBL Kumari Bank Ltd XNEP:KBL
77 GF Score
Price NPR210.10
GF Value NPR231.80
Valuation Fairly Valued
! 1 Warning Sign
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What is Kumari Bank Beneish M-Score?

Kumari Bank XNEP:KBL +2.89% 77 Beneish M-Score is -2.75 as of Jul. 02, 2026. GuruFocus rates XNEP:KBL with a GF Score™ of 77/100 and a GF Value™ of NPR231.80 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,397 Banks companies, Kumari Bank ranks better than 88.33% 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:KBL' s Beneish M-Score Range Over the Past 10 Years
Min: -26.42   Med: -2.61   Max: -2.09
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Kumari Bank was -2.09. The lowest was -26.42. And the median was -2.61.

XNEP:KBL
77GF Score
Kumari Bank Ltd XNEP:KBL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Kumari 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 Kumari 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 * 1.0027+0.892 * 1.0411+0.115 * 0.7842
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0678+4.679 * -0.046454-0.327 * 1.1623
=-2.75

* 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 (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was NPR0 Mil.
Revenue was NPR13,912 Mil.
Gross Profit was NPR13,912 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR409,938 Mil.
Property, Plant and Equipment(Net PPE) was NPR4,293 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR857 Mil.
Selling, General, & Admin. Expense(SGA) was NPR643 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR18,279 Mil.
Net Income was NPR159 Mil.
Gross Profit was NPR0 Mil.
Cash Flow from Operations was NPR19,202 Mil.
 Total Receivables was NPR0 Mil.
Revenue was NPR13,363 Mil.
Gross Profit was NPR13,363 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR380,757 Mil.
Property, Plant and Equipment(Net PPE) was NPR5,018 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR753 Mil.
Selling, General, & Admin. Expense(SGA) was NPR578 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR14,607 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 / 13911.861) / (0 / 13362.813)
=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)
=(13362.813 / 13362.813) / (13911.861 / 13911.861)
=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 + 4293.212) / 409938.44) / (1 - (0 + 5017.766) / 380757.023)
=0.989527 / 0.986822
=1.0027

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
=13911.861 / 13362.813
=1.0411

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))
=(753.029 / (753.029 + 5017.766)) / (856.947 / (856.947 + 4293.212))
=0.13049 / 0.166392
=0.7842

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)
=(642.552 / 13911.861) / (577.985 / 13362.813)
=0.046187 / 0.043253
=1.0678

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)
=((18279.454 + 0) / 409938.44) / ((14606.809 + 0) / 380757.023)
=0.044591 / 0.038363
=1.1623

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
=(158.57 - 0 - 19202.028) / 409938.44
=-0.046454

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.

Kumari Bank has a M-score of -2.75 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 -2.75 mean?
Kumari Bank (XNEP:KBL) has a Beneish M-Score of -2.75 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Kumari Bank and its competitors. According to the industry distribution chart, Kumari Bank ranks #163 out of 1397 companies in the Banks industry, placing it in the top 11.7%.
Is Kumari Bank's Beneish M-Score too high?
Kumari Bank's current Beneish M-Score is -2.75. Based on the distribution chart, Kumari Bank ranks #163 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Kumari Bank has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kumari Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Kumari Bank ranks #163 out of 1397 companies for Beneish M-Score. This places Kumari Bank in the top 12% 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 Kumari Bank and its competitors. Kumari Bank's current Beneish M-Score is -2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumari Bank stock overvalued right now?
Based on GuruFocus' analysis, Kumari Bank (XNEP:KBL) is currently considered Fairly Valued. The stock's GF Value™ is NPR231.80, compared to a current price of NPR210.10 — trading 9.4% below its estimated fair value. The current Beneish M-Score is -2.75. Kumari Bank's overall GF Score™ is 77/100 with 1 warning sign 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 Kumari Bank (XNEP:KBL), the current Beneish M-Score is -2.75 as of Jul. 02, 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 Kumari Bank (XNEP:KBL) Overvalued in 2026?

Based on GuruFocus' analysis, Kumari Bank stock appears to be undervalued. The current stock price of NPR210.10 is trading 9.4% below its estimated GF Value™ of NPR231.80. GuruFocus considers Kumari Bank to be Fairly Valued.

Key valuation signals for XNEP:KBL:

  • Beneish M-Score: -2.75
  • GF Value™: NPR231.80 vs. price of NPR210.10 (9.4% below fair value)
  • GF Score™: 77/100 with 1 warning sign

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

Kumari Bank Business Description

Address Thirbam Sadak, Tangal, Kathmandu, NPL
Kumari Bank Ltd provides banking services in Nepal, including loans, deposits, trade finance, card services, remittances, e-commerce, and bullion trading with technological support. Its operating segments are Banking, Cards, Remittance Services, Digital Banking, and Treasury. The Banking segment includes loans, deposits, trade operations, and related services. Cards cover credit, debit, and prepaid card products along with digital payment services. Remittance services include inward and outward transfers, while Treasury involves investment activities, foreign exchange trading, and liquidity management. The majority of revenue is generated from the Banking segment.
77GF Score

Get the complete analysis for XNEP:KBL

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

NPR210.10
Price
NPR231.80
GF Value