NMB Microfinance Bittiyanstha (XNEP:NMBMF) Beneish M-Score: -1.82 (As of Jun. 29, 2026)


XNEP:NMBMF NMB Microfinance Bittiya Sanstha Ltd XNEP:NMBMF
53 GF Score
Price NPR622.00
GF Value NPR2,188.06
Valuation Possible Value Trap
! 2 Warning Signs
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What is NMB Microfinance Bittiyanstha Beneish M-Score?

NMB Microfinance Bittiyanstha XNEP:NMBMF -1.89% 53 Beneish M-Score is -1.82 as of Jun. 29, 2026. GuruFocus rates XNEP:NMBMF with a GF Score™ of 53/100 and a GF Value™ of NPR2,188.06 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 483 Credit Services companies, NMB Microfinance Bittiyanstha ranks worse than 62.94% 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 -1.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:NMBMF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -2.1   Max: -0.43
Current: -1.82

During the past 11 years, the highest Beneish M-Score of NMB Microfinance Bittiyanstha was -0.43. The lowest was -3.06. And the median was -2.10.

XNEP:NMBMF
53GF Score
NMB Microfinance Bittiya Sanstha Ltd XNEP:NMBMF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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NMB Microfinance Bittiyanstha 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 NMB Microfinance Bittiyanstha 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 * 1.0064+0.892 * 1.6025+0.115 * 0.8096
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6048+4.679 * 0.019116-0.327 * 1.0475
=-1.82

* 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 (Jul25) TTM:Last Year (Jul24) TTM:
Total Receivables was NPR0.0 Mil.
Revenue was NPR497.6 Mil.
Gross Profit was NPR497.6 Mil.
Total Current Assets was NPR0.0 Mil.
Total Assets was NPR7,081.4 Mil.
Property, Plant and Equipment(Net PPE) was NPR80.9 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR31.6 Mil.
Selling, General, & Admin. Expense(SGA) was NPR41.5 Mil.
Total Current Liabilities was NPR0.0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR4,399.5 Mil.
Net Income was NPR14.8 Mil.
Gross Profit was NPR0.0 Mil.
Cash Flow from Operations was NPR-120.6 Mil.
 Total Receivables was NPR0.0 Mil.
Revenue was NPR310.5 Mil.
Gross Profit was NPR310.5 Mil.
Total Current Assets was NPR0.0 Mil.
Total Assets was NPR5,855.8 Mil.
Property, Plant and Equipment(Net PPE) was NPR103.5 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR30.4 Mil.
Selling, General, & Admin. Expense(SGA) was NPR42.8 Mil.
Total Current Liabilities was NPR0.0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR3,473.3 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 / 497.58) / (0 / 310.506)
=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)
=(310.506 / 310.506) / (497.58 / 497.58)
=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 + 80.943) / 7081.391) / (1 - (0 + 103.468) / 5855.814)
=0.98857 / 0.982331
=1.0064

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
=497.58 / 310.506
=1.6025

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))
=(30.429 / (30.429 + 103.468)) / (31.585 / (31.585 + 80.943))
=0.227257 / 0.280686
=0.8096

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)
=(41.469 / 497.58) / (42.79 / 310.506)
=0.083341 / 0.137807
=0.6048

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)
=((4399.517 + 0) / 7081.391) / ((3473.25 + 0) / 5855.814)
=0.621279 / 0.593128
=1.0475

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
=(14.764 - 0 - -120.605) / 7081.391
=0.019116

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.

NMB Microfinance Bittiyanstha has a M-score of -1.82 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 -1.82 mean?
NMB Microfinance Bittiyanstha (XNEP:NMBMF) has a Beneish M-Score of -1.82 as of Jun. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on NMB Microfinance Bittiyanstha and its competitors. According to the industry distribution chart, NMB Microfinance Bittiyanstha ranks #304 out of 483 companies in the Credit Services industry, placing it in the top 62.9%.
Is NMB Microfinance Bittiyanstha's Beneish M-Score too high?
NMB Microfinance Bittiyanstha's current Beneish M-Score is -1.82. Based on the distribution chart, NMB Microfinance Bittiyanstha ranks #304 out of 483 companies in the Credit Services industry, which is below the industry midpoint. Overall, NMB Microfinance Bittiyanstha has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NMB Microfinance Bittiyanstha's Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, NMB Microfinance Bittiyanstha ranks #304 out of 483 companies for Beneish M-Score. This places NMB Microfinance Bittiyanstha 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 NMB Microfinance Bittiyanstha and its competitors. NMB Microfinance Bittiyanstha's current Beneish M-Score is -1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMB Microfinance Bittiyanstha stock overvalued right now?
Based on GuruFocus' analysis, NMB Microfinance Bittiyanstha (XNEP:NMBMF) is currently considered Possible Value Trap. The stock's GF Value™ is NPR2,188.06, compared to a current price of NPR622.00 — trading 71.6% below its estimated fair value. The current Beneish M-Score is -1.82. NMB Microfinance Bittiyanstha's overall GF Score™ is 53/100 with 2 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 NMB Microfinance Bittiyanstha (XNEP:NMBMF), the current Beneish M-Score is -1.82 as of Jun. 29, 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 NMB Microfinance Bittiyanstha (XNEP:NMBMF) Overvalued in 2026?

Based on GuruFocus' analysis, NMB Microfinance Bittiyanstha stock appears to be undervalued. The current stock price of NPR622.00 is trading 71.6% below its estimated GF Value™ of NPR2,188.06. GuruFocus considers NMB Microfinance Bittiyanstha to be Possible Value Trap.

Key valuation signals for XNEP:NMBMF:

  • Beneish M-Score: -1.82
  • GF Value™: NPR2,188.06 vs. price of NPR622.00 (71.6% below fair value)
  • GF Score™: 53/100 with 2 warning signs

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

NMB Microfinance Bittiyanstha Business Description

Address Street 3, New Road, Zenex Plaza, Kaski, Pokhara, NPL
NMB Microfinance Bittiya Sanstha Ltd is a Nepal-based financial institution engaged in providing microfinance services to low-income and underserved households across the Hilly, Mountain, and Terai regions of Nepal. The company mainly serves individuals in the informal sector, focusing on financial inclusion and income-generating activities. Its services include micro-lending, savings and deposit products, and microinsurance.
53GF Score

Get the complete analysis for XNEP:NMBMF

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

NPR622.00
Price
NPR2,188.06
GF Value