Lion Selection Group (ASX:LSX) Beneish M-Score: 7.91 (As of Jun. 26, 2026) — Near Median


ASX:LSX Lion Selection Group Ltd ASX:LSX
51 GF Score
Price A$0.83
GF Value A$9.16
Valuation Possible Value Trap
! 2 Warning Signs
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What is Lion Selection Group Beneish M-Score?

Lion Selection Group ASX:LSX 51 Beneish M-Score is 7.91 as of Jun. 26, 2026, which is at its 10-year median of 7.91. GuruFocus rates ASX:LSX with a GF Score™ of 51/100 and a GF Value™ of A$9.16 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 685 Metals & Mining companies, Lion Selection Group ranks worse than 95.62% 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.

Warning Sign:

Beneish M-Score 7.91 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ASX:LSX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.32   Med: 7.91   Max: 24.21
Current: 7.91

During the past 13 years, the highest Beneish M-Score of Lion Selection Group was 24.21. The lowest was -2.32. And the median was 7.91.

ASX:LSX
51GF Score
Lion Selection Group Ltd ASX:LSX
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Lion Selection Group 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 Lion Selection Group 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 * 0.1895+0.528 * 1+0.404 * 1.0014+0.892 * 11.5162+0.115 * 0.7052
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1721+4.679 * 0.288207-0.327 * 0.0978
=7.91

* 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 A$2.65 Mil.
Revenue was A$46.25 Mil.
Gross Profit was A$46.25 Mil.
Total Current Assets was A$0.00 Mil.
Total Assets was A$133.06 Mil.
Property, Plant and Equipment(Net PPE) was A$0.11 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.09 Mil.
Selling, General, & Admin. Expense(SGA) was A$2.14 Mil.
Total Current Liabilities was A$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.02 Mil.
Net Income was A$39.17 Mil.
Gross Profit was A$0.00 Mil.
Cash Flow from Operations was A$0.83 Mil.
 Total Receivables was A$1.21 Mil.
Revenue was A$4.02 Mil.
Gross Profit was A$4.02 Mil.
Total Current Assets was A$0.00 Mil.
Total Assets was A$89.07 Mil.
Property, Plant and Equipment(Net PPE) was A$0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was A$0.09 Mil.
Selling, General, & Admin. Expense(SGA) was A$1.08 Mil.
Total Current Liabilities was A$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.12 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)
=(2.649 / 46.249) / (1.214 / 4.016)
=0.057277 / 0.302291
=0.1895

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)
=(4.016 / 4.016) / (46.249 / 46.249)
=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 + 0.113) / 133.057) / (1 - (0 + 0.203) / 89.065)
=0.999151 / 0.997721
=1.0014

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
=46.249 / 4.016
=11.5162

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))
=(0.094 / (0.094 + 0.203)) / (0.092 / (0.092 + 0.113))
=0.316498 / 0.44878
=0.7052

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)
=(2.137 / 46.249) / (1.078 / 4.016)
=0.046206 / 0.268426
=0.1721

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)
=((0.018 + 0) / 133.057) / ((0.123 + 0) / 89.065)
=0.000135 / 0.001381
=0.0978

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
=(39.173 - 0 - 0.825) / 133.057
=0.288207

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.

Lion Selection Group has a M-score of 7.91 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 7.91 mean?
Lion Selection Group (ASX:LSX) has a Beneish M-Score of 7.91 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lion Selection Group and its competitors. This is near median its historical median of 7.91. According to the industry distribution chart, Lion Selection Group ranks #655 out of 685 companies in the Metals & Mining industry, placing it in the top 95.6%.
Is Lion Selection Group's Beneish M-Score too high?
Lion Selection Group's current Beneish M-Score of 7.91 is near median its 10-year median of 7.91. Based on the distribution chart, Lion Selection Group ranks #655 out of 685 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Lion Selection Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lion Selection Group's Beneish M-Score compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Lion Selection Group ranks #655 out of 685 companies for Beneish M-Score. This places Lion Selection Group 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 Metals & Mining company?
A good Beneish M-Score depends on the Metals & Mining 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 Lion Selection Group and its competitors. Lion Selection Group's current Beneish M-Score is 7.91, which is near median its own 10-year median of 7.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lion Selection Group stock overvalued right now?
Based on GuruFocus' analysis, Lion Selection Group (ASX:LSX) is currently considered Possible Value Trap. The stock's GF Value™ is A$9.16, compared to a current price of A$0.83 — trading 91% below its estimated fair value. The current Beneish M-Score is 7.91, which is near median its 10-year median of 7.91. Lion Selection Group's overall GF Score™ is 51/100 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 Lion Selection Group (ASX:LSX), the current Beneish M-Score is 7.91 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 Lion Selection Group (ASX:LSX) Overvalued in 2026?

Based on GuruFocus' analysis, Lion Selection Group stock appears to be undervalued. The current stock price of A$0.83 is trading 91% below its estimated GF Value™ of A$9.16. GuruFocus considers Lion Selection Group to be Possible Value Trap.

Key valuation signals for ASX:LSX:

  • Beneish M-Score: 7.91 (near median its 10-year median of 7.91)
  • GF Value™: A$9.16 vs. price of A$0.83 (91% below fair value)
  • GF Score™: 51/100 with 2 warning signs

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

Lion Selection Group Business Description

Address 175 Flinders Street, Level 2, Melbourne, VIC, AUS, 3000
Lion Selection Group Ltd is a mining investment company. The company invests in junior resource companies, providing venture capital to carefully selected mining and exploration companies with development projects. It invests only in small and medium mining and exploration companies with gold and base metal activities in Australia, Africa, and Asia. Its project includes the Pani Gold Project.
51GF Score

Get the complete analysis for ASX:LSX

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

A$0.83
Price
A$9.16
GF Value