CMHF (Community Heritage Financial) Beneish M-Score: -2.54 (As of Aug. 02, 2026)

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CMHF Community Heritage Financial Inc CMHF
52 GF Score
Price $42.00
GF Value $27.62
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Community Heritage Financial Beneish M-Score?

Community Heritage Financial CMHF 52 Beneish M-Score is -2.54 as of Aug. 02, 2026. GuruFocus rates CMHF with a GF Score™ of 52/100 and a GF Value™ of $27.62 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,392 Banks companies, Community Heritage Financial ranks better than 75.36% 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CMHF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.72   Med: -2.47   Max: -2.13
Current: -2.54

During the past 7 years, the highest Beneish M-Score of Community Heritage Financial was -2.13. The lowest was -2.72. And the median was -2.47.

CMHF
52GF Score
Community Heritage Financial Inc CMHF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Community Heritage Financial 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 Community Heritage Financial 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 * 0.9226+0.528 * 1+0.404 * 0.9972+0.892 * 1.1678+0.115 * 1.5082
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9534+4.679 * -0.003585-0.327 * 1.5612
=-2.54

* 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 $3.40 Mil.
Revenue was $39.27 Mil.
Gross Profit was $39.27 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,129.08 Mil.
Property, Plant and Equipment(Net PPE) was $11.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.28 Mil.
Selling, General, & Admin. Expense(SGA) was $1.65 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $50.14 Mil.
Net Income was $8.65 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $12.70 Mil.
 Total Receivables was $3.15 Mil.
Revenue was $33.63 Mil.
Gross Profit was $33.63 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,020.38 Mil.
Property, Plant and Equipment(Net PPE) was $7.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.35 Mil.
Selling, General, & Admin. Expense(SGA) was $1.48 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $29.03 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)
=(3.397 / 39.273) / (3.153 / 33.631)
=0.086497 / 0.093753
=0.9226

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)
=(33.631 / 33.631) / (39.273 / 39.273)
=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 + 11.438) / 1129.08) / (1 - (0 + 7.545) / 1020.38)
=0.98987 / 0.992606
=0.9972

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
=39.273 / 33.631
=1.1678

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))
=(1.348 / (1.348 + 7.545)) / (1.278 / (1.278 + 11.438))
=0.15158 / 0.100503
=1.5082

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)
=(1.651 / 39.273) / (1.483 / 33.631)
=0.042039 / 0.044096
=0.9534

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)
=((50.141 + 0) / 1129.08) / ((29.026 + 0) / 1020.38)
=0.044409 / 0.028446
=1.5612

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
=(8.653 - 0 - 12.701) / 1129.08
=-0.003585

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.

Community Heritage Financial has a M-score of -2.54 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 -2.54 mean?
Community Heritage Financial (CMHF) has a Beneish M-Score of -2.54 as of Aug. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Community Heritage Financial and its competitors. According to the industry distribution chart, Community Heritage Financial ranks #343 out of 1392 companies in the Banks industry, placing it in the top 24.6%.
Is Community Heritage Financial's Beneish M-Score too high?
Community Heritage Financial's current Beneish M-Score is -2.54. Based on the distribution chart, Community Heritage Financial ranks #343 out of 1392 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Community Heritage Financial has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Community Heritage Financial's Beneish M-Score compare to HYNE and BOTJ?
According to the Banks industry distribution chart, Community Heritage Financial ranks #343 out of 1392 companies for Beneish M-Score. This places Community Heritage Financial in the top 25% 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 Community Heritage Financial and its competitors. Community Heritage Financial's current Beneish M-Score is -2.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Community Heritage Financial stock overvalued right now?
Based on GuruFocus' analysis, Community Heritage Financial (CMHF) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.62, compared to a current price of $42.00 — trading 52.1% above its estimated fair value. The current Beneish M-Score is -2.54. Community Heritage Financial's overall GF Score™ is 52/100 with 7 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 Community Heritage Financial (CMHF), the current Beneish M-Score is -2.54 as of Aug. 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 Community Heritage Financial (CMHF) Overvalued in 2026?

Based on GuruFocus' analysis, Community Heritage Financial stock appears to be overvalued. The current stock price of $42.00 is trading 52.1% above its estimated GF Value™ of $27.62. GuruFocus considers Community Heritage Financial to be Significantly Overvalued.

Key valuation signals for CMHF:

  • Beneish M-Score: -2.54
  • GF Value™: $27.62 vs. price of $42.00 (52.1% above fair value)
  • GF Score™: 52/100 with 7 warning signs

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

Community Heritage Financial Business Description

Address 24 West Main Street, P.O. Box 75, Middletown, MD, USA, 21769
Community Heritage Financial Inc is an independent and community-oriented financial institution offering a full range of retail and commercial banking services to individuals and businesses in its market area. Its deposit products are demand, savings, and time deposits, and its lending products are real estate mortgages, commercial business loans and installment loans. In addition to retail and commercial banking services offered to individuals and businesses, common to community-oriented financial institutions, the company operates a mortgage banking business segment. The mortgage banking segment engages in the origination of residential mortgages for sale into the secondary market, unlike the company's other deposit and loan activities, which are conducted for Investment purposes.
52GF Score

Get the complete analysis for CMHF

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

$42.00
Price
$27.62
GF Value