Everbright Securities Co (FRA:0EC) Beneish M-Score: -2.46 (As of Jun. 24, 2026)


FRA:0EC Everbright Securities Co Ltd FRA:0EC
48 GF Score
Price €0.85
GF Value €1.13
! 3 Warning Signs
View Full Analysis

What is Everbright Securities Co Beneish M-Score?

Everbright Securities Co FRA:0EC -2.30% 48 Beneish M-Score is -2.46 as of Jun. 24, 2026. GuruFocus rates FRA:0EC with a GF Score™ of 48/100 and a GF Value™ of €1.13. The stock has 3 warning signs investors should review. Among 702 Capital Markets companies, Everbright Securities Co ranks better than 62.68% 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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:0EC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Med: -2.48   Max: 49.73
Current: -2.46

During the past 13 years, the highest Beneish M-Score of Everbright Securities Co was 49.73. The lowest was -3.34. And the median was -2.48.

FRA:0EC
48GF Score
Everbright Securities Co Ltd FRA:0EC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Everbright Securities Co 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 Everbright Securities Co 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 * 1.001+0.892 * 1.0933+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.928+4.679 * -0.025271-0.327 * 1.0659
=-2.52

* 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 €0 Mil.
Revenue was 386.93 + 317.77 + 361.118 + 312.863 = €1,379 Mil.
Gross Profit was 386.93 + 317.77 + 361.118 + 312.863 = €1,379 Mil.
Total Current Assets was €0 Mil.
Total Assets was €41,222 Mil.
Property, Plant and Equipment(Net PPE) was €173 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €164 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €9,726 Mil.
Net Income was 146.362 + 126.854 + 119.013 + 104.284 = €497 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -36.995 + 441.746 + 954.133 + 179.363 = €1,538 Mil.
 Total Receivables was €0 Mil.
Revenue was 317.652 + 414.587 + 280.859 + 247.893 = €1,261 Mil.
Gross Profit was 317.652 + 414.587 + 280.859 + 247.893 = €1,261 Mil.
Total Current Assets was €0 Mil.
Total Assets was €36,975 Mil.
Property, Plant and Equipment(Net PPE) was €192 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €161 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €8,184 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 / 1378.681) / (0 / 1260.991)
=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)
=(1260.991 / 1260.991) / (1378.681 / 1378.681)
=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 + 172.938) / 41222.436) / (1 - (0 + 192.265) / 36975.013)
=0.995805 / 0.9948
=1.001

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
=1378.681 / 1260.991
=1.0933

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 / (0 + 192.265)) / (0 / (0 + 172.938))
=0 / 0
=1

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)
=(163.592 / 1378.681) / (161.229 / 1260.991)
=0.118658 / 0.127859
=0.928

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)
=((9725.526 + 0) / 41222.436) / ((8184.2 + 0) / 36975.013)
=0.235928 / 0.221344
=1.0659

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
=(496.513 - 0 - 1538.247) / 41222.436
=-0.025271

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.

Everbright Securities Co has a M-score of -2.52 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 -2.46 mean?
Everbright Securities Co (FRA:0EC) has a Beneish M-Score of -2.46 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Everbright Securities Co and its competitors. According to the industry distribution chart, Everbright Securities Co ranks #262 out of 702 companies in the Capital Markets industry, placing it in the top 37.3%.
Is Everbright Securities Co's Beneish M-Score too high?
Everbright Securities Co's current Beneish M-Score is -2.46. Based on the distribution chart, Everbright Securities Co ranks #262 out of 702 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Everbright Securities Co has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Everbright Securities Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Everbright Securities Co ranks #262 out of 702 companies for Beneish M-Score. This puts Everbright Securities Co in the upper 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 Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Everbright Securities Co and its competitors. Everbright Securities Co's current Beneish M-Score is -2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Everbright Securities Co stock overvalued right now?
Everbright Securities Co (FRA:0EC) has a current Beneish M-Score of -2.46. The stock's GF Value™ is €1.13, compared to a current price of €0.85 — trading 24.8% below its estimated fair value. The current Beneish M-Score is -2.46. Everbright Securities Co's overall GF Score™ is 48/100 with 3 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 Everbright Securities Co (FRA:0EC), the current Beneish M-Score is -2.46 as of Jun. 24, 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 Everbright Securities Co (FRA:0EC) Overvalued in 2026?

Based on GuruFocus' analysis, Everbright Securities Co stock appears to be undervalued. The current stock price of €0.85 is trading 24.8% below its estimated GF Value™ of €1.13.

Key valuation signals for FRA:0EC:

  • Beneish M-Score: -2.46
  • GF Value™: €1.13 vs. price of €0.85 (24.8% below fair value)
  • GF Score™: 48/100 with 3 warning signs

No single metric tells the full story. See the FRA:0EC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Everbright Securities Co Business Description

Other Exchanges 06178:Hong Kong601788:China
Address 108 Gloucester Road, 12th Floor, Everbright Centre, Wan Chai, Hong Kong, HKG
Everbright Securities Co Ltd is a China-based company engaged in providing brokerage and investment consulting services. The company focuses on market entities such as retail clients, institutional clients, and corporate clients, using capital intermediation as a link to build six business clusters: wealth management, corporate finance, institutional clients, investment trading, asset management, and equity investment. The company's segments include Wealth management business, Corporate financing business, Institutional customer business, Investment trading business, Asset management business, and Equity investment business. It generates the majority of its revenue from the wealth management business segment.
48GF Score

Get the complete analysis for FRA:0EC

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

€0.85
Price
€1.13
GF Value