ZhongAn Online P&C Insurance Co (FRA:1ZO) Beneish M-Score: -2.48 (As of Jun. 29, 2026)


FRA:1ZO ZhongAn Online P&C Insurance Co Ltd FRA:1ZO
84 GF Score
Price €0.98
GF Value €1.78
Valuation Significantly Undervalued
! 2 Warning Signs
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What is ZhongAn Online P&C Insurance Co Beneish M-Score?

ZhongAn Online P&C Insurance Co FRA:1ZO -2.87% 84 Beneish M-Score is -2.48 as of Jun. 29, 2026. GuruFocus rates FRA:1ZO with a GF Score™ of 84/100 and a GF Value™ of €1.78 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 402 Insurance companies, ZhongAn Online P&C Insurance Co ranks worse than 51.24% 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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ZhongAn Online P&C Insurance Co's Beneish M-Score or its related term are showing as below:

FRA:1ZO' s Beneish M-Score Range Over the Past 10 Years
Min: -6.12   Med: -2.53   Max: -1.9
Current: -2.48

During the past 12 years, the highest Beneish M-Score of ZhongAn Online P&C Insurance Co was -1.90. The lowest was -6.12. And the median was -2.53.

FRA:1ZO
84GF Score
ZhongAn Online P&C Insurance Co Ltd FRA:1ZO
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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ZhongAn Online P&C Insurance 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 ZhongAn Online P&C Insurance 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 * 0.9021+0.528 * 1+0.404 * 0.9833+0.892 * 0.9582+0.115 * 1.7851
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0791+4.679 * -0.052907-0.327 * 0.3774
=-2.58

* 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 €170 Mil.
Revenue was €4,216 Mil.
Gross Profit was €4,216 Mil.
Total Current Assets was €0 Mil.
Total Assets was €5,664 Mil.
Property, Plant and Equipment(Net PPE) was €193 Mil.
Depreciation, Depletion and Amortization(DDA) was €38 Mil.
Selling, General, & Admin. Expense(SGA) was €966 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €336 Mil.
Net Income was €134 Mil.
Gross Profit was €4 Mil.
Cash Flow from Operations was €429 Mil.
 Total Receivables was €197 Mil.
Revenue was €4,400 Mil.
Gross Profit was €4,400 Mil.
Total Current Assets was €0 Mil.
Total Assets was €5,940 Mil.
Property, Plant and Equipment(Net PPE) was €105 Mil.
Depreciation, Depletion and Amortization(DDA) was €43 Mil.
Selling, General, & Admin. Expense(SGA) was €935 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €933 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)
=(170.206 / 4216.143) / (196.899 / 4399.893)
=0.04037 / 0.044751
=0.9021

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)
=(4399.893 / 4399.893) / (4216.143 / 4216.143)
=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 + 192.746) / 5663.623) / (1 - (0 + 104.614) / 5939.92)
=0.965968 / 0.982388
=0.9833

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
=4216.143 / 4399.893
=0.9582

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))
=(43.138 / (43.138 + 104.614)) / (37.689 / (37.689 + 192.746))
=0.291962 / 0.163556
=1.7851

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)
=(966.465 / 4216.143) / (934.638 / 4399.893)
=0.22923 / 0.212423
=1.0791

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)
=((335.818 + 0) / 5663.623) / ((933.343 + 0) / 5939.92)
=0.059294 / 0.157131
=0.3774

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
=(133.571 - 4.488 - 428.726) / 5663.623
=-0.052907

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.

ZhongAn Online P&C Insurance Co has a M-score of -2.58 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 -2.48 mean?
ZhongAn Online P&C Insurance Co (FRA:1ZO) has a Beneish M-Score of -2.48 as of Jun. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on ZhongAn Online P&C Insurance Co and its competitors. According to the industry distribution chart, ZhongAn Online P&C Insurance Co ranks #206 out of 402 companies in the Insurance industry, placing it in the top 51.2%.
Is ZhongAn Online P&C Insurance Co's Beneish M-Score too high?
ZhongAn Online P&C Insurance Co's current Beneish M-Score is -2.48. Based on the distribution chart, ZhongAn Online P&C Insurance Co ranks #206 out of 402 companies in the Insurance industry, which is below the industry midpoint. Overall, ZhongAn Online P&C Insurance Co has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZhongAn Online P&C Insurance Co's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, ZhongAn Online P&C Insurance Co ranks #206 out of 402 companies for Beneish M-Score. This places ZhongAn Online P&C Insurance Co 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 ZhongAn Online P&C Insurance Co and its competitors. ZhongAn Online P&C Insurance Co's current Beneish M-Score is -2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZhongAn Online P&C Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, ZhongAn Online P&C Insurance Co (FRA:1ZO) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.78, compared to a current price of €0.98 — trading 44.9% below its estimated fair value. The current Beneish M-Score is -2.48. ZhongAn Online P&C Insurance Co's overall GF Score™ is 84/100 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 ZhongAn Online P&C Insurance Co (FRA:1ZO), the current Beneish M-Score is -2.48 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 ZhongAn Online P&C Insurance Co (FRA:1ZO) Overvalued in 2026?

Based on GuruFocus' analysis, ZhongAn Online P&C Insurance Co stock appears to be undervalued. The current stock price of €0.98 is trading 44.9% below its estimated GF Value™ of €1.78. GuruFocus considers ZhongAn Online P&C Insurance Co to be Significantly Undervalued.

Key valuation signals for FRA:1ZO:

  • Beneish M-Score: -2.48
  • GF Value™: €1.78 vs. price of €0.98 (44.9% below fair value)
  • GF Score™: 84/100 with 2 warning signs

No single metric tells the full story. See the FRA:1ZO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

ZhongAn Online P&C Insurance Co Business Description

Address 219 Yuanmingyuan Road, Shanghai, CHN
ZhongAn Online P&C Insurance Co Ltd is principally engaged in Fintech business, which mainly provides internet insurance services and insurance information technology services to customers. Its operating segments includes; Insurance, Technology, Banking, and Others. The insurance segment offers online property and casualty insurance and services in the PRC and generates majority of the company's revenue.
84GF Score

Get the complete analysis for FRA:1ZO

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

€0.98
Price
€1.78
GF Value