Bank of Zhengzhou Co (FRA:3BZ) Beneish M-Score: -2.60 (As of Jun. 26, 2026)


FRA:3BZ Bank of Zhengzhou Co Ltd FRA:3BZ
34 GF Score
Price €0.09
GF Value €0.08
! 6 Warning Signs
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What is Bank of Zhengzhou Co Beneish M-Score?

Bank of Zhengzhou Co FRA:3BZ -4.06% 34 Beneish M-Score is -2.60 as of Jun. 26, 2026. GuruFocus rates FRA:3BZ with a GF Score™ of 34/100 and a GF Value™ of €0.08. The stock has 6 warning signs investors should review. Among 1,397 Banks companies, Bank of Zhengzhou Co ranks better than 80.6% 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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:3BZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Med: -2.4   Max: -2.12
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Bank of Zhengzhou Co was -2.12. The lowest was -3.02. And the median was -2.40.

FRA:3BZ
34GF Score
Bank of Zhengzhou Co Ltd FRA:3BZ
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank of Zhengzhou 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 Bank of Zhengzhou 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 * 1.0007+0.892 * 0.8654+0.115 * 1.0185
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0077+4.679 * -0.026838-0.327 * 0.9093
=-2.69

* 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 €0.0 Mil.
Revenue was €1,329.0 Mil.
Gross Profit was €1,329.0 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €90,171.8 Mil.
Property, Plant and Equipment(Net PPE) was €423.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €50.9 Mil.
Selling, General, & Admin. Expense(SGA) was €119.1 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €13,403.6 Mil.
Net Income was €229.8 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €2,649.8 Mil.
 Total Receivables was €0.0 Mil.
Revenue was €1,535.6 Mil.
Gross Profit was €1,535.6 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €88,718.0 Mil.
Property, Plant and Equipment(Net PPE) was €480.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €58.9 Mil.
Selling, General, & Admin. Expense(SGA) was €136.5 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €14,502.7 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 / 1328.971) / (0 / 1535.603)
=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)
=(1535.603 / 1535.603) / (1328.971 / 1328.971)
=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 + 423.704) / 90171.776) / (1 - (0 + 480.72) / 88717.954)
=0.995301 / 0.994581
=1.0007

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
=1328.971 / 1535.603
=0.8654

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))
=(58.92 / (58.92 + 480.72)) / (50.878 / (50.878 + 423.704))
=0.109184 / 0.107206
=1.0185

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)
=(119.061 / 1328.971) / (136.524 / 1535.603)
=0.089589 / 0.088906
=1.0077

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)
=((13403.634 + 0) / 90171.776) / ((14502.726 + 0) / 88717.954)
=0.148646 / 0.16347
=0.9093

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
=(229.773 - 0 - 2649.824) / 90171.776
=-0.026838

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.

Bank of Zhengzhou Co has a M-score of -2.69 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 -2.60 mean?
Bank of Zhengzhou Co (FRA:3BZ) has a Beneish M-Score of -2.60 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank of Zhengzhou Co and its competitors. According to the industry distribution chart, Bank of Zhengzhou Co ranks #271 out of 1397 companies in the Banks industry, placing it in the top 19.4%.
Is Bank of Zhengzhou Co's Beneish M-Score too high?
Bank of Zhengzhou Co's current Beneish M-Score is -2.60. Based on the distribution chart, Bank of Zhengzhou Co ranks #271 out of 1397 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Bank of Zhengzhou Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Bank of Zhengzhou Co's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Bank of Zhengzhou Co ranks #271 out of 1397 companies for Beneish M-Score. This places Bank of Zhengzhou Co in the top 19% 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 Bank of Zhengzhou Co and its competitors. Bank of Zhengzhou Co's current Beneish M-Score is -2.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Zhengzhou Co stock overvalued right now?
Bank of Zhengzhou Co (FRA:3BZ) has a current Beneish M-Score of -2.60. The stock's GF Value™ is €0.08, compared to a current price of €0.09 — trading 18.1% above its estimated fair value. The current Beneish M-Score is -2.60. Bank of Zhengzhou Co's overall GF Score™ is 34/100 with 6 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 Bank of Zhengzhou Co (FRA:3BZ), the current Beneish M-Score is -2.60 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 Bank of Zhengzhou Co (FRA:3BZ) Overvalued in 2026?

Based on GuruFocus' analysis, Bank of Zhengzhou Co stock appears to be overvalued. The current stock price of €0.09 is trading 18.1% above its estimated GF Value™ of €0.08.

Key valuation signals for FRA:3BZ:

  • Beneish M-Score: -2.60
  • GF Value™: €0.08 vs. price of €0.09 (18.1% above fair value)
  • GF Score™: 34/100 with 6 warning signs

No single metric tells the full story. See the FRA:3BZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bank of Zhengzhou Co Business Description

Other Exchanges 06196:Hong Kong002936:China
Address 248 Queen\'s Road East, 40th Floor, Dah Sing Financial Centre, Wang Chai, Hong Kong, HKG
Bank of Zhengzhou Co Ltd lays emphasis on commercial banking operations in China. The bank functions through the corporate, retail and treasury banking divisions. The corporate banking segment is the majority revenue generating segment for the company with a range of financial products and services tailor-made for corporations, government agencies and financial institutions; The retail banking segment provides similar services to individual customers; The treasury operations comprise of including interbank money market transactions, repurchases transactions and investments and Others. The company derives its revenue from the PRC.
34GF Score

Get the complete analysis for FRA:3BZ

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

€0.09
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€0.08
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