AdageneFRA:978 +3.11%42 Beneish M-Score is 61.93 as of Jun. 25, 2026, which is 1220% above its 10-year median of 4.69. GuruFocus rates FRA:978 with a GF Score™ of 42/100 and a GF Value™ of €11.04. The stock has 5 warning signs investors should review. Among 831 Biotechnology companies, Adagene ranks worse than 98.32% on this metric.
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 61.93 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for Adagene's Beneish M-Score or its related term are showing as below:
FRA:978'
s Beneish M-Score Range Over the Past 10 Years
Min: -23.77 Med: 4.69 Max: 61.93
Current: 61.93
During the past 8 years, the highest Beneish M-Score of Adagene was 61.93. The lowest was -23.77. And the median was 4.69.
Adagene Beneish M-Score Related Terms
Adagene Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Adagene's Beneish M-Score can be seen below:
* 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.
FRA:978 vs CNTX, TARA, NVCT: Beneish M-Score Comparison
For the Biotechnology subindustry, Adagene's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Adagene Beneish M-Score vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Adagene's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Adagene's Beneish M-Score falls into.
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 Adagene 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 * 0.0281
+
0.528 * 1
+
0.404 * 0.3643
+
0.892 * 66.8469
+
0.115 * 0.9847
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.013
+
4.679 * -0.046531
-
0.327 * 0.7761
=
55.13
* 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.
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.
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))
=
(0.897 / (0.897 + 1.346))
/
(0.504 / (0.504 + 0.737))
=
0.399911
/
0.406124
=
0.9847
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
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
=
(-15.038 - 1.443
-
-13.371)
/
66.837
=
-0.046531
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.
Adagene has a M-score of 55.13 signals that the company is likely to be a manipulator.
Adagene (FRA:978) has a Beneish M-Score of 61.93 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Adagene and its competitors. This is 1220% above median its historical median of 4.69. According to the industry distribution chart, Adagene ranks #817 out of 831 companies in the Biotechnology industry, placing it in the top 98.3%.
Is Adagene's Beneish M-Score too high?
Adagene's current Beneish M-Score of 61.93 is 1220% above median its 10-year median of 4.69. Based on the distribution chart, Adagene ranks #817 out of 831 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Adagene has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does Adagene's Beneish M-Score compare to CNTX and TARA?
According to the Biotechnology industry distribution chart, Adagene ranks #817 out of 831 companies for Beneish M-Score. This places Adagene 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 Biotechnology company?
A good Beneish M-Score depends on the Biotechnology 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 Adagene and its competitors. Adagene's current Beneish M-Score is 61.93, which is 1220% above median its own 10-year median of 4.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adagene stock overvalued right now?
Adagene (FRA:978) has a current Beneish M-Score of 61.93. The stock's GF Value™ is €11.04, compared to a current price of €3.32 — trading 69.9% below its estimated fair value. The current Beneish M-Score is 61.93, which is 1220% above median its 10-year median of 4.69. Adagene's overall GF Score™ is 42/100 with 5 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 Adagene (FRA:978), the current Beneish M-Score is 61.93 as of Jun. 25, 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 Adagene (FRA:978) Overvalued in 2026?
Based on GuruFocus' analysis, Adagene stock appears to be undervalued.
The current stock price of €3.32 is trading 69.9% below its estimated GF Value™ of €11.04.
Key valuation signals for FRA:978:
Beneish M-Score: 61.93 (1220% above median its 10-year median of 4.69)
GF Value™: €11.04 vs. price of €3.32 (69.9% below fair value)
No single metric tells the full story. See the FRA:978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adagene Inc is a platform-driven, clinical-stage biotechnology company focused on the discovery and development of novel antibody-based cancer immunotherapies. The Company leverages computational biology to design and develop novel antibodies. Powered by its Dynamic Precision Library (DPL) platform, which fuels its NEObody, SAFEbody, and POWERbody technologies, it is developing a pipeline of immunotherapies. Its candidate, ADG126 (muzastotug), an anti-CTLA-4 SAFEbody, is in phase 1b/2 and phase 2 clinical development for metastatic microsatellite-stable colorectal cancer. Its clinical-stage products include ADG126 and ADG116, investigational fully human anti-CTLA-4 mAbs generated through SAFEbody and NEObody technologies.
42GF Score
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