Central China Real Estate (FRA:AJ5) Beneish M-Score: -2.42 (As of Jun. 28, 2026)


What is Central China Real Estate Beneish M-Score?

Central China Real Estate FRA:AJ5 Beneish M-Score is -2.42 as of Jun. 28, 2026. The stock has 6 warning signs investors should review. Among 1,684 Real Estate companies, Central China Real Estate ranks better than 54.33% 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.

Good Sign:

Beneish M-Score -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Central China Real Estate's Beneish M-Score or its related term are showing as below:

FRA:AJ5' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.28   Max: -1.54
Current: -2.42

During the past 13 years, the highest Beneish M-Score of Central China Real Estate was -1.54. The lowest was -3.11. And the median was -2.28.

Central China Real Estate Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Central China Real Estate'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.

Central China Real Estate Beneish M-Score Chart

Central China Real Estate Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.02 -1.80 -2.55 -2.61 -2.42

Central China Real Estate Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.55 0.00 -2.61 0.00 -2.42

Central China Real Estate Beneish M-Score Competitor Comparison

For the Real Estate - Development subindustry, Central China Real Estate'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.

Central China Real Estate Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Central China Real Estate's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Central China Real Estate's Beneish M-Score falls into.


Central China Real Estate 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 Central China Real Estate 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 * 1.3029+0.528 * 1.44+0.404 * 1.0665+0.892 * 0.6798+0.115 * 0.87
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1243+4.679 * -0.047082-0.327 * 1.0372
=-2.50

* 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 €685 Mil.
Revenue was €1,433 Mil.
Gross Profit was €88 Mil.
Total Current Assets was €9,519 Mil.
Total Assets was €11,507 Mil.
Property, Plant and Equipment(Net PPE) was €899 Mil.
Depreciation, Depletion and Amortization(DDA) was €51 Mil.
Selling, General, & Admin. Expense(SGA) was €112 Mil.
Total Current Liabilities was €12,319 Mil.
Long-Term Debt & Capital Lease Obligation was €118 Mil.
Net Income was €-369 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €173 Mil.
 Total Receivables was €773 Mil.
Revenue was €2,108 Mil.
Gross Profit was €186 Mil.
Total Current Assets was €11,455 Mil.
Total Assets was €13,759 Mil.
Property, Plant and Equipment(Net PPE) was €1,083 Mil.
Depreciation, Depletion and Amortization(DDA) was €53 Mil.
Selling, General, & Admin. Expense(SGA) was €146 Mil.
Total Current Liabilities was €13,945 Mil.
Long-Term Debt & Capital Lease Obligation was €393 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)
=(684.963 / 1432.826) / (773.376 / 2107.722)
=0.47805 / 0.366925
=1.3029

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)
=(186.047 / 2107.722) / (87.827 / 1432.826)
=0.088269 / 0.061296
=1.44

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 - (9518.714 + 899.202) / 11506.939) / (1 - (11454.994 + 1083.207) / 13759.22)
=0.094641 / 0.088742
=1.0665

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
=1432.826 / 2107.722
=0.6798

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))
=(52.756 / (52.756 + 1083.207)) / (50.705 / (50.705 + 899.202))
=0.046442 / 0.053379
=0.87

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)
=(111.575 / 1432.826) / (145.986 / 2107.722)
=0.077871 / 0.069262
=1.1243

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)
=((118.165 + 12319.286) / 11506.939) / ((392.553 + 13945.42) / 13759.22)
=1.080865 / 1.042063
=1.0372

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
=(-369.26 - 0 - 172.512) / 11506.939
=-0.047082

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.

Central China Real Estate has a M-score of -2.50 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 -2.42 mean?
Central China Real Estate (FRA:AJ5) has a Beneish M-Score of -2.42 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Central China Real Estate and its competitors. According to the industry distribution chart, Central China Real Estate ranks #769 out of 1684 companies in the Real Estate industry, placing it in the top 45.7%.
Is Central China Real Estate's Beneish M-Score too high?
Central China Real Estate's current Beneish M-Score is -2.42. Based on the distribution chart, Central China Real Estate ranks #769 out of 1684 companies in the Real Estate industry, which is above the industry midpoint.
How does Central China Real Estate's Beneish M-Score compare to competitors?
According to the Real Estate industry distribution chart, Central China Real Estate ranks #769 out of 1684 companies for Beneish M-Score. This puts Central China Real Estate 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 Real Estate company?
A good Beneish M-Score depends on the Real Estate 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 Central China Real Estate and its competitors. Central China Real Estate's current Beneish M-Score is -2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central China Real Estate stock overvalued right now?
Central China Real Estate (FRA:AJ5) has a current Beneish M-Score of -2.42. The current Beneish M-Score is -2.42. 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 Central China Real Estate (FRA:AJ5), the current Beneish M-Score is -2.42 as of Jun. 28, 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.

Central China Real Estate Business Description

Other Exchanges 00832:Hong Kong
Address Nongye East Road, Block E, Jianye Office Building, Henan Province, Zhengzhou, CHN
Central China Real Estate Ltd is a Hong Kong-based investment holding company principally engaged in property development, property leasing and hotel operations. The company's main businesses include the development of property projects for sales and rental, as well as hotel operations. Its properties include Zhengzhou Tianzhu, Zhengzhou Triumph Plaza, Pingdingshan Eighteen Cities, and Jiaozuo Xiuwu Forest Peninsula, among others. Its hotels include Le Meridien Zhengzhou, Aloft Zhengzhou Shangjie, and Holiday Inn Nanyang, among others. The Company is also involved in the businesses of cultural tourism projects and light-asset model projects. The Company mainly operates businesses in Henan, China.