HCXLF (Hiscox) Beneish M-Score: -2.04 (As of Jun. 25, 2026)


HCXLF Hiscox Ltd HCXLF
74 GF Score
Price $24.02
GF Value $18.20
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Hiscox Beneish M-Score?

Hiscox HCXLF 74 Beneish M-Score is -2.04 as of Jun. 25, 2026. GuruFocus rates HCXLF with a GF Score™ of 74/100 and a GF Value™ of $18.20 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 399 Insurance companies, Hiscox ranks worse than 83.46% 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 -2.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HCXLF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09   Med: -2.16   Max: -1.9
Current: -2.04

During the past 13 years, the highest Beneish M-Score of Hiscox was -1.90. The lowest was -3.09. And the median was -2.16.

HCXLF
74GF Score
Hiscox Ltd HCXLF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Hiscox 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 Hiscox 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 * 1.3064+0.528 * 1+0.404 * 1.0023+0.892 * 1.0749+0.115 * 0.8608
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.043005-0.327 * 1.1213
=-1.98

* 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 $354 Mil.
Revenue was $3,951 Mil.
Gross Profit was $3,951 Mil.
Total Current Assets was $0 Mil.
Total Assets was $12,189 Mil.
Property, Plant and Equipment(Net PPE) was $109 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $895 Mil.
Net Income was $604 Mil.
Gross Profit was $7 Mil.
Cash Flow from Operations was $73 Mil.
 Total Receivables was $252 Mil.
Revenue was $3,676 Mil.
Gross Profit was $3,676 Mil.
Total Current Assets was $0 Mil.
Total Assets was $11,241 Mil.
Property, Plant and Equipment(Net PPE) was $126 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $736 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)
=(354.3 / 3950.9) / (252.3 / 3675.6)
=0.089676 / 0.068642
=1.3064

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)
=(3675.6 / 3675.6) / (3950.9 / 3950.9)
=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 + 108.6) / 12189.2) / (1 - (0 + 126.2) / 11240.8)
=0.99109 / 0.988773
=1.0023

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
=3950.9 / 3675.6
=1.0749

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))
=(60.7 / (60.7 + 126.2)) / (65.8 / (65.8 + 108.6))
=0.324773 / 0.377294
=0.8608

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)
=(0 / 3950.9) / (0 / 3675.6)
=0 / 0
=1

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)
=((894.5 + 0) / 12189.2) / ((735.7 + 0) / 11240.8)
=0.073385 / 0.065449
=1.1213

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
=(604.1 - 7.1 - 72.8) / 12189.2
=0.043005

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.

Hiscox has a M-score of -1.98 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 -2.04 mean?
Hiscox (HCXLF) has a Beneish M-Score of -2.04 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hiscox and its competitors. According to the industry distribution chart, Hiscox ranks #333 out of 399 companies in the Insurance industry, placing it in the top 83.5%.
Is Hiscox's Beneish M-Score too high?
Hiscox's current Beneish M-Score is -2.04. Based on the distribution chart, Hiscox ranks #333 out of 399 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Hiscox has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hiscox's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Hiscox ranks #333 out of 399 companies for Beneish M-Score. This places Hiscox 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 Hiscox and its competitors. Hiscox's current Beneish M-Score is -2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hiscox stock overvalued right now?
Based on GuruFocus' analysis, Hiscox (HCXLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.20, compared to a current price of $24.02 — trading 32% above its estimated fair value. The current Beneish M-Score is -2.04. Hiscox's overall GF Score™ is 74/100 with 7 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 Hiscox (HCXLF), the current Beneish M-Score is -2.04 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 Hiscox (HCXLF) Overvalued in 2026?

Based on GuruFocus' analysis, Hiscox stock appears to be overvalued. The current stock price of $24.02 is trading 32% above its estimated GF Value™ of $18.20. GuruFocus considers Hiscox to be Modestly Overvalued.

Key valuation signals for HCXLF:

  • Beneish M-Score: -2.04
  • GF Value™: $18.20 vs. price of $24.02 (32% above fair value)
  • GF Score™: 74/100 with 7 warning signs

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

Hiscox Business Description

Address 96 Pitts Bay Road, Chesney House, Pembroke, BMU, HM 08
Hiscox Ltd is a property and casualty insurance company. The company aims to balance catastrophe-exposed businesses with less volatile local specialty businesses. Its product offerings include property, casualty, crisis management (covering terrorism and kidnap and ransom), marine, energy, and specialty areas like space insurance. The company's operating segments consist of Hiscox Retail, Hiscox London Market, Hiscox Re, and Other. The majority of the revenue is generated from its Hiscox Retail segment, which represents retail business divisions in the UK, Europe, the USA, and Asia. Geographically, the company earns insurance revenue from places like the United States, which generates key revenue, as well as the United Kingdom, Europe, and other regions.
74GF Score

Get the complete analysis for HCXLF

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

$24.02
Price
$18.20
GF Value