Tao Heung Holdings (HKSE:00573) Beneish M-Score: -3.26 (As of Jul. 04, 2026)


HKSE:00573 Tao Heung Holdings Ltd HKSE:00573
40 GF Score
Price HK$0.27
GF Value HK$0.52
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Tao Heung Holdings Beneish M-Score?

Tao Heung Holdings HKSE:00573 40 Beneish M-Score is -3.26 as of Jul. 04, 2026. GuruFocus rates HKSE:00573 with a GF Score™ of 40/100 and a GF Value™ of HK$0.52 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 354 Restaurants companies, Tao Heung Holdings ranks better than 81.36% 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 -3.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00573' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86   Med: -2.85   Max: 5.59
Current: -3.26

During the past 13 years, the highest Beneish M-Score of Tao Heung Holdings was 5.59. The lowest was -3.86. And the median was -2.85.

Tao Heung Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Tao Heung Holdings'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.

Tao Heung Holdings Beneish M-Score Chart

Tao Heung Holdings 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 -2.69 5.59 -3.72 -2.76 -3.26

Tao Heung Holdings 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 -3.72 0.00 -2.76 0.00 -3.26

HKSE:00573 vs MCD, SBUX, YUM: Beneish M-Score Comparison

For the Restaurants subindustry, Tao Heung Holdings'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.

Tao Heung Holdings Beneish M-Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Tao Heung Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tao Heung Holdings's Beneish M-Score falls into.


HKSE:00573
40GF Score
Tao Heung Holdings Ltd HKSE:00573
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tao Heung Holdings 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 Tao Heung Holdings 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 * 1.2209+0.528 * 0.8403+0.404 * 1.0164+0.892 * 0.9561+0.115 * 1.1305
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0364+4.679 * -0.180998-0.327 * 1.0738
=-3.26

* 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 HK$53 Mil.
Revenue was HK$2,319 Mil.
Gross Profit was HK$151 Mil.
Total Current Assets was HK$474 Mil.
Total Assets was HK$1,880 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,163 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$292 Mil.
Selling, General, & Admin. Expense(SGA) was HK$190 Mil.
Total Current Liabilities was HK$477 Mil.
Long-Term Debt & Capital Lease Obligation was HK$268 Mil.
Net Income was HK$-60 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$280 Mil.
 Total Receivables was HK$46 Mil.
Revenue was HK$2,426 Mil.
Gross Profit was HK$133 Mil.
Total Current Assets was HK$520 Mil.
Total Assets was HK$1,875 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,115 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$327 Mil.
Selling, General, & Admin. Expense(SGA) was HK$192 Mil.
Total Current Liabilities was HK$499 Mil.
Long-Term Debt & Capital Lease Obligation was HK$193 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)
=(53.428 / 2319.12) / (45.77 / 2425.635)
=0.023038 / 0.018869
=1.2209

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)
=(133.07 / 2425.635) / (151.402 / 2319.12)
=0.05486 / 0.065284
=0.8403

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 - (473.719 + 1162.846) / 1880.454) / (1 - (520.24 + 1115.108) / 1874.536)
=0.129697 / 0.127599
=1.0164

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
=2319.12 / 2425.635
=0.9561

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))
=(326.845 / (326.845 + 1115.108)) / (291.627 / (291.627 + 1162.846))
=0.226668 / 0.200504
=1.1305

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)
=(189.951 / 2319.12) / (191.692 / 2425.635)
=0.081906 / 0.079028
=1.0364

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)
=((268.395 + 476.899) / 1880.454) / ((192.61 + 499.279) / 1874.536)
=0.396337 / 0.369099
=1.0738

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
=(-59.932 - 0 - 280.426) / 1880.454
=-0.180998

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.

Tao Heung Holdings has a M-score of -3.26 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 -3.26 mean?
Tao Heung Holdings (HKSE:00573) has a Beneish M-Score of -3.26 as of Jul. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Tao Heung Holdings and its competitors. According to the industry distribution chart, Tao Heung Holdings ranks #66 out of 354 companies in the Restaurants industry, placing it in the top 18.6%.
Is Tao Heung Holdings' Beneish M-Score too high?
Tao Heung Holdings' current Beneish M-Score is -3.26. Based on the distribution chart, Tao Heung Holdings ranks #66 out of 354 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Tao Heung Holdings has a GF Score™ of 40/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tao Heung Holdings' Beneish M-Score compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tao Heung Holdings ranks #66 out of 354 companies for Beneish M-Score. This places Tao Heung Holdings 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 Restaurants company?
A good Beneish M-Score depends on the Restaurants 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 Tao Heung Holdings and its competitors. Tao Heung Holdings's current Beneish M-Score is -3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tao Heung Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tao Heung Holdings (HKSE:00573) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.52, compared to a current price of HK$0.27 — trading 48.1% below its estimated fair value. The current Beneish M-Score is -3.26. Tao Heung Holdings' overall GF Score™ is 40/100 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 Tao Heung Holdings (HKSE:00573), the current Beneish M-Score is -3.26 as of Jul. 04, 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 Tao Heung Holdings (HKSE:00573) Overvalued in 2026?

Based on GuruFocus' analysis, Tao Heung Holdings stock appears to be undervalued. The current stock price of HK$0.27 is trading 48.1% below its estimated GF Value™ of HK$0.52. GuruFocus considers Tao Heung Holdings to be Significantly Undervalued.

Key valuation signals for HKSE:00573:

  • Beneish M-Score: -3.26
  • GF Value™: HK$0.52 vs. price of HK$0.27 (48.1% below fair value)
  • GF Score™: 40/100 with 2 warning signs

No single metric tells the full story. See the HKSE:00573 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tao Heung Holdings Business Description

Address Number 18 Dai Fat Street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong, HKG
Tao Heung Holdings Ltd is a Hong Kong-based company engaged in the provision of food catering services through a chain of restaurants. The company is also engaged in restaurant operations and provision of food catering services, bakery operations, production, sale, and distribution of food products and other items related to restaurant operations and provision of poultry farm operations. The company operates businesses in Hong Kong and Mainland China of which Hong Kong accounts for a majority share of the company's revenue.
40GF Score

Get the complete analysis for HKSE:00573

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

HK$0.27
Price
HK$0.52
GF Value