Virscend Education Co (HKSE:01565) Beneish M-Score: -2.95 (As of Aug. 11, 2026)

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HKSE:01565 Virscend Education Co Ltd HKSE:01565
57 GF Score
Price HK$0.19
GF Value HK$0.24
Valuation Modestly Undervalued
! 6 Warning Signs
View Full Analysis

What is Virscend Education Co Beneish M-Score?

Virscend Education Co HKSE:01565 -0.51% 57 Beneish M-Score is -2.95 as of Aug. 11, 2026. GuruFocus rates HKSE:01565 with a GF Score™ of 57/100 and a GF Value™ of HK$0.24 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 240 Education companies, Virscend Education Co ranks better than 74.17% 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 -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01565' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Med: -2.59   Max: 8.7
Current: -2.95

During the past 11 years, the highest Beneish M-Score of Virscend Education Co was 8.70. The lowest was -3.20. And the median was -2.59.

Virscend Education Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Virscend Education Co'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.

Virscend Education Co Beneish M-Score Chart

Virscend Education Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Aug22 Aug23 Aug24 Aug25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.70 -2.11 -0.82 -3.20 -2.95

Virscend Education Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 0.00 -3.20 0.00 -2.95 0.00

HKSE:01565 vs EDU, TAL, LAUR: Beneish M-Score Comparison

For the Education & Training Services subindustry, Virscend Education Co'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.

Virscend Education Co Beneish M-Score vs Education Industry

For the Education industry and Consumer Defensive sector, Virscend Education Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Virscend Education Co's Beneish M-Score falls into.


HKSE:01565
57GF Score
Virscend Education Co Ltd HKSE:01565
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Virscend Education 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 Virscend Education 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 * 0.8444+0.528 * 1.0482+0.404 * 0.8839+0.892 * 1.135+0.115 * 0.8738
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0654+4.679 * -0.084078-0.327 * 1.0307
=-2.95

* 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 (Aug25) TTM:Last Year (Aug24) TTM:
Total Receivables was HK$13 Mil.
Revenue was HK$1,182 Mil.
Gross Profit was HK$369 Mil.
Total Current Assets was HK$1,171 Mil.
Total Assets was HK$4,828 Mil.
Property, Plant and Equipment(Net PPE) was HK$3,177 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$191 Mil.
Selling, General, & Admin. Expense(SGA) was HK$171 Mil.
Total Current Liabilities was HK$1,970 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,363 Mil.
Net Income was HK$63 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$469 Mil.
 Total Receivables was HK$14 Mil.
Revenue was HK$1,042 Mil.
Gross Profit was HK$341 Mil.
Total Current Assets was HK$1,056 Mil.
Total Assets was HK$4,874 Mil.
Property, Plant and Equipment(Net PPE) was HK$3,269 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$171 Mil.
Selling, General, & Admin. Expense(SGA) was HK$141 Mil.
Total Current Liabilities was HK$1,799 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,466 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)
=(13.113 / 1182.45) / (13.682 / 1041.792)
=0.01109 / 0.013133
=0.8444

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)
=(341.196 / 1041.792) / (369.459 / 1182.45)
=0.327509 / 0.312452
=1.0482

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 - (1170.948 + 3177.14) / 4827.686) / (1 - (1056.484 + 3269.301) / 4873.559)
=0.099343 / 0.112397
=0.8839

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
=1182.45 / 1041.792
=1.135

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))
=(170.598 / (170.598 + 3269.301)) / (191.183 / (191.183 + 3177.14))
=0.049594 / 0.056759
=0.8738

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)
=(170.756 / 1182.45) / (141.21 / 1041.792)
=0.144409 / 0.135545
=1.0654

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)
=((1363.351 + 1969.869) / 4827.686) / ((1465.642 + 1799.065) / 4873.559)
=0.690438 / 0.669881
=1.0307

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
=(62.951 - 0 - 468.855) / 4827.686
=-0.084078

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.

Virscend Education Co has a M-score of -2.95 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 -2.95 mean?
Virscend Education Co (HKSE:01565) has a Beneish M-Score of -2.95 as of Aug. 11, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Virscend Education Co and its competitors. According to the industry distribution chart, Virscend Education Co ranks #62 out of 240 companies in the Education industry, placing it in the top 25.8%.
Is Virscend Education Co's Beneish M-Score too high?
Virscend Education Co's current Beneish M-Score is -2.95. Based on the distribution chart, Virscend Education Co ranks #62 out of 240 companies in the Education industry, which is above the industry midpoint. Overall, Virscend Education Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virscend Education Co's Beneish M-Score compare to EDU and TAL?
According to the Education industry distribution chart, Virscend Education Co ranks #62 out of 240 companies for Beneish M-Score. This puts Virscend Education Co 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 an Education company?
A good Beneish M-Score depends on the Education 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 Virscend Education Co and its competitors. Virscend Education Co's current Beneish M-Score is -2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virscend Education Co stock overvalued right now?
Based on GuruFocus' analysis, Virscend Education Co (HKSE:01565) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.19 — trading 19.2% below its estimated fair value. The current Beneish M-Score is -2.95. Virscend Education Co's overall GF Score™ is 57/100 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 Virscend Education Co (HKSE:01565), the current Beneish M-Score is -2.95 as of Aug. 11, 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 Virscend Education Co (HKSE:01565) Overvalued in 2026?

Based on GuruFocus' analysis, Virscend Education Co stock appears to be undervalued. The current stock price of HK$0.19 is trading 19.2% below its estimated GF Value™ of HK$0.24. GuruFocus considers Virscend Education Co to be Modestly Undervalued.

Key valuation signals for HKSE:01565:

  • Beneish M-Score: -2.95
  • GF Value™: HK$0.24 vs. price of HK$0.19 (19.2% below fair value)
  • GF Score™: 57/100 with 6 warning signs

No single metric tells the full story. See the HKSE:01565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Virscend Education Co Business Description

Address No. 18 Sandongqiao Road, Jinniu District, Chengdu, CHN
Virscend Education Co Ltd is a provider of K-12 private education services. The company is a provider of high school and university private education services in Southwest China. The firm's formal education industry consists of education for pre-school, primary, middle, and high school students with a total of over 16-second foreign language-based classes to its students, which include German, French, and Japanese, among other languages. The majority of the company's revenues are generated through tuition fees.
57GF Score

Get the complete analysis for HKSE:01565

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

HK$0.19
Price
HK$0.24
GF Value