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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 -2.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for China Leon Inspection Holding's Beneish M-Score or its related term are showing as below:
HKSE:01586'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.13 Med: -2.65 Max: -2.07
Current: -2.15
During the past 13 years, the highest Beneish M-Score of China Leon Inspection Holding was -2.07. The lowest was -3.13. And the median was -2.65.
* 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.
China Leon Inspection Holding Beneish M-Score Chart
HKSE:01586 vs CTAS, CPRT, GPN: Beneish M-Score Comparison
For the Specialty Business Services subindustry, China Leon Inspection Holding'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.
China Leon Inspection Holding Beneish M-Score vs Business Services Industry
For the Business Services industry and Industrials sector, China Leon Inspection Holding's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where China Leon Inspection Holding's Beneish M-Score falls into.
China Leon Inspection Holding 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 China Leon Inspection Holding 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 * 1.3181
+
0.528 * 1.205
+
0.404 * 0.9603
+
0.892 * 1.0618
+
0.115 * 0.9832
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9809
+
4.679 * -0.005473
-
0.327 * 1.2558
=
-2.15
* 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))
=
(71.106 / (71.106 + 315.031))
/
(77.348 / (77.348 + 335.631))
=
0.184147
/
0.187293
=
0.9832
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
=
(38.734 - 0
-
44.327)
/
1021.863
=
-0.005473
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.
China Leon Inspection Holding has a M-score of -2.15 suggests that the company is unlikely to be a manipulator.
China Leon Inspection Holding (HKSE:01586) has a Beneish M-Score of -2.15 as of Aug. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Leon Inspection Holding and its competitors. According to the industry distribution chart, China Leon Inspection Holding ranks #769 out of 1018 companies in the Business Services industry, placing it in the top 75.5%.
Is China Leon Inspection Holding's Beneish M-Score too high?
China Leon Inspection Holding's current Beneish M-Score is -2.15. Based on the distribution chart, China Leon Inspection Holding ranks #769 out of 1018 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, China Leon Inspection Holding has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Leon Inspection Holding's Beneish M-Score compare to CTAS and CPRT?
According to the Business Services industry distribution chart, China Leon Inspection Holding ranks #769 out of 1018 companies for Beneish M-Score. This places China Leon Inspection Holding 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 Business Services company?
A good Beneish M-Score depends on the Business Services 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 China Leon Inspection Holding and its competitors. China Leon Inspection Holding's current Beneish M-Score is -2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Leon Inspection Holding stock overvalued right now?
Based on GuruFocus' analysis, China Leon Inspection Holding (HKSE:01586) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.22, compared to a current price of HK$1.72 — trading 22.5% below its estimated fair value. The current Beneish M-Score is -2.15. China Leon Inspection Holding's overall GF Score™ is 88/100 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 China Leon Inspection Holding (HKSE:01586), the current Beneish M-Score is -2.15 as of Aug. 13, 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 China Leon Inspection Holding (HKSE:01586) Overvalued in 2026?
Based on GuruFocus' analysis, China Leon Inspection Holding stock appears to be undervalued.
The current stock price of HK$1.72 is trading 22.5% below its estimated GF Value™ of HK$2.22.
GuruFocus considers China Leon Inspection Holding to be Modestly Undervalued.
Key valuation signals for HKSE:01586:
Beneish M-Score: -2.15
GF Value™: HK$2.22 vs. price of HK$1.72 (22.5% below fair value)
No single metric tells the full story. See the HKSE:01586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality. Geographically, it generates the majority of its revenue from Greater China.
88GF Score
Get the complete analysis for HKSE:01586
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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