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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.
Warning Sign:
Beneish M-Score -0.04 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for Guan Chao Holdings's Beneish M-Score or its related term are showing as below:
HKSE:01872'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.1 Med: -2.34 Max: 0.26
Current: -0.04
During the past 10 years, the highest Beneish M-Score of Guan Chao Holdings was 0.26. The lowest was -3.10. And the median was -2.34.
Guan Chao Holdings Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Guan Chao 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.
HKSE:01872 vs CVNA, PAG, KMX: Beneish M-Score Comparison
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings Beneish M-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Guan Chao Holdings's Beneish M-Score falls into.
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 Guan Chao 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 * 1.9767
+
0.528 * 1.2379
+
0.404 * 0.8461
+
0.892 * 1.799
+
0.115 * 1.1204
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.946
+
4.679 * 0.148987
-
0.327 * 0.8471
=
-0.04
* 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))
=
(32.08 / (32.08 + 171.828))
/
(39.118 / (39.118 + 239.464))
=
0.157326
/
0.140418
=
1.1204
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
=
(-49.264 - 0
-
-304.149)
/
1710.787
=
0.148987
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.
Guan Chao Holdings has a M-score of -0.04 signals that the company is likely to be a manipulator.
Guan Chao Holdings (HKSE:01872) has a Beneish M-Score of -0.04 as of Aug. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Guan Chao Holdings and its competitors. According to the industry distribution chart, Guan Chao Holdings ranks #1237 out of 1272 companies in the Vehicles & Parts industry, placing it in the top 97.2%.
Is Guan Chao Holdings' Beneish M-Score too high?
Guan Chao Holdings' current Beneish M-Score is -0.04. Based on the distribution chart, Guan Chao Holdings ranks #1237 out of 1272 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Beneish M-Score compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #1237 out of 1272 companies for Beneish M-Score. This places Guan Chao Holdings 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 Vehicles & Parts company?
A good Beneish M-Score depends on the Vehicles & Parts 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 Guan Chao Holdings and its competitors. Guan Chao Holdings's current Beneish M-Score is -0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Beneish M-Score is -0.04. Guan Chao Holdings' overall GF Score™ is 52/100 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 Guan Chao Holdings (HKSE:01872), the current Beneish M-Score is -0.04 as of Aug. 02, 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Beneish M-Score: -0.04
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF Score
Get the complete analysis for HKSE:01872
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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