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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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Microware Group's Beneish M-Score or its related term are showing as below:
HKSE:01985'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.47 Med: -2.38 Max: 5.42
Current: -2.36
During the past 13 years, the highest Beneish M-Score of Microware Group was 5.42. The lowest was -3.47. And the median was -2.38.
The historical data trend for Microware Group'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:01985 vs IBM, ACN, FISV: Beneish M-Score Comparison
For the Information Technology Services subindustry, Microware Group'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.
Microware Group Beneish M-Score vs Software Industry
For the Software industry and Technology sector, Microware Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Microware Group'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 Microware Group 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 * 1.1619
+
0.528 * 0.9524
+
0.404 * 1.029
+
0.892 * 0.8724
+
0.115 * 0.712
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9803
+
4.679 * 0.022175
-
0.327 * 0.9315
=
-2.36
* 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))
=
(14.425 / (14.425 + 25.401))
/
(14.907 / (14.907 + 14.395))
=
0.362201
/
0.508737
=
0.712
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
=
(30.205 - 0
-
15.87)
/
646.446
=
0.022175
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.
Microware Group has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.
Microware Group (HKSE:01985) has a Beneish M-Score of -2.36 as of Jul. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Microware Group and its competitors. According to the industry distribution chart, Microware Group ranks #1619 out of 2628 companies in the Software industry, placing it in the top 61.6%.
Is Microware Group's Beneish M-Score too high?
Microware Group's current Beneish M-Score is -2.36. Based on the distribution chart, Microware Group ranks #1619 out of 2628 companies in the Software industry, which is below the industry midpoint. Overall, Microware Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microware Group's Beneish M-Score compare to IBM and ACN?
According to the Software industry distribution chart, Microware Group ranks #1619 out of 2628 companies for Beneish M-Score. This places Microware Group 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 Software company?
A good Beneish M-Score depends on the Software 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 Microware Group and its competitors. Microware Group's current Beneish M-Score is -2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microware Group stock overvalued right now?
Based on GuruFocus' analysis, Microware Group (HKSE:01985) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.15, compared to a current price of HK$2.97 — trading 158.3% above its estimated fair value. The current Beneish M-Score is -2.36. Microware Group's overall GF Score™ is 60/100 with 3 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 Microware Group (HKSE:01985), the current Beneish M-Score is -2.36 as of Jul. 31, 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 Microware Group (HKSE:01985) Overvalued in 2026?
Based on GuruFocus' analysis, Microware Group stock appears to be overvalued.
The current stock price of HK$2.97 is trading 158.3% above its estimated GF Value™ of HK$1.15.
GuruFocus considers Microware Group to be Significantly Overvalued.
Key valuation signals for HKSE:01985:
Beneish M-Score: -2.36
GF Value™: HK$1.15 vs. price of HK$2.97 (158.3% above fair value)
No single metric tells the full story. See the HKSE:01985 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microware Group Ltd is an investment holding company. The company is principally engaged in the provision of IT infrastructure solutions services and IT managed services in Hong Kong. The group strives to provide one-stop IT experience that begins with consultation and advice; semiconductor products, hardware and/or software procurement; implementation; and management and maintenance of the IT infrastructure solutions. Its operating segment includes IT infrastructure solution services business; and IT managed services business of which the majority of revenue is derived from IT infrastructure solution services business. Its revenue is derived from its operation in Hong Kong.
60GF Score
Get the complete analysis for HKSE:01985
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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