Kato (Hong Kong) Holdings (HKSE:02189) Beneish M-Score: -2.94 (As of Aug. 19, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:02189 Kato (Hong Kong) Holdings Ltd HKSE:02189
61 GF Score
Price HK$0.49
GF Value HK$0.53
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Kato (Hong Kong) Holdings Beneish M-Score?

Kato (Hong Kong) Holdings HKSE:02189 61 Beneish M-Score is -2.94 as of Aug. 19, 2026. GuruFocus rates HKSE:02189 with a GF Score™ of 61/100 and a GF Value™ of HK$0.53 (Fairly Valued). The stock has 6 warning signs investors should review. Among 625 Healthcare Providers & Services companies, Kato (Hong Kong) Holdings ranks better than 77.12% 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Kato (Hong Kong) Holdings's Beneish M-Score or its related term are showing as below:

HKSE:02189' s Beneish M-Score Range Over the Past 10 Years
Min: -4.36   Med: -2.3   Max: 2.45
Current: -2.94

During the past 11 years, the highest Beneish M-Score of Kato (Hong Kong) Holdings was 2.45. The lowest was -4.36. And the median was -2.30.

Kato (Hong Kong) Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Kato (Hong Kong) 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.

Kato (Hong Kong) Holdings Beneish M-Score Chart

Kato (Hong Kong) Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.39 -2.30 -3.06 -2.66 -2.94

Kato (Hong Kong) Holdings Semi-Annual Data
Mar16 Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 -3.06 0.00 -2.66 0.00 -2.94

HKSE:02189 vs HCA, THC, DVA: Beneish M-Score Comparison

For the Medical Care Facilities subindustry, Kato (Hong Kong) 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.

Kato (Hong Kong) Holdings Beneish M-Score vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kato (Hong Kong) Holdings's Beneish M-Score falls into.


HKSE:02189
61GF Score
Kato (Hong Kong) Holdings Ltd HKSE:02189
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kato (Hong Kong) 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 Kato (Hong Kong) 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 * 1.0683+0.528 * 1.0019+0.404 * 0.4826+0.892 * 1.1156+0.115 * 1.1854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8164+4.679 * -0.109369-0.327 * 0.8871
=-2.94

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was HK$25.6 Mil.
Revenue was HK$353.8 Mil.
Gross Profit was HK$330.5 Mil.
Total Current Assets was HK$103.2 Mil.
Total Assets was HK$772.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$506.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$56.8 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1.9 Mil.
Total Current Liabilities was HK$89.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$218.4 Mil.
Net Income was HK$34.2 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$118.7 Mil.
 Total Receivables was HK$21.5 Mil.
Revenue was HK$317.1 Mil.
Gross Profit was HK$296.8 Mil.
Total Current Assets was HK$92.8 Mil.
Total Assets was HK$809.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$362.8 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$49.3 Mil.
Selling, General, & Admin. Expense(SGA) was HK$2.1 Mil.
Total Current Liabilities was HK$90.1 Mil.
Long-Term Debt & Capital Lease Obligation was HK$273.4 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)
=(25.619 / 353.78) / (21.496 / 317.114)
=0.072415 / 0.067786
=1.0683

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)
=(296.847 / 317.114) / (330.537 / 353.78)
=0.936089 / 0.934301
=1.0019

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 - (103.201 + 506.374) / 772.599) / (1 - (92.766 + 362.849) / 809.566)
=0.211007 / 0.437211
=0.4826

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
=353.78 / 317.114
=1.1156

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))
=(49.281 / (49.281 + 362.849)) / (56.811 / (56.811 + 506.374))
=0.119576 / 0.100874
=1.1854

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)
=(1.91 / 353.78) / (2.097 / 317.114)
=0.005399 / 0.006613
=0.8164

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)
=((218.44 + 89.29) / 772.599) / ((273.363 + 90.137) / 809.566)
=0.398305 / 0.449006
=0.8871

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
=(34.224 - 0 - 118.722) / 772.599
=-0.109369

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.

Kato (Hong Kong) Holdings has a M-score of -2.94 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 -2.94 mean?
Kato (Hong Kong) Holdings (HKSE:02189) has a Beneish M-Score of -2.94 as of Aug. 19, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Kato (Hong Kong) Holdings and its competitors. According to the industry distribution chart, Kato (Hong Kong) Holdings ranks #143 out of 625 companies in the Healthcare Providers & Services industry, placing it in the top 22.9%.
Is Kato (Hong Kong) Holdings' Beneish M-Score too high?
Kato (Hong Kong) Holdings' current Beneish M-Score is -2.94. Based on the distribution chart, Kato (Hong Kong) Holdings ranks #143 out of 625 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Kato (Hong Kong) Holdings has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato (Hong Kong) Holdings' Beneish M-Score compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Kato (Hong Kong) Holdings ranks #143 out of 625 companies for Beneish M-Score. This places Kato (Hong Kong) Holdings in the top 23% 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 Healthcare Providers & Services company?
A good Beneish M-Score depends on the Healthcare Providers & 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 Kato (Hong Kong) Holdings and its competitors. Kato (Hong Kong) Holdings's current Beneish M-Score is -2.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato (Hong Kong) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings (HKSE:02189) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.49 — trading 7.5% below its estimated fair value. The current Beneish M-Score is -2.94. Kato (Hong Kong) Holdings' overall GF Score™ is 61/100 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 Kato (Hong Kong) Holdings (HKSE:02189), the current Beneish M-Score is -2.94 as of Aug. 19, 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 Kato (Hong Kong) Holdings (HKSE:02189) Overvalued in 2026?

Based on GuruFocus' analysis, Kato (Hong Kong) Holdings stock appears to be undervalued. The current stock price of HK$0.49 is trading 7.5% below its estimated GF Value™ of HK$0.53. GuruFocus considers Kato (Hong Kong) Holdings to be Fairly Valued.

Key valuation signals for HKSE:02189:

  • Beneish M-Score: -2.94
  • GF Value™: HK$0.53 vs. price of HK$0.49 (7.5% below fair value)
  • GF Score™: 61/100 with 6 warning signs

No single metric tells the full story. See the HKSE:02189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kato (Hong Kong) Holdings Business Description

Address No. 3 Tsing Ling Path, 1st Floor, Tung Wai Court, Tuen Mun, New Territories, Hong Kong, HKG
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services, and the sale of healthcare and medical goods and the provision of additional healthcare services to residents.
61GF Score

Get the complete analysis for HKSE:02189

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

HK$0.49
Price
HK$0.53
GF Value