Lemo Services Co (HKSE:02539) Beneish M-Score: -2.97 (As of Jul. 21, 2026)

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HKSE:02539 Lemo Services Co Ltd HKSE:02539
23 GF Score
Price HK$9.99
! 1 Warning Sign
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What is Lemo Services Co Beneish M-Score?

Lemo Services Co HKSE:02539 +3.20% 23 Beneish M-Score is -2.97 as of Jul. 21, 2026. GuruFocus rates HKSE:02539 with a GF Score™ of 23/100. The stock has 1 warning sign investors should review. Among 89 Personal Services companies, Lemo Services Co ranks better than 78.65% 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 -2.97 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02539' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83   Med: -3.4   Max: -2.97
Current: -2.97

During the past 4 years, the highest Beneish M-Score of Lemo Services Co was -2.97. The lowest was -3.83. And the median was -3.40.

Lemo Services Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Lemo Services 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.

Lemo Services Co Beneish M-Score Chart

Lemo Services Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -3.83 -2.97

Lemo Services Co Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
Beneish M-Score 0.00 0.00 -3.83 -2.97

HKSE:02539 vs ROL, SCI, FTDR: Beneish M-Score Comparison

For the Personal Services subindustry, Lemo Services 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.

Lemo Services Co Beneish M-Score vs Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Lemo Services Co's Beneish M-Score distribution charts can be found below:

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


HKSE:02539
23GF Score
Lemo Services Co Ltd HKSE:02539
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Lemo Services 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 Lemo Services 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 * 1.3386+0.528 * 1.071+0.404 * 0.6344+0.892 * 1.1758+0.115 * 0.7523
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9217+4.679 * -0.205956-0.327 * 0.6093
=-2.97

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$11 Mil.
Revenue was HK$1,002 Mil.
Gross Profit was HK$337 Mil.
Total Current Assets was HK$542 Mil.
Total Assets was HK$789 Mil.
Property, Plant and Equipment(Net PPE) was HK$220 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$175 Mil.
Selling, General, & Admin. Expense(SGA) was HK$185 Mil.
Total Current Liabilities was HK$230 Mil.
Long-Term Debt & Capital Lease Obligation was HK$7 Mil.
Net Income was HK$104 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$266 Mil.
 Total Receivables was HK$7 Mil.
Revenue was HK$852 Mil.
Gross Profit was HK$307 Mil.
Total Current Assets was HK$216 Mil.
Total Assets was HK$505 Mil.
Property, Plant and Equipment(Net PPE) was HK$262 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$130 Mil.
Selling, General, & Admin. Expense(SGA) was HK$171 Mil.
Total Current Liabilities was HK$233 Mil.
Long-Term Debt & Capital Lease Obligation was HK$15 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)
=(10.704 / 1001.74) / (6.801 / 851.993)
=0.010685 / 0.007982
=1.3386

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)
=(307.275 / 851.993) / (337.327 / 1001.74)
=0.360654 / 0.336741
=1.071

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 - (542.174 + 220.488) / 789.049) / (1 - (216.456 + 261.617) / 504.678)
=0.033442 / 0.052717
=0.6344

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
=1001.74 / 851.993
=1.1758

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))
=(130.405 / (130.405 + 261.617)) / (174.754 / (174.754 + 220.488))
=0.332647 / 0.442144
=0.7523

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)
=(185.043 / 1001.74) / (170.756 / 851.993)
=0.184722 / 0.200419
=0.9217

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)
=((6.634 + 229.994) / 789.049) / ((15.286 + 233.126) / 504.678)
=0.29989 / 0.492219
=0.6093

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
=(103.547 - 0 - 266.056) / 789.049
=-0.205956

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.

Lemo Services Co has a M-score of -2.97 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 -2.97 mean?
Lemo Services Co (HKSE:02539) has a Beneish M-Score of -2.97 as of Jul. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lemo Services Co and its competitors. According to the industry distribution chart, Lemo Services Co ranks #19 out of 89 companies in the Personal Services industry, placing it in the top 21.3%.
Is Lemo Services Co's Beneish M-Score too high?
Lemo Services Co's current Beneish M-Score is -2.97. Based on the distribution chart, Lemo Services Co ranks #19 out of 89 companies in the Personal Services industry, which is in the top quartile — a strong position relative to peers. Overall, Lemo Services Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Lemo Services Co's Beneish M-Score compare to ROL and SCI?
According to the Personal Services industry distribution chart, Lemo Services Co ranks #19 out of 89 companies for Beneish M-Score. This places Lemo Services Co in the top 21% 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 Personal Services company?
A good Beneish M-Score depends on the Personal 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 Lemo Services Co and its competitors. Lemo Services Co's current Beneish M-Score is -2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lemo Services Co stock overvalued right now?
Lemo Services Co (HKSE:02539) has a current Beneish M-Score of -2.97. The current Beneish M-Score is -2.97. Lemo Services Co's overall GF Score™ is 23/100 with 1 warning sign 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 Lemo Services Co (HKSE:02539), the current Beneish M-Score is -2.97 as of Jul. 21, 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.

Lemo Services Co Business Description

Address 11 Keji East Road, 21st Floor, Building B, Wangxun Smart Center, High-Tech Zone, Fujian, Fuzhou, CHN
Lemo Services Co Ltd provides massage services performed by its mechanical massage equipment stationed at various points of service in public venues of high foot traffic across China. its segments are comprising Mechanical massage service under Direct Mode, which generates maximum revenue and engages in providing mechanical massage service to customers through its massage equipment located at the POS operated by the Group itself; Mechanical massage POS operation support services under Partner Mode, which engages in providing mechanical massage POS operation support services to Local Partners; and Others, which mainly engages in sales of household massage equipment and massage accessories, The Company generates maximum revenue from Chinese Mainland.
23GF Score

Get the complete analysis for HKSE:02539

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

HK$9.99
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