Softcare (HKSE:02698) Beneish M-Score: -1.74 (As of Jun. 25, 2026)


HKSE:02698 Softcare Ltd HKSE:02698
23 GF Score
Price HK$24.46
! 2 Warning Signs
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What is Softcare Beneish M-Score?

Softcare HKSE:02698 -5.92% 23 Beneish M-Score is -1.74 as of Jun. 25, 2026. GuruFocus rates HKSE:02698 with a GF Score™ of 23/100. The stock has 2 warning signs investors should review. Among 1,849 Consumer Packaged Goods companies, Softcare ranks worse than 83.61% 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.

Warning Sign:

Beneish M-Score -1.74 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:02698' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Med: -2.49   Max: -1.74
Current: -1.74

During the past 4 years, the highest Beneish M-Score of Softcare was -1.74. The lowest was -3.24. And the median was -2.49.

Softcare Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Softcare'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.

Softcare Beneish M-Score Chart

Softcare Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -3.24 -1.74

Softcare Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
Beneish M-Score 0.00 0.00 -3.24 -1.74

HKSE:02698 vs PG, CL, KVUE: Beneish M-Score Comparison

For the Household & Personal Products subindustry, Softcare'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.

Softcare Beneish M-Score vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Softcare's Beneish M-Score distribution charts can be found below:

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


HKSE:02698
23GF Score
Softcare Ltd HKSE:02698
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Softcare 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 Softcare 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 * 1.5117+0.528 * 0.9827+0.404 * 0.4372+0.892 * 1.2499+0.115 * 1.3697
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0723+4.679 * 0.007508-0.327 * 0.342
=-1.74

* 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$89 Mil.
Revenue was HK$4,415 Mil.
Gross Profit was HK$1,583 Mil.
Total Current Assets was HK$4,898 Mil.
Total Assets was HK$5,935 Mil.
Property, Plant and Equipment(Net PPE) was HK$911 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$81 Mil.
Selling, General, & Admin. Expense(SGA) was HK$460 Mil.
Total Current Liabilities was HK$861 Mil.
Long-Term Debt & Capital Lease Obligation was HK$29 Mil.
Net Income was HK$943 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$898 Mil.
 Total Receivables was HK$47 Mil.
Revenue was HK$3,532 Mil.
Gross Profit was HK$1,245 Mil.
Total Current Assets was HK$1,371 Mil.
Total Assets was HK$1,975 Mil.
Property, Plant and Equipment(Net PPE) was HK$508 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$64 Mil.
Selling, General, & Admin. Expense(SGA) was HK$343 Mil.
Total Current Liabilities was HK$858 Mil.
Long-Term Debt & Capital Lease Obligation was HK$7 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)
=(89.401 / 4414.709) / (47.317 / 3532.147)
=0.020251 / 0.013396
=1.5117

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)
=(1244.918 / 3532.147) / (1583.416 / 4414.709)
=0.352454 / 0.358668
=0.9827

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 - (4898.372 + 911.132) / 5934.774) / (1 - (1371.22 + 508.396) / 1974.957)
=0.021108 / 0.048275
=0.4372

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
=4414.709 / 3532.147
=1.2499

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))
=(64.27 / (64.27 + 508.396)) / (81.317 / (81.317 + 911.132))
=0.112229 / 0.081936
=1.3697

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)
=(459.83 / 4414.709) / (343.11 / 3532.147)
=0.104159 / 0.097139
=1.0723

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)
=((28.781 + 860.619) / 5934.774) / ((7.276 + 858.036) / 1974.957)
=0.149862 / 0.438142
=0.342

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
=(942.745 - 0 - 898.184) / 5934.774
=0.007508

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.

Softcare has a M-score of -1.74 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.74 mean?
Softcare (HKSE:02698) has a Beneish M-Score of -1.74 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Softcare and its competitors. According to the industry distribution chart, Softcare ranks #1546 out of 1849 companies in the Consumer Packaged Goods industry, placing it in the top 83.6%.
Is Softcare's Beneish M-Score too high?
Softcare's current Beneish M-Score is -1.74. Based on the distribution chart, Softcare ranks #1546 out of 1849 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Softcare has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Softcare's Beneish M-Score compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Softcare ranks #1546 out of 1849 companies for Beneish M-Score. This places Softcare 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 Consumer Packaged Goods company?
A good Beneish M-Score depends on the Consumer Packaged Goods 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 Softcare and its competitors. Softcare's current Beneish M-Score is -1.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcare stock overvalued right now?
Softcare (HKSE:02698) has a current Beneish M-Score of -1.74. The current Beneish M-Score is -1.74. Softcare's overall GF Score™ is 23/100 with 2 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 Softcare (HKSE:02698), the current Beneish M-Score is -1.74 as of Jun. 25, 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.

Softcare Business Description

Address 5 West A, Second Floor, 5WA 219, Dubai Airport Freezone, Dubai, ARE
Softcare Ltd is a hygiene product corporation principally engaged in the development, manufacturing and sales of baby and feminine hygiene products, including baby diapers, baby pants, sanitary pads and wet wipes. Geographically the company operates in Africa, Latin America and Central Asia. It offers a variety of baby and feminine hygiene products under brands like Softcare, as well as Veesper, Maya, Cuettie and Clincleer. The company generates the majority of its revenue from the sales of hygiene products in Africa.
23GF Score

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

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