Ever Reach Group (Holdings) Co (HKSE:03616) Beneish M-Score: -2.31 (As of Aug. 30, 2026)

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HKSE:03616 Ever Reach Group (Holdings) Co Ltd HKSE:03616
53 GF Score
Price HK$0.25
GF Value HK$0.18
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Ever Reach Group (Holdings) Co Beneish M-Score?

Ever Reach Group (Holdings) Co HKSE:03616 -0.40% 53 Beneish M-Score is -2.31 as of Aug. 30, 2026. GuruFocus rates HKSE:03616 with a GF Score™ of 53/100 and a GF Value™ of HK$0.18 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,680 Real Estate companies, Ever Reach Group (Holdings) Co ranks worse than 53.87% 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ever Reach Group (Holdings) Co's Beneish M-Score or its related term are showing as below:

HKSE:03616' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.28   Max: -0.4
Current: -2.31

During the past 11 years, the highest Beneish M-Score of Ever Reach Group (Holdings) Co was -0.40. The lowest was -3.11. And the median was -2.28.

Ever Reach Group (Holdings) Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Ever Reach Group (Holdings) 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.

Ever Reach Group (Holdings) Co Beneish M-Score Chart

Ever Reach Group (Holdings) Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.81 -2.50 -0.40 -1.94 -2.31

Ever Reach Group (Holdings) Co Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 -0.40 0.00 -1.94 0.00 -2.31

Ever Reach Group (Holdings) Co Beneish M-Score Competitor Comparison

For the Real Estate - Development subindustry, Ever Reach Group (Holdings) 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.

Ever Reach Group (Holdings) Co Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Ever Reach Group (Holdings) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ever Reach Group (Holdings) Co's Beneish M-Score falls into.


HKSE:03616
53GF Score
Ever Reach Group (Holdings) Co Ltd HKSE:03616
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ever Reach Group (Holdings) 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 Ever Reach Group (Holdings) 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 * 1.0912+0.528 * 1.6669+0.404 * 1.0968+0.892 * 0.9507+0.115 * 1.0457
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8809+4.679 * -0.061185-0.327 * 0.9932
=-2.31

* 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$272 Mil.
Revenue was HK$2,804 Mil.
Gross Profit was HK$75 Mil.
Total Current Assets was HK$6,830 Mil.
Total Assets was HK$7,194 Mil.
Property, Plant and Equipment(Net PPE) was HK$45 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$12 Mil.
Selling, General, & Admin. Expense(SGA) was HK$228 Mil.
Total Current Liabilities was HK$5,234 Mil.
Long-Term Debt & Capital Lease Obligation was HK$455 Mil.
Net Income was HK$-245 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$196 Mil.
 Total Receivables was HK$262 Mil.
Revenue was HK$2,949 Mil.
Gross Profit was HK$131 Mil.
Total Current Assets was HK$8,044 Mil.
Total Assets was HK$8,431 Mil.
Property, Plant and Equipment(Net PPE) was HK$46 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$13 Mil.
Selling, General, & Admin. Expense(SGA) was HK$272 Mil.
Total Current Liabilities was HK$6,257 Mil.
Long-Term Debt & Capital Lease Obligation was HK$455 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)
=(272.3 / 2803.784) / (262.48 / 2949.055)
=0.097119 / 0.089005
=1.0912

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)
=(131.442 / 2949.055) / (74.969 / 2803.784)
=0.044571 / 0.026739
=1.6669

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 - (6830.492 + 44.959) / 7194.409) / (1 - (8044.035 + 46.071) / 8430.899)
=0.044334 / 0.040422
=1.0968

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
=2803.784 / 2949.055
=0.9507

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))
=(12.775 / (12.775 + 46.071)) / (11.779 / (11.779 + 44.959))
=0.217092 / 0.207603
=1.0457

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)
=(227.685 / 2803.784) / (271.858 / 2949.055)
=0.081206 / 0.092185
=0.8809

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)
=((455.189 + 5233.689) / 7194.409) / ((455.272 + 6256.713) / 8430.899)
=0.790736 / 0.796117
=0.9932

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
=(-244.595 - 0 - 195.592) / 7194.409
=-0.061185

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.

Ever Reach Group (Holdings) Co has a M-score of -2.31 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 -2.31 mean?
Ever Reach Group (Holdings) Co (HKSE:03616) has a Beneish M-Score of -2.31 as of Aug. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ever Reach Group (Holdings) Co and its competitors. According to the industry distribution chart, Ever Reach Group (Holdings) Co ranks #905 out of 1680 companies in the Real Estate industry, placing it in the top 53.9%.
Is Ever Reach Group (Holdings) Co's Beneish M-Score too high?
Ever Reach Group (Holdings) Co's current Beneish M-Score is -2.31. Based on the distribution chart, Ever Reach Group (Holdings) Co ranks #905 out of 1680 companies in the Real Estate industry, which is below the industry midpoint. Overall, Ever Reach Group (Holdings) Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ever Reach Group (Holdings) Co's Beneish M-Score compare to competitors?
According to the Real Estate industry distribution chart, Ever Reach Group (Holdings) Co ranks #905 out of 1680 companies for Beneish M-Score. This places Ever Reach Group (Holdings) Co 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 Real Estate company?
A good Beneish M-Score depends on the Real Estate 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 Ever Reach Group (Holdings) Co and its competitors. Ever Reach Group (Holdings) Co's current Beneish M-Score is -2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ever Reach Group (Holdings) Co stock overvalued right now?
Based on GuruFocus' analysis, Ever Reach Group (Holdings) Co (HKSE:03616) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.25 — trading 37.2% above its estimated fair value. The current Beneish M-Score is -2.31. Ever Reach Group (Holdings) Co's overall GF Score™ is 53/100 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 Ever Reach Group (Holdings) Co (HKSE:03616), the current Beneish M-Score is -2.31 as of Aug. 30, 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 Ever Reach Group (Holdings) Co (HKSE:03616) Overvalued in 2026?

Based on GuruFocus' analysis, Ever Reach Group (Holdings) Co stock appears to be overvalued. The current stock price of HK$0.25 is trading 37.2% above its estimated GF Value™ of HK$0.18. GuruFocus considers Ever Reach Group (Holdings) Co to be Significantly Overvalued.

Key valuation signals for HKSE:03616:

  • Beneish M-Score: -2.31
  • GF Value™: HK$0.18 vs. price of HK$0.25 (37.2% above fair value)
  • GF Score™: 53/100 with 6 warning signs

No single metric tells the full story. See the HKSE:03616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ever Reach Group (Holdings) Co Business Description

Address 266 Bayi Road, Henan Province, Weidu District, Xuchang, CHN
Ever Reach Group (Holdings) Co Ltd is an investment holding company. The company and its subsidiaries are principally engaged in the property development business in the People's Republic of China (PRC). Some of its projects include Xuchang Hengda Urban Garden, Xuchang Hengda Wenfeng City Garden, and Luohe Hengda Huatai New Building in China.
53GF Score

Get the complete analysis for HKSE:03616

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

HK$0.25
Price
HK$0.18
GF Value