Flowing Cloud Technology (HKSE:06610) Beneish M-Score: -3.06 (As of Sep. 14, 2026)

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HKSE:06610 Flowing Cloud Technology Ltd HKSE:06610
74 GF Score
Price HK$0.82
GF Value HK$4.66
Valuation Possible Value Trap
! 9 Warning Signs
View Full Analysis

What is Flowing Cloud Technology Beneish M-Score?

Flowing Cloud Technology HKSE:06610 -2.40% 74 Beneish M-Score is -3.06 as of Sep. 14, 2026. GuruFocus rates HKSE:06610 with a GF Score™ of 74/100 and a GF Value™ of HK$4.66 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 2,641 Software companies, Flowing Cloud Technology ranks better than 78.68% 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 -3.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:06610' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -1.79   Max: 0.33
Current: -3.06

During the past 7 years, the highest Beneish M-Score of Flowing Cloud Technology was 0.33. The lowest was -3.06. And the median was -1.79.

Flowing Cloud Technology Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Flowing Cloud Technology'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.

Flowing Cloud Technology Beneish M-Score Chart

Flowing Cloud Technology Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial -1.79 0.33 -1.30 -2.17 -3.06

Flowing Cloud Technology Semi-Annual Data
Dec19 Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -2.17 0.00 -3.06 0.00

HKSE:06610 vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Flowing Cloud Technology'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.

Flowing Cloud Technology Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Flowing Cloud Technology's Beneish M-Score distribution charts can be found below:

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


HKSE:06610
74GF Score
Flowing Cloud Technology Ltd HKSE:06610
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Flowing Cloud Technology 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 Flowing Cloud Technology 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 * 1.3796+0.528 * 1.0343+0.404 * 0.8391+0.892 * 0.8149+0.115 * 0.9433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5212+4.679 * -0.106614-0.327 * 1.3819
=-3.06

* 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$771.4 Mil.
Revenue was HK$866.0 Mil.
Gross Profit was HK$168.3 Mil.
Total Current Assets was HK$1,571.2 Mil.
Total Assets was HK$1,739.2 Mil.
Property, Plant and Equipment(Net PPE) was HK$7.2 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$71.2 Mil.
Selling, General, & Admin. Expense(SGA) was HK$184.6 Mil.
Total Current Liabilities was HK$504.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.3 Mil.
Net Income was HK$-405.5 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-220.1 Mil.
 Total Receivables was HK$686.1 Mil.
Revenue was HK$1,062.7 Mil.
Gross Profit was HK$213.6 Mil.
Total Current Assets was HK$1,674.4 Mil.
Total Assets was HK$1,890.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$7.7 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$45.9 Mil.
Selling, General, & Admin. Expense(SGA) was HK$148.9 Mil.
Total Current Liabilities was HK$398.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 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)
=(771.382 / 865.998) / (686.128 / 1062.704)
=0.890743 / 0.645644
=1.3796

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)
=(213.573 / 1062.704) / (168.27 / 865.998)
=0.200971 / 0.194308
=1.0343

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 - (1571.241 + 7.18) / 1739.214) / (1 - (1674.381 + 7.671) / 1890.323)
=0.092452 / 0.110177
=0.8391

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
=865.998 / 1062.704
=0.8149

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))
=(45.928 / (45.928 + 7.671)) / (71.166 / (71.166 + 7.18))
=0.856882 / 0.908355
=0.9433

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)
=(184.551 / 865.998) / (148.876 / 1062.704)
=0.213108 / 0.140092
=1.5212

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)
=((2.26 + 504.749) / 1739.214) / ((0 + 398.783) / 1890.323)
=0.291516 / 0.21096
=1.3819

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
=(-405.529 - 0 - -220.105) / 1739.214
=-0.106614

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.

Flowing Cloud Technology has a M-score of -3.06 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 -3.06 mean?
Flowing Cloud Technology (HKSE:06610) has a Beneish M-Score of -3.06 as of Sep. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Flowing Cloud Technology and its competitors. According to the industry distribution chart, Flowing Cloud Technology ranks #563 out of 2641 companies in the Software industry, placing it in the top 21.3%.
Is Flowing Cloud Technology's Beneish M-Score too high?
Flowing Cloud Technology's current Beneish M-Score is -3.06. Based on the distribution chart, Flowing Cloud Technology ranks #563 out of 2641 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Flowing Cloud Technology has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Flowing Cloud Technology's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Flowing Cloud Technology ranks #563 out of 2641 companies for Beneish M-Score. This places Flowing Cloud Technology 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 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 Flowing Cloud Technology and its competitors. Flowing Cloud Technology's current Beneish M-Score is -3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flowing Cloud Technology stock overvalued right now?
Based on GuruFocus' analysis, Flowing Cloud Technology (HKSE:06610) is currently considered Possible Value Trap. The stock's GF Value™ is HK$4.66, compared to a current price of HK$0.82 — trading 82.5% below its estimated fair value. The current Beneish M-Score is -3.06. Flowing Cloud Technology's overall GF Score™ is 74/100 with 9 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 Flowing Cloud Technology (HKSE:06610), the current Beneish M-Score is -3.06 as of Sep. 14, 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 Flowing Cloud Technology (HKSE:06610) Overvalued in 2026?

Based on GuruFocus' analysis, Flowing Cloud Technology stock appears to be undervalued. The current stock price of HK$0.82 is trading 82.5% below its estimated GF Value™ of HK$4.66. GuruFocus considers Flowing Cloud Technology to be Possible Value Trap.

Key valuation signals for HKSE:06610:

  • Beneish M-Score: -3.06
  • GF Value™: HK$4.66 vs. price of HK$0.82 (82.5% below fair value)
  • GF Score™: 74/100 with 9 warning signs

No single metric tells the full story. See the HKSE:06610 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Flowing Cloud Technology Business Description

Address Guangqulu No. 3, Shop 8, Jingyuan Art Center, Chaoyang District, Beijing, CHN
Flowing Cloud Technology Ltd is a supplier of the Metaverse scene application tier in China. It is a smart marketing technology service provider in China. It uses AR/VR engine, AI behavior algorithm, cloud computing and other technical capabilities to empower the business development of enterprises in various vertical industries such as e-commerce, education, and cultural tourism.
74GF Score

Get the complete analysis for HKSE:06610

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

HK$0.82
Price
HK$4.66
GF Value