Kimou Environmental Holding (HKSE:06805) Beneish M-Score: -2.37 (As of Jul. 05, 2026)

What is Kimou Environmental Holding Beneish M-Score?

Kimou Environmental Holding HKSE:06805 -0.94% 72 Beneish M-Score is -2.37 as of Jul. 05, 2026. GuruFocus rates HKSE:06805 with a GF Score™ of 72/100 and a GF Value™ of HK$1.70 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 227 Waste Management companies, Kimou Environmental Holding ranks worse than 70.04% 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 -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:06805' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17 Med: -2.68 Max: -2.37
Current: -2.37

During the past 10 years, the highest Beneish M-Score of Kimou Environmental Holding was -2.37. The lowest was -3.17. And the median was -2.68.

Kimou Environmental Holding Beneish M-Score Related Terms

Kimou Environmental Holding Beneish M-Score Historical Data

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The historical data trend for Kimou Environmental Holding'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.

Kimou Environmental Holding Beneish M-Score Chart

Kimou Environmental Holding Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.69

-2.78

-2.64

-2.66

-2.37

Kimou Environmental Holding Semi-Annual Data
	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													-2.64	0.00	-2.66	0.00	-2.37

HKSE:06805 vs WM, RSG, WCN: Beneish M-Score Comparison

For the Waste Management subindustry, Kimou Environmental Holding'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.

Kimou Environmental Holding Beneish M-Score vs Waste Management Industry

For the Waste Management industry and Industrials sector, Kimou Environmental Holding's Beneish M-Score distribution charts can be found below:

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

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72GF Score

Kimou Environmental Holding Ltd HKSE:06805

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Kimou Environmental Holding 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 Kimou Environmental Holding for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1808

0.528 * 1.1179

0.404 * 1.1187

0.892 * 1.2502

0.115 * 0.8656

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9918

4.679 * -0.07773

0.327 * 1.0367

-2.37

This Year (Dec25) TTM:

Last Year (Dec24) TTM:

Total Receivables was HK$329 Mil.
Revenue was HK$1,863 Mil.
Gross Profit was HK$1,100 Mil.
Total Current Assets was HK$859 Mil.
Total Assets was HK$6,255 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,715 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$344 Mil.
Selling, General, & Admin. Expense(SGA) was HK$36 Mil.
Total Current Liabilities was HK$1,737 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2,908 Mil.
Net Income was HK$149 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$635 Mil.

Total Receivables was HK$223 Mil.
Revenue was HK$1,490 Mil.
Gross Profit was HK$983 Mil.
Total Current Assets was HK$804 Mil.
Total Assets was HK$5,576 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,635 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$284 Mil.
Selling, General, & Admin. Expense(SGA) was HK$29 Mil.
Total Current Liabilities was HK$1,621 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2,373 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)
	=	(328.702 / 1863.102)	/	(222.673 / 1490.279)
	=	0.176427	/	0.149417
	=	1.1808

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)
	=	(983.245 / 1490.279)	/	(1099.601 / 1863.102)
	=	0.659772	/	0.590199
	=	1.1179

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 - (858.928 + 2715.284) / 6255.305)	/	(1 - (804.447 + 2635.271) / 5576.183)
	=	0.428611	/	0.383141
	=	1.1187

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
	=	1863.102	/	1490.279
	=	1.2502

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))
	=	(283.994 / (283.994 + 2635.271))	/	(343.819 / (343.819 + 2715.284))
	=	0.097283	/	0.112392
	=	0.8656

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)
	=	(35.9 / 1863.102)	/	(28.955 / 1490.279)
	=	0.019269	/	0.019429
	=	0.9918

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)
	=	((2907.586 + 1736.572) / 6255.305)	/	((2372.821 + 1620.646) / 5576.183)
	=	0.742435	/	0.716165
	=	1.0367

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
	=	(148.894 - 0	-	635.121)	/	6255.305
	=	-0.07773

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.

Kimou Environmental Holding has a M-score of -2.37 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 -2.37 mean?

Kimou Environmental Holding (HKSE:06805) has a Beneish M-Score of -2.37 as of Jul. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Kimou Environmental Holding and its competitors. According to the industry distribution chart, Kimou Environmental Holding ranks #159 out of 227 companies in the Waste Management industry, placing it in the top 70%.

Is Kimou Environmental Holding's Beneish M-Score too high?

Kimou Environmental Holding's current Beneish M-Score is -2.37. Based on the distribution chart, Kimou Environmental Holding ranks #159 out of 227 companies in the Waste Management industry, which is below the industry midpoint. Overall, Kimou Environmental Holding has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Kimou Environmental Holding's Beneish M-Score compare to WM and RSG?

According to the Waste Management industry distribution chart, Kimou Environmental Holding ranks #159 out of 227 companies for Beneish M-Score. This places Kimou Environmental Holding 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 Waste Management company?

A good Beneish M-Score depends on the Waste Management 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 Kimou Environmental Holding and its competitors. Kimou Environmental Holding's current Beneish M-Score is -2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Kimou Environmental Holding stock overvalued right now?

Based on GuruFocus' analysis, Kimou Environmental Holding (HKSE:06805) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.70, compared to a current price of HK$3.16 — trading 85.9% above its estimated fair value. The current Beneish M-Score is -2.37. Kimou Environmental Holding's overall GF Score™ is 72/100 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 Kimou Environmental Holding (HKSE:06805), the current Beneish M-Score is -2.37 as of Jul. 05, 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 Kimou Environmental Holding (HKSE:06805) Overvalued in 2026?

Based on GuruFocus' analysis, Kimou Environmental Holding stock appears to be overvalued. The current stock price of HK$3.16 is trading 85.9% above its estimated GF Value™ of HK$1.70. GuruFocus considers Kimou Environmental Holding to be Significantly Overvalued.

Key valuation signals for HKSE:06805:

Beneish M-Score: -2.37
GF Value™: HK$1.70 vs. price of HK$3.16 (85.9% above fair value)
GF Score™: 72/100 with 9 warning signs

No single metric tells the full story. See the HKSE:06805 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kimou Environmental Holding Business Description

Industry Industrials Waste Management

Comparable Companies HKSE:01272 HKSE:00895 HKSE:03718 HKSE:03989 HKSE:02265 HKSE:01483 HKSE:00154 HKSE:00587 HKSE:01397 HKSE:01845 WM RSG WCN XPAR:VIE CLH GFL XMAD:FCC CWST XBRU:UMI SZSE:002340

Address Longhua Road, Longxi Street, Boluo County, Guangdong Province, Huizhou, CHN

Website https://www.kimou.com.cn

Kimou Environmental Holding Ltd mainly involves the provision of factory premises and centralized wastewater treatment services. The company's operating segment includes Rental and facilities usage; Wastewater treatment and utilities; and Sales of goods and ancillary business. The company generates maximum revenue from the Sales of goods and ancillary business segment. Rental and facilities usage segment conducts industrial park property development and management business; Wastewater treatment and utilities segment operates electroplating wastewater treatment plants and provides services of utilities; and Sales of goods and ancillary business segment includes sales of chemicals and others. Geographically, it derives revenue from China.

72GF Score

Get the complete analysis for HKSE:06805

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

HK$3.16

Price

HK$1.70

GF Value

View HKSE:06805 Analysis

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