Freetech Road Recycling Technology (Holdings) (HKSE:06888) Beneish M-Score: -2.22 (As of Sep. 21, 2026)

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What is Freetech Road Recycling Technology (Holdings) Beneish M-Score?

Freetech Road Recycling Technology (Holdings) HKSE:06888 -2.44% Beneish M-Score is -2.22 as of Sep. 21, 2026. The stock has 7 warning signs investors should review. Among 1,708 Construction companies, Freetech Road Recycling Technology (Holdings) ranks worse than 66.45% 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 -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Freetech Road Recycling Technology (Holdings)'s Beneish M-Score or its related term are showing as below:

HKSE:06888' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Med: -2.68   Max: -1.86
Current: -2.22

During the past 13 years, the highest Beneish M-Score of Freetech Road Recycling Technology (Holdings) was -1.86. The lowest was -3.10. And the median was -2.68.

Freetech Road Recycling Technology (Holdings) Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Freetech Road Recycling Technology (Holdings)'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.

Freetech Road Recycling Technology (Holdings) Beneish M-Score Chart

Freetech Road Recycling Technology (Holdings) 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 -2.77 -2.66 -1.67 -2.93 -2.34

Freetech Road Recycling Technology (Holdings) Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.36 -1.73 -2.60 6.75

Freetech Road Recycling Technology (Holdings) Beneish M-Score Competitor Comparison

For the Infrastructure Operations subindustry, Freetech Road Recycling Technology (Holdings)'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.

Freetech Road Recycling Technology (Holdings) Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, Freetech Road Recycling Technology (Holdings)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Freetech Road Recycling Technology (Holdings)'s Beneish M-Score falls into.


Freetech Road Recycling Technology (Holdings) 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 Freetech Road Recycling Technology (Holdings) 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 * 1.3757+0.528 * 1.5008+0.404 * 1.2444+0.892 * 0.7119+0.115 * 0.9056
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6742+4.679 * -0.021464-0.327 * 1.069
=-2.28

* 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$245.01 Mil.
Revenue was HK$133.80 Mil.
Gross Profit was HK$42.67 Mil.
Total Current Assets was HK$676.46 Mil.
Total Assets was HK$950.56 Mil.
Property, Plant and Equipment(Net PPE) was HK$83.11 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$19.29 Mil.
Selling, General, & Admin. Expense(SGA) was HK$89.15 Mil.
Total Current Liabilities was HK$264.72 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.58 Mil.
Net Income was HK$-55.00 Mil.
Gross Profit was HK$ Mil.
Cash Flow from Operations was HK$-34.60 Mil.
 Total Receivables was HK$250.19 Mil.
Revenue was HK$187.96 Mil.
Gross Profit was HK$89.97 Mil.
Total Current Assets was HK$732.89 Mil.
Total Assets was HK$983.29 Mil.
Property, Plant and Equipment(Net PPE) was HK$91.62 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$18.85 Mil.
Selling, General, & Admin. Expense(SGA) was HK$74.81 Mil.
Total Current Liabilities was HK$258.66 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 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)
=(245.011 / 133.798) / (250.191 / 187.958)
=1.831201 / 1.331101
=1.3757

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)
=(89.968 / 187.958) / (42.672 / 133.798)
=0.47866 / 0.318929
=1.5008

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 - (676.457 + 83.106) / 950.564) / (1 - (732.891 + 91.623) / 983.292)
=0.200934 / 0.161476
=1.2444

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
=133.798 / 187.958
=0.7119

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))
=(18.847 / (18.847 + 91.623)) / (19.29 / (19.29 + 83.106))
=0.170607 / 0.188386
=0.9056

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)
=(89.153 / 133.798) / (74.806 / 187.958)
=0.666325 / 0.397993
=1.6742

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)
=((2.576 + 264.715) / 950.564) / ((0 + 258.657) / 983.292)
=0.281192 / 0.263052
=1.069

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
=(-54.998 - 0 - -34.595) / 950.564
=-0.021464

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.

Freetech Road Recycling Technology (Holdings) has a M-score of -2.28 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 -2.22 mean?
Freetech Road Recycling Technology (Holdings) (HKSE:06888) has a Beneish M-Score of -2.22 as of Sep. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Freetech Road Recycling Technology (Holdings) and its competitors. According to the industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1135 out of 1708 companies in the Construction industry, placing it in the top 66.5%.
Is Freetech Road Recycling Technology (Holdings)'s Beneish M-Score too high?
Freetech Road Recycling Technology (Holdings)'s current Beneish M-Score is -2.22. Based on the distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1135 out of 1708 companies in the Construction industry, which is below the industry midpoint.
How does Freetech Road Recycling Technology (Holdings)'s Beneish M-Score compare to competitors?
According to the Construction industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1135 out of 1708 companies for Beneish M-Score. This places Freetech Road Recycling Technology (Holdings) 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 Construction company?
A good Beneish M-Score depends on the Construction 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 Freetech Road Recycling Technology (Holdings) and its competitors. Freetech Road Recycling Technology (Holdings)'s current Beneish M-Score is -2.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freetech Road Recycling Technology (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Freetech Road Recycling Technology (Holdings) (HKSE:06888) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.08 — trading 14.3% above its estimated fair value. The current Beneish M-Score is -2.22. 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 Freetech Road Recycling Technology (Holdings) (HKSE:06888), the current Beneish M-Score is -2.22 as of Sep. 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.

Freetech Road Recycling Technology (Holdings) Business Description

Address 18 Whitfield Road, Room 2501, 25th Floor, Citicorp Centre, Causeway Bay, Hong Kong, HKG
Freetech Road Recycling Technology (Holdings) Ltd is an investment holding company engaged in the manufacturing and sale of road maintenance equipment and the provision of road maintenance services in the People's Republic of China (the PRC). The operating segments of the group are the APM service segment, where it provides APM services under the registered trademark (Road Doctor) to repair damaged asphalt pavement surfaces, and the APM equipment segment, where it manufactures and sells a wide range of APM equipment. It derives the majority of its revenue from APM Services. The company has a business presence in Mainland China and other overseas markets.