Bama Tea Co (HKSE:06980) Beneish M-Score: -2.58 (As of Aug. 22, 2026)

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HKSE:06980 Bama Tea Co Ltd HKSE:06980
23 GF Score
Price HK$29.20
! 1 Warning Sign
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What is Bama Tea Co Beneish M-Score?

Bama Tea Co HKSE:06980 +4.73% 23 Beneish M-Score is -2.58 as of Aug. 22, 2026. GuruFocus rates HKSE:06980 with a GF Score™ of 23/100. The stock has 1 warning sign investors should review. Among 1,858 Consumer Packaged Goods companies, Bama Tea Co ranks better than 54.47% 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:06980' s Beneish M-Score Range Over the Past 10 Years
Min: -2.58   Med: -2.1   Max: -1.62
Current: -2.58

During the past 4 years, the highest Beneish M-Score of Bama Tea Co was -1.62. The lowest was -2.58. And the median was -2.10.

Bama Tea Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Bama Tea 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.

Bama Tea Co Beneish M-Score Chart

Bama Tea Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -1.62 -2.58

Bama Tea Co Semi-Annual Data
Dec22 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial 0.00 0.00 -1.62 0.00 -2.58

HKSE:06980 vs KHC, GIS: Beneish M-Score Comparison

For the Packaged Foods subindustry, Bama Tea 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.

Bama Tea Co Beneish M-Score vs Consumer Packaged Goods Industry

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

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


HKSE:06980
23GF Score
Bama Tea Co Ltd HKSE:06980
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bama Tea 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 Bama Tea 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 * 1.0915+0.528 * 0.9893+0.404 * 0.7471+0.892 * 1.0603+0.115 * 1.0268
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0413+4.679 * -0.03718-0.327 * 0.8596
=-2.58

* 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$174 Mil.
Revenue was HK$2,426 Mil.
Gross Profit was HK$1,349 Mil.
Total Current Assets was HK$1,978 Mil.
Total Assets was HK$2,760 Mil.
Property, Plant and Equipment(Net PPE) was HK$697 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$141 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,011 Mil.
Total Current Liabilities was HK$742 Mil.
Long-Term Debt & Capital Lease Obligation was HK$127 Mil.
Net Income was HK$246 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$348 Mil.
 Total Receivables was HK$151 Mil.
Revenue was HK$2,288 Mil.
Gross Profit was HK$1,258 Mil.
Total Current Assets was HK$1,149 Mil.
Total Assets was HK$1,923 Mil.
Property, Plant and Equipment(Net PPE) was HK$695 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$145 Mil.
Selling, General, & Admin. Expense(SGA) was HK$916 Mil.
Total Current Liabilities was HK$568 Mil.
Long-Term Debt & Capital Lease Obligation was HK$136 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)
=(174.189 / 2426.361) / (150.504 / 2288.298)
=0.07179 / 0.065771
=1.0915

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)
=(1258.308 / 2288.298) / (1348.608 / 2426.361)
=0.549888 / 0.555815
=0.9893

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 - (1978.451 + 697.09) / 2760.337) / (1 - (1148.561 + 695.138) / 1922.759)
=0.030719 / 0.041118
=0.7471

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
=2426.361 / 2288.298
=1.0603

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))
=(144.966 / (144.966 + 695.138)) / (140.809 / (140.809 + 697.09))
=0.172557 / 0.16805
=1.0268

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)
=(1011.312 / 2426.361) / (915.906 / 2288.298)
=0.416802 / 0.400256
=1.0413

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)
=((126.563 + 742.463) / 2760.337) / ((136.455 + 567.743) / 1922.759)
=0.314826 / 0.366244
=0.8596

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
=(245.526 - 0 - 348.154) / 2760.337
=-0.03718

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.

Bama Tea Co has a M-score of -2.58 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 -2.58 mean?
Bama Tea Co (HKSE:06980) has a Beneish M-Score of -2.58 as of Aug. 22, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bama Tea Co and its competitors. According to the industry distribution chart, Bama Tea Co ranks #846 out of 1858 companies in the Consumer Packaged Goods industry, placing it in the top 45.5%.
Is Bama Tea Co's Beneish M-Score too high?
Bama Tea Co's current Beneish M-Score is -2.58. Based on the distribution chart, Bama Tea Co ranks #846 out of 1858 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Bama Tea Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Bama Tea Co's Beneish M-Score compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Bama Tea Co ranks #846 out of 1858 companies for Beneish M-Score. This puts Bama Tea Co in the upper 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 Bama Tea Co and its competitors. Bama Tea Co's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bama Tea Co stock overvalued right now?
Bama Tea Co (HKSE:06980) has a current Beneish M-Score of -2.58. The current Beneish M-Score is -2.58. Bama Tea Co's overall GF Score™ is 23/100 with 1 warning sign 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 Bama Tea Co (HKSE:06980), the current Beneish M-Score is -2.58 as of Aug. 22, 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.

Bama Tea Co Business Description

Address Dongmen South Road, Nanhu Street, 7th Floor, Huaduyuan Building, Luohu District, Guangdong Province, Shenzhen, CHN
Bama Tea Co Ltd is principally engaged in the processing, production, and sales of tea leaves and other tea products in the PRC. The company generates revenue through processing, production and sales of tea leaves and other tea products such as Sales of tea leaves, Sales of tea ware, Sales of tea snacks, and Sales of other products. Geographically, it derives all its revenue from PRC.
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.

HK$29.20
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