Hongli GroupHLP +8.35%36 Beneish M-Score is -1.82 as of Jun. 27, 2026. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 592 Steel companies, Hongli Group ranks worse than 78.38% 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 -1.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Hongli Group's Beneish M-Score or its related term are showing as below:
HLP'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.43 Med: -2.14 Max: -1.2
Current: -1.82
During the past 7 years, the highest Beneish M-Score of Hongli Group was -1.20. The lowest was -2.43. And the median was -2.14.
Hongli Group Beneish M-Score Related Terms
Hongli Group Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Hongli Group'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.
HLP vs HUDI, ZKIN, INHD: Beneish M-Score Comparison
For the Steel subindustry, Hongli Group'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.
Hongli Group Beneish M-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Hongli Group's Beneish M-Score falls into.
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 Hongli Group 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 * 1.2128
+
0.528 * 0.9846
+
0.404 * 0.9243
+
0.892 * 1.3896
+
0.115 * 1.3448
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.4018
+
4.679 * 0.011871
-
0.327 * 1.1227
=
-1.82
* 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.
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.
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))
=
(0.943 / (0.943 + 10.386))
/
(0.811 / (0.811 + 12.292))
=
0.083238
/
0.061894
=
1.3448
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
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
=
(1.943 - 0.208
-
0.878)
/
72.191
=
0.011871
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.
Hongli Group has a M-score of -1.82 suggests that the company is unlikely to be a manipulator.
Hongli Group (HLP) has a Beneish M-Score of -1.82 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hongli Group and its competitors. According to the industry distribution chart, Hongli Group ranks #464 out of 592 companies in the Steel industry, placing it in the top 78.4%.
Is Hongli Group's Beneish M-Score too high?
Hongli Group's current Beneish M-Score is -1.82. Based on the distribution chart, Hongli Group ranks #464 out of 592 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Hongli Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's Beneish M-Score compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #464 out of 592 companies for Beneish M-Score. This places Hongli Group 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 Steel company?
A good Beneish M-Score depends on the Steel 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 Hongli Group and its competitors. Hongli Group's current Beneish M-Score is -1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.53 — trading 50.5% above its estimated fair value. The current Beneish M-Score is -1.82. Hongli Group's overall GF Score™ is 36/100 with 4 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 Hongli Group (HLP), the current Beneish M-Score is -1.82 as of Jun. 27, 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
Beneish M-Score: -1.82
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
36GF Score
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