Hudaco Industries (JSE:HDC) Beneish M-Score: -2.79 (As of Jun. 26, 2026)

What is Hudaco Industries Beneish M-Score?

Hudaco Industries JSE:HDC +0.45% 91 Beneish M-Score is -2.79 as of Jun. 26, 2026. GuruFocus rates JSE:HDC with a GF Score™ of 91/100 and a GF Value™ of R189.20 (Fairly Valued). The stock has 1 warning sign investors should review. Among 151 Industrial Distribution companies, Hudaco Industries ranks better than 74.83% 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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:HDC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39 Med: -2.61 Max: -2.35
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Hudaco Industries was -2.35. The lowest was -3.39. And the median was -2.61.

Hudaco Industries Beneish M-Score Related Terms

Hudaco Industries Beneish M-Score Historical Data

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The historical data trend for Hudaco Industries'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.

Hudaco Industries Beneish M-Score Chart

Hudaco Industries Annual Data

Trend

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Nov24

Nov25

Beneish M-Score

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-2.69

-2.41

-2.43

-3.16

-2.79

Hudaco Industries Semi-Annual Data
	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23	May24	Nov24	May25	Nov25
Beneish M-Score	Get a 7-Day Free Trial															-2.43	0.00	-3.16	0.00	-2.79

JSE:HDC vs GWW, FAST, FERG: Beneish M-Score Comparison

For the Industrial Distribution subindustry, Hudaco Industries'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.

Hudaco Industries Beneish M-Score vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hudaco Industries's Beneish M-Score falls into.

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91GF Score

Hudaco Industries Ltd JSE:HDC

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

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Hudaco Industries 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 Hudaco Industries 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 * 1.0431

0.528 * 1.0067

0.404 * 0.946

0.892 * 1.044

0.115 * 1.0324

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.081067

0.327 * 0.9755

-2.79

This Year (Nov25) TTM:

Last Year (Nov24) TTM:

Total Receivables was R1,372 Mil.
Revenue was R8,748 Mil.
Gross Profit was R3,280 Mil.
Total Current Assets was R4,439 Mil.
Total Assets was R6,727 Mil.
Property, Plant and Equipment(Net PPE) was R826 Mil.
Depreciation, Depletion and Amortization(DDA) was R203 Mil.
Selling, General, & Admin. Expense(SGA) was R0 Mil.
Total Current Liabilities was R1,695 Mil.
Long-Term Debt & Capital Lease Obligation was R1,008 Mil.
Net Income was R574 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R1,120 Mil.

Total Receivables was R1,259 Mil.
Revenue was R8,379 Mil.
Gross Profit was R3,163 Mil.
Total Current Assets was R4,059 Mil.
Total Assets was R6,228 Mil.
Property, Plant and Equipment(Net PPE) was R738 Mil.
Depreciation, Depletion and Amortization(DDA) was R189 Mil.
Selling, General, & Admin. Expense(SGA) was R0 Mil.
Total Current Liabilities was R1,509 Mil.
Long-Term Debt & Capital Lease Obligation was R1,057 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)
	=	(1371.664 / 8748.359)	/	(1259.489 / 8379.253)
	=	0.156791	/	0.15031
	=	1.0431

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)
	=	(3162.904 / 8379.253)	/	(3280.195 / 8748.359)
	=	0.377468	/	0.37495
	=	1.0067

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 - (4438.81 + 826.116) / 6727.253)	/	(1 - (4059.076 + 738.027) / 6228.174)
	=	0.217374	/	0.229774
	=	0.946

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
	=	8748.359	/	8379.253
	=	1.044

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))
	=	(189.013 / (189.013 + 738.027))	/	(203.31 / (203.31 + 826.116))
	=	0.203889	/	0.197498
	=	1.0324

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)
	=	(0 / 8748.359)	/	(0 / 8379.253)
	=	0	/	0
	=	1

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)
	=	((1008.414 + 1695.274) / 6727.253)	/	((1056.998 + 1509.053) / 6228.174)
	=	0.401901	/	0.412007
	=	0.9755

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
	=	(574.267 - 0	-	1119.628)	/	6727.253
	=	-0.081067

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.

Hudaco Industries has a M-score of -2.79 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 -2.79 mean?

Hudaco Industries (JSE:HDC) has a Beneish M-Score of -2.79 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hudaco Industries and its competitors. According to the industry distribution chart, Hudaco Industries ranks #38 out of 151 companies in the Industrial Distribution industry, placing it in the top 25.2%.

Is Hudaco Industries' Beneish M-Score too high?

Hudaco Industries' current Beneish M-Score is -2.79. Based on the distribution chart, Hudaco Industries ranks #38 out of 151 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Hudaco Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Hudaco Industries' Beneish M-Score compare to GWW and FAST?

According to the Industrial Distribution industry distribution chart, Hudaco Industries ranks #38 out of 151 companies for Beneish M-Score. This puts Hudaco Industries 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 an Industrial Distribution company?

A good Beneish M-Score depends on the Industrial Distribution 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 Hudaco Industries and its competitors. Hudaco Industries's current Beneish M-Score is -2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Hudaco Industries stock overvalued right now?

Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R189.20, compared to a current price of R194.88 — trading 3% above its estimated fair value. The current Beneish M-Score is -2.79. Hudaco Industries' overall GF Score™ is 91/100 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 Hudaco Industries (JSE:HDC), the current Beneish M-Score is -2.79 as of Jun. 26, 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?

Based on GuruFocus' analysis, Hudaco Industries stock appears to be overvalued. The current stock price of R194.88 is trading 3% above its estimated GF Value™ of R189.20. GuruFocus considers Hudaco Industries to be Fairly Valued.

Key valuation signals for JSE:HDC:

Beneish M-Score: -2.79
GF Value™: R189.20 vs. price of R194.88 (3% above fair value)
GF Score™: 91/100 with 1 warning sign

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

Hudaco Industries Business Description

Industry Industrials Industrial Distribution

Comparable Companies JSE:IVT JSE:MMP GWW FAST FERG WCC WSO TSX:TIH LSE:DPLM QXO AIT TSX:FTT OSTO:ADDT B CNM OSTO:INDT OSTO:BEIJ B POOL MSM ASX:REH XMTR

Address Emerald Boulevard, Greenstone Hill, Building 9, 1st Floor, Greenstone Hill Office Park, Edenvale, GT, ZAF, 1609

Website https://www.hudaco.co.za

Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.

91GF Score

Get the complete analysis for JSE:HDC

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

R194.88

Price

R189.20

GF Value

View JSE:HDC Analysis

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