Labat Africa (JSE:LAB) Beneish M-Score: -3.80 (As of Jun. 25, 2026)


What is Labat Africa Beneish M-Score?

Labat Africa JSE:LAB +66.67% Beneish M-Score is -3.80 as of Jun. 25, 2026. The stock has 5 warning signs investors should review. Among 911 Drug Manufacturers companies, Labat Africa ranks better than 94.73% 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 -3.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:LAB' s Beneish M-Score Range Over the Past 10 Years
Min: -5.7   Med: -2.17   Max: 5.19
Current: -3.8

During the past 13 years, the highest Beneish M-Score of Labat Africa was 5.19. The lowest was -5.70. And the median was -2.17.

Labat Africa Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Labat Africa'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.

Labat Africa Beneish M-Score Chart

Labat Africa Annual Data
Trend Feb14 Feb15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 May23 May24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.91 -3.18 -2.92 -5.70 -3.80

Labat Africa Semi-Annual Data
Aug15 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
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 0.00 -3.80 0.00 5.19 0.00

JSE:LAB vs ZTS, UTHR, VTRS: Beneish M-Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.

Labat Africa Beneish M-Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Beneish M-Score distribution charts can be found below:

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


Labat Africa 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 Labat Africa 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 * 1.0589+0.528 * 0.6969+0.404 * 0.9128+0.892 * 0.9799+0.115 * 1.281
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.233368-0.327 * 1.2987
=-3.80

* 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 (May24) TTM:Last Year (May23) TTM:
Total Receivables was R9.0 Mil.
Revenue was R48.5 Mil.
Gross Profit was R29.8 Mil.
Total Current Assets was R75.1 Mil.
Total Assets was R123.4 Mil.
Property, Plant and Equipment(Net PPE) was R7.1 Mil.
Depreciation, Depletion and Amortization(DDA) was R8.9 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R93.6 Mil.
Long-Term Debt & Capital Lease Obligation was R6.5 Mil.
Net Income was R-25.8 Mil.
Gross Profit was R0.0 Mil.
Cash Flow from Operations was R3.0 Mil.
 Total Receivables was R8.7 Mil.
Revenue was R49.5 Mil.
Gross Profit was R21.2 Mil.
Total Current Assets was R75.2 Mil.
Total Assets was R132.9 Mil.
Property, Plant and Equipment(Net PPE) was R9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was R22.4 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R75.6 Mil.
Long-Term Debt & Capital Lease Obligation was R7.4 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)
=(9.026 / 48.536) / (8.699 / 49.534)
=0.185965 / 0.175617
=1.0589

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)
=(21.221 / 49.534) / (29.839 / 48.536)
=0.428413 / 0.614781
=0.6969

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 - (75.112 + 7.134) / 123.393) / (1 - (75.242 + 9.131) / 132.935)
=0.333463 / 0.365306
=0.9128

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
=48.536 / 49.534
=0.9799

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))
=(22.443 / (22.443 + 9.131)) / (8.893 / (8.893 + 7.134))
=0.710806 / 0.554876
=1.281

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 / 48.536) / (0 / 49.534)
=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)
=((6.484 + 93.627) / 123.393) / ((7.449 + 75.598) / 132.935)
=0.811318 / 0.624719
=1.2987

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
=(-25.804 - 0 - 2.992) / 123.393
=-0.233368

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.

Labat Africa has a M-score of -3.80 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 -3.80 mean?
Labat Africa (JSE:LAB) has a Beneish M-Score of -3.80 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #48 out of 911 companies in the Drug Manufacturers industry, placing it in the top 5.3%.
Is Labat Africa's Beneish M-Score too high?
Labat Africa's current Beneish M-Score is -3.80. Based on the distribution chart, Labat Africa ranks #48 out of 911 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Beneish M-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #48 out of 911 companies for Beneish M-Score. This places Labat Africa in the top 5% of its industry — outperforming the majority of peers. 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Labat Africa and its competitors. Labat Africa's current Beneish M-Score is -3.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Beneish M-Score is -3.80. 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 Labat Africa (JSE:LAB), the current Beneish M-Score is -3.80 as of Jun. 25, 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.

Labat Africa Business Description

Other Exchanges LAO:Germany
Address 75 Maude StreetSandown, The Leonardo 14th Floor, Sandown, Johannesburg, GT, ZAF, 1709
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.