Life Healthcare Group Holdings (JSE:LHC) Beneish M-Score: -2.70 (As of Jun. 26, 2026)


JSE:LHC Life Healthcare Group Holdings Ltd JSE:LHC
56 GF Score
Price R10.43
GF Value R15.61
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Life Healthcare Group Holdings Beneish M-Score?

Life Healthcare Group Holdings JSE:LHC +1.16% 56 Beneish M-Score is -2.70 as of Jun. 26, 2026. GuruFocus rates JSE:LHC with a GF Score™ of 56/100 and a GF Value™ of R15.61 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 632 Healthcare Providers & Services companies, Life Healthcare Group Holdings ranks better than 59.97% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Life Healthcare Group Holdings's Beneish M-Score or its related term are showing as below:

JSE:LHC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.44   Med: -2.72   Max: -1.64
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Life Healthcare Group Holdings was -1.64. The lowest was -3.44. And the median was -2.72.

Life Healthcare Group Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Life Healthcare Group 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.

Life Healthcare Group Holdings Beneish M-Score Chart

Life Healthcare Group Holdings Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.82 -2.57 -3.44 -1.64 -2.70

Life Healthcare Group Holdings Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 -1.64 0.00 -2.70 0.00

JSE:LHC vs HCA, THC, DVA: Beneish M-Score Comparison

For the Medical Care Facilities subindustry, Life Healthcare Group 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.

Life Healthcare Group Holdings Beneish M-Score vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Life Healthcare Group Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Life Healthcare Group Holdings's Beneish M-Score falls into.


JSE:LHC
56GF Score
Life Healthcare Group Holdings Ltd JSE:LHC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Life Healthcare Group 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 Life Healthcare Group 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 * 0.9123+0.528 * 1.0058+0.404 * 0.9288+0.892 * 1.0604+0.115 * 0.9786
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0296+4.679 * -0.021837-0.327 * 1.1823
=-2.70

* 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 (Sep25) TTM:Last Year (Sep24) TTM:
Total Receivables was R3,738 Mil.
Revenue was R25,104 Mil.
Gross Profit was R17,187 Mil.
Total Current Assets was R8,465 Mil.
Total Assets was R25,690 Mil.
Property, Plant and Equipment(Net PPE) was R11,301 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,312 Mil.
Selling, General, & Admin. Expense(SGA) was R1,213 Mil.
Total Current Liabilities was R7,046 Mil.
Long-Term Debt & Capital Lease Obligation was R3,764 Mil.
Net Income was R3,864 Mil.
Gross Profit was R0 Mil.
Cash Flow from Operations was R4,425 Mil.
 Total Receivables was R3,864 Mil.
Revenue was R23,674 Mil.
Gross Profit was R16,302 Mil.
Total Current Assets was R7,535 Mil.
Total Assets was R24,344 Mil.
Property, Plant and Equipment(Net PPE) was R10,765 Mil.
Depreciation, Depletion and Amortization(DDA) was R1,220 Mil.
Selling, General, & Admin. Expense(SGA) was R1,111 Mil.
Total Current Liabilities was R5,270 Mil.
Long-Term Debt & Capital Lease Obligation was R3,394 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)
=(3738 / 25104) / (3864 / 23674)
=0.148901 / 0.163217
=0.9123

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)
=(16302 / 23674) / (17187 / 25104)
=0.688604 / 0.684632
=1.0058

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 - (8465 + 11301) / 25690) / (1 - (7535 + 10765) / 24344)
=0.230596 / 0.248275
=0.9288

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
=25104 / 23674
=1.0604

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))
=(1220 / (1220 + 10765)) / (1312 / (1312 + 11301))
=0.101794 / 0.10402
=0.9786

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)
=(1213 / 25104) / (1111 / 23674)
=0.048319 / 0.046929
=1.0296

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)
=((3764 + 7046) / 25690) / ((3394 + 5270) / 24344)
=0.420786 / 0.355899
=1.1823

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
=(3864 - 0 - 4425) / 25690
=-0.021837

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.

Life Healthcare Group Holdings has a M-score of -2.70 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 -2.70 mean?
Life Healthcare Group Holdings (JSE:LHC) has a Beneish M-Score of -2.70 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Life Healthcare Group Holdings and its competitors. According to the industry distribution chart, Life Healthcare Group Holdings ranks #253 out of 632 companies in the Healthcare Providers & Services industry, placing it in the top 40%.
Is Life Healthcare Group Holdings' Beneish M-Score too high?
Life Healthcare Group Holdings' current Beneish M-Score is -2.70. Based on the distribution chart, Life Healthcare Group Holdings ranks #253 out of 632 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Life Healthcare Group Holdings has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Life Healthcare Group Holdings' Beneish M-Score compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Life Healthcare Group Holdings ranks #253 out of 632 companies for Beneish M-Score. This puts Life Healthcare Group Holdings 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 Healthcare Providers & Services company?
A good Beneish M-Score depends on the Healthcare Providers & Services 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 Life Healthcare Group Holdings and its competitors. Life Healthcare Group Holdings's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Healthcare Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Healthcare Group Holdings (JSE:LHC) is currently considered Possible Value Trap. The stock's GF Value™ is R15.61, compared to a current price of R10.43 — trading 33.2% below its estimated fair value. The current Beneish M-Score is -2.70. Life Healthcare Group Holdings' overall GF Score™ is 56/100 with 3 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 Life Healthcare Group Holdings (JSE:LHC), the current Beneish M-Score is -2.70 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 Life Healthcare Group Holdings (JSE:LHC) Overvalued in 2026?

Based on GuruFocus' analysis, Life Healthcare Group Holdings stock appears to be undervalued. The current stock price of R10.43 is trading 33.2% below its estimated GF Value™ of R15.61. GuruFocus considers Life Healthcare Group Holdings to be Possible Value Trap.

Key valuation signals for JSE:LHC:

  • Beneish M-Score: -2.70
  • GF Value™: R15.61 vs. price of R10.43 (33.2% below fair value)
  • GF Score™: 56/100 with 3 warning signs

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

Life Healthcare Group Holdings Business Description

Address 203 Oxford Road, Oxford Parks, Corner Eastwood and Oxford Roads, Dunkeld, Johannesburg, GT, ZAF, 2196
Life Healthcare Group Holdings Ltd is a private healthcare provider in southern Africa, prominently serving the medically insured market. The company is in the business of providing hospital and complementary services (which include mental healthcare, acute rehabilitation, renal dialysis, oncology and diagnostics) and healthcare services. It operates via three segments: Hospitals segment (acute hospitals), the Complementary Services segment (mental health, acute rehabilitation, renal dialysis, oncology and diagnostics) and the Healthcare Services segment (Life Nkanyisa and Life Health Solutions). The majority of revenue is derived from the hospitals segment. Geographically, the company generates the maximum revenue from Southern Africa.
56GF Score

Get the complete analysis for JSE:LHC

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

R10.43
Price
R15.61
GF Value