Chemring Group (LSE:CHG) Beneish M-Score: -2.61 (As of Jun. 26, 2026)


LSE:CHG Chemring Group PLC LSE:CHG
86 GF Score
Price £4.81
GF Value £4.30
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Chemring Group Beneish M-Score?

Chemring Group LSE:CHG -0.91% 86 Beneish M-Score is -2.61 as of Jun. 26, 2026. GuruFocus rates LSE:CHG with a GF Score™ of 86/100 and a GF Value™ of £4.30 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 326 Aerospace & Defense companies, Chemring Group ranks better than 65.34% 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:CHG' s Beneish M-Score Range Over the Past 10 Years
Min: -4.09   Med: -2.71   Max: -2.34
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Chemring Group was -2.34. The lowest was -4.09. And the median was -2.71.

Chemring Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Chemring 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.

Chemring Group Beneish M-Score Chart

Chemring Group Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.73 -2.70 -2.88 -2.71 -2.61

Chemring Group Semi-Annual Data
Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25 Apr26
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 -2.71 0.00 -2.61 0.00

LSE:CHG vs GE, RTX, BA: Beneish M-Score Comparison

For the Aerospace & Defense subindustry, Chemring 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.

Chemring Group Beneish M-Score vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Chemring Group's Beneish M-Score distribution charts can be found below:

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


LSE:CHG
86GF Score
Chemring Group PLC LSE:CHG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chemring Group 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 Chemring 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 * 1.098+0.528 * 1+0.404 * 1.0529+0.892 * 1.0188+0.115 * 1.0915
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.049705-0.327 * 1.0987
=-2.61

* 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 (Oct25) TTM:Last Year (Oct24) TTM:
Total Receivables was £92.4 Mil.
Revenue was £497.5 Mil.
Gross Profit was £497.5 Mil.
Total Current Assets was £331.8 Mil.
Total Assets was £863.1 Mil.
Property, Plant and Equipment(Net PPE) was £354.7 Mil.
Depreciation, Depletion and Amortization(DDA) was £26.8 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £201.4 Mil.
Long-Term Debt & Capital Lease Obligation was £104.0 Mil.
Net Income was £48.2 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £91.1 Mil.
 Total Receivables was £82.6 Mil.
Revenue was £488.3 Mil.
Gross Profit was £488.3 Mil.
Total Current Assets was £269.8 Mil.
Total Assets was £692.1 Mil.
Property, Plant and Equipment(Net PPE) was £287.8 Mil.
Depreciation, Depletion and Amortization(DDA) was £23.9 Mil.
Selling, General, & Admin. Expense(SGA) was £0.0 Mil.
Total Current Liabilities was £170.3 Mil.
Long-Term Debt & Capital Lease Obligation was £52.6 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)
=(92.4 / 497.5) / (82.6 / 488.3)
=0.185729 / 0.169158
=1.098

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)
=(488.3 / 488.3) / (497.5 / 497.5)
=1 / 1
=1

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 - (331.8 + 354.7) / 863.1) / (1 - (269.8 + 287.8) / 692.1)
=0.204611 / 0.194336
=1.0529

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
=497.5 / 488.3
=1.0188

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))
=(23.9 / (23.9 + 287.8)) / (26.8 / (26.8 + 354.7))
=0.076676 / 0.070249
=1.0915

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 / 497.5) / (0 / 488.3)
=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)
=((104 + 201.4) / 863.1) / ((52.6 + 170.3) / 692.1)
=0.353841 / 0.322063
=1.0987

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
=(48.2 - 0 - 91.1) / 863.1
=-0.049705

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.

Chemring Group has a M-score of -2.61 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 -2.61 mean?
Chemring Group (LSE:CHG) has a Beneish M-Score of -2.61 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Chemring Group and its competitors. According to the industry distribution chart, Chemring Group ranks #113 out of 326 companies in the Aerospace & Defense industry, placing it in the top 34.7%.
Is Chemring Group's Beneish M-Score too high?
Chemring Group's current Beneish M-Score is -2.61. Based on the distribution chart, Chemring Group ranks #113 out of 326 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Beneish M-Score compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #113 out of 326 companies for Beneish M-Score. This puts Chemring Group 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 Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense 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 Chemring Group and its competitors. Chemring Group's current Beneish M-Score is -2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.30, compared to a current price of £4.81 — trading 11.9% above its estimated fair value. The current Beneish M-Score is -2.61. Chemring Group's overall GF Score™ is 86/100 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 Chemring Group (LSE:CHG), the current Beneish M-Score is -2.61 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 Chemring Group (LSE:CHG) Overvalued in 2026?

Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued. The current stock price of £4.81 is trading 11.9% above its estimated GF Value™ of £4.30. GuruFocus considers Chemring Group to be Modestly Overvalued.

Key valuation signals for LSE:CHG:

  • Beneish M-Score: -2.61
  • GF Value™: £4.30 vs. price of £4.81 (11.9% above fair value)
  • GF Score™: 86/100 with 4 warning signs

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

Chemring Group Business Description

Address Old Salisbury Lane, Roke Manor, Romsey, Hampshire, GBR, SO51 0ZN
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
86GF Score

Get the complete analysis for LSE:CHG

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

£4.81
Price
£4.30
GF Value