LU (Lufax Holding) Beneish M-Score: -2.93 (As of Jun. 26, 2026)


LU Lufax Holding Ltd LU
49 GF Score
Price $1.23
GF Value $2.62
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Lufax Holding Beneish M-Score?

Lufax Holding LU -3.91% 49 Beneish M-Score is -2.93 as of Jun. 26, 2026. GuruFocus rates LU with a GF Score™ of 49/100 and a GF Value™ of $2.62 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 483 Credit Services companies, Lufax Holding ranks better than 83.85% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.49   Max: -1.85
Current: -2.93

During the past 10 years, the highest Beneish M-Score of Lufax Holding was -1.85. The lowest was -3.28. And the median was -2.49.

LU
49GF Score
Lufax Holding Ltd LU
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Lufax Holding 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 Lufax Holding 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 * 0.6142+0.528 * 1+0.404 * 1.0003+0.892 * 1.2455+0.115 * 1.1618
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6656+4.679 * -0.070013-0.327 * 1.1951
=-2.93

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was $573 Mil.
Revenue was $3,282 Mil.
Gross Profit was $3,282 Mil.
Total Current Assets was $0 Mil.
Total Assets was $29,548 Mil.
Property, Plant and Equipment(Net PPE) was $45 Mil.
Depreciation, Depletion and Amortization(DDA) was $39 Mil.
Selling, General, & Admin. Expense(SGA) was $846 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $9,960 Mil.
Net Income was $-298 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $1,771 Mil.
 Total Receivables was $749 Mil.
Revenue was $2,635 Mil.
Gross Profit was $2,635 Mil.
Total Current Assets was $0 Mil.
Total Assets was $27,956 Mil.
Property, Plant and Equipment(Net PPE) was $51 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General, & Admin. Expense(SGA) was $1,021 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $7,884 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)
=(573.253 / 3281.598) / (749.421 / 2634.793)
=0.174687 / 0.284433
=0.6142

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)
=(2634.793 / 2634.793) / (3281.598 / 3281.598)
=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 - (0 + 45.386) / 29548.309) / (1 - (0 + 50.912) / 27955.642)
=0.998464 / 0.998179
=1.0003

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
=3281.598 / 2634.793
=1.2455

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))
=(58.765 / (58.765 + 50.912)) / (38.845 / (38.845 + 45.386))
=0.535801 / 0.461172
=1.1618

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)
=(845.938 / 3281.598) / (1020.509 / 2634.793)
=0.257782 / 0.38732
=0.6656

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)
=((9959.606 + 0) / 29548.309) / ((7884.493 + 0) / 27955.642)
=0.337062 / 0.282036
=1.1951

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
=(-297.83 - 0 - 1770.935) / 29548.309
=-0.070013

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.

Lufax Holding has a M-score of -2.93 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 -2.93 mean?
Lufax Holding (LU) has a Beneish M-Score of -2.93 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lufax Holding and its competitors. According to the industry distribution chart, Lufax Holding ranks #78 out of 483 companies in the Credit Services industry, placing it in the top 16.1%.
Is Lufax Holding's Beneish M-Score too high?
Lufax Holding's current Beneish M-Score is -2.93. Based on the distribution chart, Lufax Holding ranks #78 out of 483 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Lufax Holding has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lufax Holding's Beneish M-Score compare to ATLC and FINV?
According to the Credit Services industry distribution chart, Lufax Holding ranks #78 out of 483 companies for Beneish M-Score. This places Lufax Holding in the top 16% 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 Credit Services company?
A good Beneish M-Score depends on the Credit 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 Lufax Holding and its competitors. Lufax Holding's current Beneish M-Score is -2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lufax Holding stock overvalued right now?
Based on GuruFocus' analysis, Lufax Holding (LU) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.62, compared to a current price of $1.23 — trading 53.1% below its estimated fair value. The current Beneish M-Score is -2.93. Lufax Holding's overall GF Score™ is 49/100 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 Lufax Holding (LU), the current Beneish M-Score is -2.93 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 Lufax Holding (LU) Overvalued in 2026?

Based on GuruFocus' analysis, Lufax Holding stock appears to be undervalued. The current stock price of $1.23 is trading 53.1% below its estimated GF Value™ of $2.62. GuruFocus considers Lufax Holding to be Significantly Undervalued.

Key valuation signals for LU:

  • Beneish M-Score: -2.93
  • GF Value™: $2.62 vs. price of $1.23 (53.1% below fair value)
  • GF Score™: 49/100 with 1 warning sign

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

Lufax Holding Business Description

Other Exchanges 0VU0:Germany
Address Lujiazui Ring Road, 18th Floor, No. 1333, Pudong New District, Shanghai, CHN
Lufax Holding Ltd is an investment holding company, together with its consolidated subsidiaries, engaged in core retail credit and enablement business to both borrowers and institutions in the People's Republic of China. The group's segments are Lending-related business, which provides Retail credit and enablement, consumer finance loans, and Digital banking business, including Retail banking and SME banking.
49GF Score

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

$1.23
Price
$2.62
GF Value