China Banking (PHS:CBC) Beneish M-Score: -2.39 (As of Jul. 14, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

PHS:CBC China Banking Corp PHS:CBC
78 GF Score
Price ₱56.55
GF Value ₱58.44
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is China Banking Beneish M-Score?

China Banking PHS:CBC +0.27% 78 Beneish M-Score is -2.39 as of Jul. 14, 2026. GuruFocus rates PHS:CBC with a GF Score™ of 78/100 and a GF Value™ of ₱58.44 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,399 Banks companies, China Banking ranks worse than 51.54% 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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PHS:CBC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Med: -2.55   Max: -1.89
Current: -2.39

During the past 13 years, the highest Beneish M-Score of China Banking was -1.89. The lowest was -3.72. And the median was -2.55.

PHS:CBC
78GF Score
China Banking Corp PHS:CBC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Banking 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 China Banking 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+0.528 * 1+0.404 * 0.9995+0.892 * 1.1344+0.115 * 1.0405
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.882+4.679 * -0.00738-0.327 * 1.0561
=-2.39

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₱0 Mil.
Revenue was 17759.391 + 18463.507 + 17620.475 + 21198.915 = ₱75,042 Mil.
Gross Profit was 17759.391 + 18463.507 + 17620.475 + 21198.915 = ₱75,042 Mil.
Total Current Assets was ₱0 Mil.
Total Assets was ₱1,850,281 Mil.
Property, Plant and Equipment(Net PPE) was ₱11,733 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱2,744 Mil.
Selling, General, & Admin. Expense(SGA) was ₱2,836 Mil.
Total Current Liabilities was ₱0 Mil.
Long-Term Debt & Capital Lease Obligation was ₱125,206 Mil.
Net Income was 6782.756 + 7756.348 + 7202.238 + 6516.306 = ₱28,258 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₱0 Mil.
Cash Flow from Operations was 24444.606 + -11535.747 + 29065.264 + -60.648 = ₱41,913 Mil.
 Total Receivables was ₱0 Mil.
Revenue was 16392.128 + 18787.021 + 17139.907 + 13833.887 = ₱66,153 Mil.
Gross Profit was 16392.128 + 18787.021 + 17139.907 + 13833.887 = ₱66,153 Mil.
Total Current Assets was ₱0 Mil.
Total Assets was ₱1,651,400 Mil.
Property, Plant and Equipment(Net PPE) was ₱9,625 Mil.
Depreciation, Depletion and Amortization(DDA) was ₱2,364 Mil.
Selling, General, & Admin. Expense(SGA) was ₱2,835 Mil.
Total Current Liabilities was ₱0 Mil.
Long-Term Debt & Capital Lease Obligation was ₱105,816 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)
=(0 / 75042.288) / (0 / 66152.943)
=0 / 0
=1

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)
=(66152.943 / 66152.943) / (75042.288 / 75042.288)
=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 + 11732.983) / 1850280.901) / (1 - (0 + 9624.607) / 1651400.386)
=0.993659 / 0.994172
=0.9995

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
=75042.288 / 66152.943
=1.1344

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))
=(2364.185 / (2364.185 + 9624.607)) / (2743.823 / (2743.823 + 11732.983))
=0.1972 / 0.189532
=1.0405

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)
=(2835.968 / 75042.288) / (2834.577 / 66152.943)
=0.037792 / 0.042849
=0.882

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)
=((125206.276 + 0) / 1850280.901) / ((105816.048 + 0) / 1651400.386)
=0.067669 / 0.064077
=1.0561

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
=(28257.648 - 0 - 41913.475) / 1850280.901
=-0.00738

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.

China Banking has a M-score of -2.39 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 -2.39 mean?
China Banking (PHS:CBC) has a Beneish M-Score of -2.39 as of Jul. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Banking and its competitors. According to the industry distribution chart, China Banking ranks #721 out of 1399 companies in the Banks industry, placing it in the top 51.5%.
Is China Banking's Beneish M-Score too high?
China Banking's current Beneish M-Score is -2.39. Based on the distribution chart, China Banking ranks #721 out of 1399 companies in the Banks industry, which is below the industry midpoint. Overall, China Banking has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Banking's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, China Banking ranks #721 out of 1399 companies for Beneish M-Score. This places China Banking in the lower 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 Banks company?
A good Beneish M-Score depends on the Banks 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 China Banking and its competitors. China Banking's current Beneish M-Score is -2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Banking stock overvalued right now?
Based on GuruFocus' analysis, China Banking (PHS:CBC) is currently considered Fairly Valued. The stock's GF Value™ is ₱58.44, compared to a current price of ₱56.55 — trading 3.2% below its estimated fair value. The current Beneish M-Score is -2.39. China Banking's overall GF Score™ is 78/100 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 China Banking (PHS:CBC), the current Beneish M-Score is -2.39 as of Jul. 14, 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 China Banking (PHS:CBC) Overvalued in 2026?

Based on GuruFocus' analysis, China Banking stock appears to be undervalued. The current stock price of ₱56.55 is trading 3.2% below its estimated GF Value™ of ₱58.44. GuruFocus considers China Banking to be Fairly Valued.

Key valuation signals for PHS:CBC:

  • Beneish M-Score: -2.39
  • GF Value™: ₱58.44 vs. price of ₱56.55 (3.2% below fair value)
  • GF Score™: 78/100 with 3 warning signs

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

China Banking Business Description

Address 8745 Paseo de Roxas Corner Villar Street, P.O. 2182, 11th Floor, China Bank Building, Makati City, PHL, 1226
China Banking Corp is a commercial bank engaged in corporate and SME lending, retail loans including mortgage and auto loans, treasury and foreign exchange trading, trust and investment management, wealth management, cash management, and insurance products. The group's five business segments, namely, Institutional Banking, Consumer Banking, Retail Banking Business, Financial Markets, and Others, which include credit management, thrift banking business, operations and financial control, and other support services. The majority of the company's revenue comes from the Retail Banking Business.
78GF Score

Get the complete analysis for PHS:CBC

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

₱56.55
Price
₱58.44
GF Value