FarGlory Life Insurance Co (ROCO:5859) Beneish M-Score: -2.40 (As of Jul. 12, 2026)


ROCO:5859 FarGlory Life Insurance Co Ltd ROCO:5859
55 GF Score
Price NT$13.40
GF Value NT$20.35
Valuation Possible Value Trap
! 3 Warning Signs
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What is FarGlory Life Insurance Co Beneish M-Score?

FarGlory Life Insurance Co ROCO:5859 55 Beneish M-Score is -2.40 as of Jul. 12, 2026. GuruFocus rates ROCO:5859 with a GF Score™ of 55/100 and a GF Value™ of NT$20.35 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 399 Insurance companies, FarGlory Life Insurance Co ranks worse than 62.16% 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for FarGlory Life Insurance Co's Beneish M-Score or its related term are showing as below:

ROCO:5859' s Beneish M-Score Range Over the Past 10 Years
Min: -3   Med: -2.62   Max: -2.25
Current: -2.4

During the past 13 years, the highest Beneish M-Score of FarGlory Life Insurance Co was -2.25. The lowest was -3.00. And the median was -2.62.

ROCO:5859
55GF Score
FarGlory Life Insurance Co Ltd ROCO:5859
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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FarGlory Life Insurance Co 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 FarGlory Life Insurance Co 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 * 1.401+0.528 * 1+0.404 * 1.0001+0.892 * 0.8427+0.115 * 0.9701
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2571+4.679 * -0.011937-0.327 * 1.1485
=-2.40

* 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 NT$7,153 Mil.
Revenue was NT$68,737 Mil.
Gross Profit was NT$68,737 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$786,029 Mil.
Property, Plant and Equipment(Net PPE) was NT$6,245 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$203 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,569 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$207 Mil.
Net Income was NT$4,629 Mil.
Gross Profit was NT$-25,020 Mil.
Cash Flow from Operations was NT$39,032 Mil.
 Total Receivables was NT$6,060 Mil.
Revenue was NT$81,572 Mil.
Gross Profit was NT$81,572 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$766,529 Mil.
Property, Plant and Equipment(Net PPE) was NT$6,152 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$194 Mil.
Selling, General, & Admin. Expense(SGA) was NT$2,425 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$175 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)
=(7153.419 / 68736.757) / (6059.56 / 81571.579)
=0.10407 / 0.074285
=1.401

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)
=(81571.579 / 81571.579) / (68736.757 / 68736.757)
=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 + 6245.333) / 786029.279) / (1 - (0 + 6152.449) / 766529.085)
=0.992055 / 0.991974
=1.0001

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
=68736.757 / 81571.579
=0.8427

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))
=(193.957 / (193.957 + 6152.449)) / (203.162 / (203.162 + 6245.333))
=0.030562 / 0.031505
=0.9701

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)
=(2568.705 / 68736.757) / (2424.833 / 81571.579)
=0.03737 / 0.029726
=1.2571

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)
=((207.065 + 0) / 786029.279) / ((175.388 + 0) / 766529.085)
=0.000263 / 0.000229
=1.1485

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
=(4628.932 - -25020.185 - 39031.998) / 786029.279
=-0.011937

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.

FarGlory Life Insurance Co has a M-score of -2.40 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 -2.40 mean?
FarGlory Life Insurance Co (ROCO:5859) has a Beneish M-Score of -2.40 as of Jul. 12, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on FarGlory Life Insurance Co and its competitors. According to the industry distribution chart, FarGlory Life Insurance Co ranks #248 out of 399 companies in the Insurance industry, placing it in the top 62.2%.
Is FarGlory Life Insurance Co's Beneish M-Score too high?
FarGlory Life Insurance Co's current Beneish M-Score is -2.40. Based on the distribution chart, FarGlory Life Insurance Co ranks #248 out of 399 companies in the Insurance industry, which is below the industry midpoint. Overall, FarGlory Life Insurance Co has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FarGlory Life Insurance Co's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, FarGlory Life Insurance Co ranks #248 out of 399 companies for Beneish M-Score. This places FarGlory Life Insurance Co 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 FarGlory Life Insurance Co and its competitors. FarGlory Life Insurance Co's current Beneish M-Score is -2.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FarGlory Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, FarGlory Life Insurance Co (ROCO:5859) is currently considered Possible Value Trap. The stock's GF Value™ is NT$20.35, compared to a current price of NT$13.40 — trading 34.2% below its estimated fair value. The current Beneish M-Score is -2.40. FarGlory Life Insurance Co's overall GF Score™ is 55/100 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 FarGlory Life Insurance Co (ROCO:5859), the current Beneish M-Score is -2.40 as of Jul. 12, 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 FarGlory Life Insurance Co (ROCO:5859) Overvalued in 2026?

Based on GuruFocus' analysis, FarGlory Life Insurance Co stock appears to be undervalued. The current stock price of NT$13.40 is trading 34.2% below its estimated GF Value™ of NT$20.35. GuruFocus considers FarGlory Life Insurance Co to be Possible Value Trap.

Key valuation signals for ROCO:5859:

  • Beneish M-Score: -2.40
  • GF Value™: NT$20.35 vs. price of NT$13.40 (34.2% below fair value)
  • GF Score™: 55/100 with 3 warning signs

No single metric tells the full story. See the ROCO:5859 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

FarGlory Life Insurance Co Business Description

Address No.1, Songgao Road, 28th Floor, Taipei, TWN
FarGlory Life Insurance Co Ltd is a Taiwan based life insurance company. The company offers products including personal life insurance, personal health insurance, personal accident insurance, annuity insurance, group insurance and investment-type insurance.
55GF Score

Get the complete analysis for ROCO:5859

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

NT$13.40
Price
NT$20.35
GF Value