Taipei Star Bank (ROCO:5863) Beneish M-Score: -2.40 (As of Jun. 27, 2026)


ROCO:5863 Taipei Star Bank ROCO:5863
60 GF Score
Price NT$11.20
GF Value NT$14.26
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Taipei Star Bank Beneish M-Score?

Taipei Star Bank ROCO:5863 +2.75% 60 Beneish M-Score is -2.40 as of Jun. 27, 2026. GuruFocus rates ROCO:5863 with a GF Score™ of 60/100 and a GF Value™ of NT$14.26 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,397 Banks companies, Taipei Star Bank ranks better than 50.68% 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 Taipei Star Bank's Beneish M-Score or its related term are showing as below:

ROCO:5863' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87   Med: -2.45   Max: -2.22
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Taipei Star Bank was -2.22. The lowest was -2.87. And the median was -2.45.

ROCO:5863
60GF Score
Taipei Star Bank ROCO:5863
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Taipei Star Bank 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 Taipei Star Bank 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 * 1.001+0.892 * 1.1353+0.115 * 1.0516
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0317+4.679 * 0.007015-0.327 * 1.2401
=-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$0 Mil.
Revenue was NT$1,342 Mil.
Gross Profit was NT$1,342 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$96,717 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,832 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$75 Mil.
Selling, General, & Admin. Expense(SGA) was NT$570 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$1,732 Mil.
Net Income was NT$267 Mil.
Gross Profit was NT$0 Mil.
Cash Flow from Operations was NT$-411 Mil.
 Total Receivables was NT$0 Mil.
Revenue was NT$1,182 Mil.
Gross Profit was NT$1,182 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$92,609 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,844 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$79 Mil.
Selling, General, & Admin. Expense(SGA) was NT$487 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$1,337 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 / 1342.301) / (0 / 1182.369)
=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)
=(1182.369 / 1182.369) / (1342.301 / 1342.301)
=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 + 1831.894) / 96717.224) / (1 - (0 + 1843.982) / 92608.814)
=0.981059 / 0.980088
=1.001

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
=1342.301 / 1182.369
=1.1353

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))
=(79.405 / (79.405 + 1843.982)) / (74.857 / (74.857 + 1831.894))
=0.041284 / 0.039259
=1.0516

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)
=(570.493 / 1342.301) / (487.072 / 1182.369)
=0.425011 / 0.411946
=1.0317

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)
=((1732.127 + 0) / 96717.224) / ((1337.476 + 0) / 92608.814)
=0.017909 / 0.014442
=1.2401

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
=(267.453 - 0 - -411.059) / 96717.224
=0.007015

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.

Taipei Star Bank 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?
Taipei Star Bank (ROCO:5863) has a Beneish M-Score of -2.40 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Taipei Star Bank and its competitors. According to the industry distribution chart, Taipei Star Bank ranks #689 out of 1397 companies in the Banks industry, placing it in the top 49.3%.
Is Taipei Star Bank's Beneish M-Score too high?
Taipei Star Bank's current Beneish M-Score is -2.40. Based on the distribution chart, Taipei Star Bank ranks #689 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, Taipei Star Bank has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taipei Star Bank's Beneish M-Score compare to PNC and USB?
According to the Banks industry distribution chart, Taipei Star Bank ranks #689 out of 1397 companies for Beneish M-Score. This puts Taipei Star Bank 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 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 Taipei Star Bank and its competitors. Taipei Star Bank'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 Taipei Star Bank stock overvalued right now?
Based on GuruFocus' analysis, Taipei Star Bank (ROCO:5863) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$14.26, compared to a current price of NT$11.20 — trading 21.5% below its estimated fair value. The current Beneish M-Score is -2.40. Taipei Star Bank's overall GF Score™ is 60/100 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 Taipei Star Bank (ROCO:5863), the current Beneish M-Score is -2.40 as of Jun. 27, 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 Taipei Star Bank (ROCO:5863) Overvalued in 2026?

Based on GuruFocus' analysis, Taipei Star Bank stock appears to be undervalued. The current stock price of NT$11.20 is trading 21.5% below its estimated GF Value™ of NT$14.26. GuruFocus considers Taipei Star Bank to be Modestly Undervalued.

Key valuation signals for ROCO:5863:

  • Beneish M-Score: -2.40
  • GF Value™: NT$14.26 vs. price of NT$11.20 (21.5% below fair value)
  • GF Score™: 60/100 with 3 warning signs

No single metric tells the full story. See the ROCO:5863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Taipei Star Bank Business Description

Address No.133, Sector 2, Yanping N. Road, Datong District, Taipei City, TWN, 103
Taipei Star Bank is engaged in banking activities. It provides services of business loans, mortgages, checking deposits, demand deposits, and foreign currency trading business.
60GF Score

Get the complete analysis for ROCO:5863

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

NT$11.20
Price
NT$14.26
GF Value