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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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for China Railway Construction's Beneish M-Score or its related term are showing as below:
SHSE:601186'
s Beneish M-Score Range Over the Past 10 Years
Min: -5.26 Med: -2.24 Max: 0.66
Current: -2.16
During the past 13 years, the highest Beneish M-Score of China Railway Construction was 0.66. The lowest was -5.26. And the median was -2.24.
China Railway Construction Beneish M-Score Related Terms
China Railway Construction Beneish M-Score Historical Data
* 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.
SHSE:601186 vs PWR, FIX, EME: Beneish M-Score Comparison
For the Engineering & Construction subindustry, China Railway Construction'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.
China Railway Construction Beneish M-Score vs Construction Industry
For the Construction industry and Industrials sector, China Railway Construction's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where China Railway Construction's Beneish M-Score falls into.
China Railway Construction 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 Railway Construction 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 * 1.239
+
0.528 * 1.0389
+
0.404 * 1.0449
+
0.892 * 0.9577
+
0.115 * 1
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.846
+
4.679 * 0.017866
-
0.327 * 1.0274
=
-2.16
* 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.
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.
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))
=
(0 / (0 + 86970.002))
/
(0 / (0 + 92052.042))
=
0
/
0
=
1
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
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
=
(17604.222 - 0
-
-20672.509)
/
2142429.36
=
0.017866
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 Railway Construction has a M-score of -2.16 suggests that the company is unlikely to be a manipulator.
China Railway Construction (SHSE:601186) has a Beneish M-Score of -2.16 as of Jul. 23, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Railway Construction and its competitors. According to the industry distribution chart, China Railway Construction ranks #1197 out of 1699 companies in the Construction industry, placing it in the top 70.5%.
Is China Railway Construction's Beneish M-Score too high?
China Railway Construction's current Beneish M-Score is -2.16. Based on the distribution chart, China Railway Construction ranks #1197 out of 1699 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Construction has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction's Beneish M-Score compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Construction ranks #1197 out of 1699 companies for Beneish M-Score. This places China Railway Construction 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 Construction company?
A good Beneish M-Score depends on the Construction 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 Railway Construction and its competitors. China Railway Construction's current Beneish M-Score is -2.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction (SHSE:601186) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥7.43, compared to a current price of ¥6.58 — trading 11.4% below its estimated fair value. The current Beneish M-Score is -2.16. China Railway Construction's overall GF Score™ is 68/100 with 6 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 Railway Construction (SHSE:601186), the current Beneish M-Score is -2.16 as of Jul. 23, 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 Railway Construction (SHSE:601186) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction stock appears to be undervalued.
The current stock price of ¥6.58 is trading 11.4% below its estimated GF Value™ of ¥7.43.
GuruFocus considers China Railway Construction to be Modestly Undervalued.
Key valuation signals for SHSE:601186:
Beneish M-Score: -2.16
GF Value™: ¥7.43 vs. price of ¥6.58 (11.4% below fair value)
No single metric tells the full story. See the SHSE:601186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Corp Ltd operates as an infrastructure construction firm. It largely derives contracting revenue. It builds railways, highways and municipal works, such as subways and light rail systems. The company also engages in survey and design, manufacturing, logistics, and property development. It operates the following business segments: Engineering contracting business, Planning, design and consultancy, Manufacturing operation, Real estate development operation, Materials and logistics and other businesses. The firm's revenue gets dominated by the Engineering contracting business segment that engages in the construction of infrastructure such as railways, highways, metropolitan railways, and real estate projects.
68GF Score
Get the complete analysis for SHSE:601186
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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