China Reinsurance (Group) (STU:C53) Beneish M-Score: -2.13 (As of Jun. 25, 2026)


STU:C53 China Reinsurance (Group) Corp STU:C53
44 GF Score
Price €0.12
GF Value €0.08
Valuation Significantly Overvalued
! 2 Warning Signs
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What is China Reinsurance (Group) Beneish M-Score?

China Reinsurance (Group) STU:C53 -9.08% 44 Beneish M-Score is -2.13 as of Jun. 25, 2026. GuruFocus rates STU:C53 with a GF Score™ of 44/100 and a GF Value™ of €0.08 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 399 Insurance companies, China Reinsurance (Group) ranks worse than 79.2% 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 -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:C53' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Med: -2.43   Max: -1.37
Current: -2.13

During the past 13 years, the highest Beneish M-Score of China Reinsurance (Group) was -1.37. The lowest was -3.43. And the median was -2.43.

STU:C53
44GF Score
China Reinsurance (Group) Corp STU:C53
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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China Reinsurance (Group) 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 Reinsurance (Group) 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 * 1.4511+0.528 * 1+0.404 * 1.0034+0.892 * 0.9265+0.115 * 0.7141
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.045+4.679 * -0.016014-0.327 * 0.9517
=-2.23

* 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 €235 Mil.
Revenue was €13,716 Mil.
Gross Profit was €13,716 Mil.
Total Current Assets was €0 Mil.
Total Assets was €63,992 Mil.
Property, Plant and Equipment(Net PPE) was €335 Mil.
Depreciation, Depletion and Amortization(DDA) was €150 Mil.
Selling, General, & Admin. Expense(SGA) was €835 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,674 Mil.
Net Income was €1,185 Mil.
Gross Profit was €-43 Mil.
Cash Flow from Operations was €2,252 Mil.
 Total Receivables was €175 Mil.
Revenue was €14,803 Mil.
Gross Profit was €14,803 Mil.
Total Current Assets was €0 Mil.
Total Assets was €66,679 Mil.
Property, Plant and Equipment(Net PPE) was €571 Mil.
Depreciation, Depletion and Amortization(DDA) was €162 Mil.
Selling, General, & Admin. Expense(SGA) was €862 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,832 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)
=(234.72 / 13715.658) / (174.577 / 14802.965)
=0.017113 / 0.011793
=1.4511

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)
=(14802.965 / 14802.965) / (13715.658 / 13715.658)
=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 + 335.032) / 63992.215) / (1 - (0 + 571.054) / 66679.232)
=0.994764 / 0.991436
=1.0034

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
=13715.658 / 14802.965
=0.9265

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))
=(162.248 / (162.248 + 571.054)) / (150.404 / (150.404 + 335.032))
=0.221257 / 0.309833
=0.7141

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)
=(835.026 / 13715.658) / (862.409 / 14802.965)
=0.060881 / 0.058259
=1.045

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)
=((1673.653 + 0) / 63992.215) / ((1832.343 + 0) / 66679.232)
=0.026154 / 0.02748
=0.9517

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
=(1184.768 - -42.59 - 2252.159) / 63992.215
=-0.016014

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 Reinsurance (Group) has a M-score of -2.23 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 -2.13 mean?
China Reinsurance (Group) (STU:C53) has a Beneish M-Score of -2.13 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Reinsurance (Group) and its competitors. According to the industry distribution chart, China Reinsurance (Group) ranks #316 out of 399 companies in the Insurance industry, placing it in the top 79.2%.
Is China Reinsurance (Group)'s Beneish M-Score too high?
China Reinsurance (Group)'s current Beneish M-Score is -2.13. Based on the distribution chart, China Reinsurance (Group) ranks #316 out of 399 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, China Reinsurance (Group) has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Reinsurance (Group)'s Beneish M-Score compare to RGA and EG?
According to the Insurance industry distribution chart, China Reinsurance (Group) ranks #316 out of 399 companies for Beneish M-Score. This places China Reinsurance (Group) 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 China Reinsurance (Group) and its competitors. China Reinsurance (Group)'s current Beneish M-Score is -2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Reinsurance (Group) stock overvalued right now?
Based on GuruFocus' analysis, China Reinsurance (Group) (STU:C53) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.08, compared to a current price of €0.12 — trading 50.3% above its estimated fair value. The current Beneish M-Score is -2.13. China Reinsurance (Group)'s overall GF Score™ is 44/100 with 2 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 Reinsurance (Group) (STU:C53), the current Beneish M-Score is -2.13 as of Jun. 25, 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 Reinsurance (Group) (STU:C53) Overvalued in 2026?

Based on GuruFocus' analysis, China Reinsurance (Group) stock appears to be overvalued. The current stock price of €0.12 is trading 50.3% above its estimated GF Value™ of €0.08. GuruFocus considers China Reinsurance (Group) to be Significantly Overvalued.

Key valuation signals for STU:C53:

  • Beneish M-Score: -2.13
  • GF Value™: €0.08 vs. price of €0.12 (50.3% above fair value)
  • GF Score™: 44/100 with 2 warning signs

No single metric tells the full story. See the STU:C53 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Reinsurance (Group) Business Description

Other Exchanges 01508:Hong Kong
Address No. 11 Jinrong Avenue, Xicheng District, Beijing, CHN, 100033
China Reinsurance (Group) Corp is mainly engaged in property and casualty reinsurance, life and health reinsurance, primary property and casualty insurance, asset management and other businesses. Its operating and reportable segments are Property and casualty reinsurance segment offers a wide variety of reinsurance products; Life and health reinsurance segment offers a wide range of reinsurance products; Primary property and casualty insurance segment offers a wide variety of insurance products and other businesses including motor, property and liability insurance; Asset management segment offers asset management services; and Other segments of which majority of revenue comes from Primary property and casualty insurance.
44GF Score

Get the complete analysis for STU:C53

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

€0.12
Price
€0.08
GF Value