China Galaxy Securities Co (STU:CGL) Beneish M-Score: -2.01 (As of Jun. 26, 2026)


STU:CGL China Galaxy Securities Co Ltd STU:CGL
78 GF Score
Price €0.83
GF Value €0.92
! 3 Warning Signs
View Full Analysis

What is China Galaxy Securities Co Beneish M-Score?

China Galaxy Securities Co STU:CGL 78 Beneish M-Score is -2.01 as of Jun. 26, 2026. GuruFocus rates STU:CGL with a GF Score™ of 78/100 and a GF Value™ of €0.92. The stock has 3 warning signs investors should review. Among 86 Diversified Financial Services companies, China Galaxy Securities Co ranks worse than 74.42% 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 -2.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:CGL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Med: -2.23   Max: -2.01
Current: -2.01

During the past 13 years, the highest Beneish M-Score of China Galaxy Securities Co was -2.01. The lowest was -3.33. And the median was -2.23.

STU:CGL
78GF Score
China Galaxy Securities Co Ltd STU:CGL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Galaxy Securities 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 China Galaxy Securities 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+0.528 * 1+0.404 * 1.0004+0.892 * 1.1489+0.115 * 0.9699
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8211+4.679 * 0.044446-0.327 * 1.062
=-2.13

* 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 €0 Mil.
Revenue was €3,425 Mil.
Gross Profit was €3,425 Mil.
Total Current Assets was €0 Mil.
Total Assets was €103,761 Mil.
Property, Plant and Equipment(Net PPE) was €269 Mil.
Depreciation, Depletion and Amortization(DDA) was €147 Mil.
Selling, General, & Admin. Expense(SGA) was €154 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €23,926 Mil.
Net Income was €1,518 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €-3,094 Mil.
 Total Receivables was €0 Mil.
Revenue was €2,981 Mil.
Gross Profit was €2,981 Mil.
Total Current Assets was €0 Mil.
Total Assets was €96,733 Mil.
Property, Plant and Equipment(Net PPE) was €293 Mil.
Depreciation, Depletion and Amortization(DDA) was €152 Mil.
Selling, General, & Admin. Expense(SGA) was €163 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €21,005 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 / 3425) / (0 / 2981.16)
=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)
=(2981.16 / 2981.16) / (3425 / 3425)
=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 + 268.708) / 103760.53) / (1 - (0 + 292.619) / 96733.076)
=0.99741 / 0.996975
=1.0004

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
=3425 / 2981.16
=1.1489

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))
=(152.418 / (152.418 + 292.619)) / (146.684 / (146.684 + 268.708))
=0.342484 / 0.353122
=0.9699

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)
=(153.896 / 3425) / (163.128 / 2981.16)
=0.044933 / 0.05472
=0.8211

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)
=((23926.318 + 0) / 103760.53) / ((21004.539 + 0) / 96733.076)
=0.230592 / 0.217139
=1.062

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
=(1518.037 - 0 - -3093.674) / 103760.53
=0.044446

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 Galaxy Securities Co has a M-score of -2.13 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 -2.01 mean?
China Galaxy Securities Co (STU:CGL) has a Beneish M-Score of -2.01 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Galaxy Securities Co and its competitors. According to the industry distribution chart, China Galaxy Securities Co ranks #64 out of 86 companies in the Diversified Financial Services industry, placing it in the top 74.4%.
Is China Galaxy Securities Co's Beneish M-Score too high?
China Galaxy Securities Co's current Beneish M-Score is -2.01. Based on the distribution chart, China Galaxy Securities Co ranks #64 out of 86 companies in the Diversified Financial Services industry, which is below the industry midpoint. Overall, China Galaxy Securities Co has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does China Galaxy Securities Co's Beneish M-Score compare to FRHC and VOYA?
According to the Diversified Financial Services industry distribution chart, China Galaxy Securities Co ranks #64 out of 86 companies for Beneish M-Score. This places China Galaxy Securities 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 a Diversified Financial Services company?
A good Beneish M-Score depends on the Diversified Financial Services 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 Galaxy Securities Co and its competitors. China Galaxy Securities Co's current Beneish M-Score is -2.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Galaxy Securities Co stock overvalued right now?
China Galaxy Securities Co (STU:CGL) has a current Beneish M-Score of -2.01. The stock's GF Value™ is €0.92, compared to a current price of €0.83 — trading 10.3% below its estimated fair value. The current Beneish M-Score is -2.01. China Galaxy Securities Co'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 Galaxy Securities Co (STU:CGL), the current Beneish M-Score is -2.01 as of Jun. 26, 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 Galaxy Securities Co (STU:CGL) Overvalued in 2026?

Based on GuruFocus' analysis, China Galaxy Securities Co stock appears to be undervalued. The current stock price of €0.83 is trading 10.3% below its estimated GF Value™ of €0.92.

Key valuation signals for STU:CGL:

  • Beneish M-Score: -2.01
  • GF Value™: €0.92 vs. price of €0.83 (10.3% below fair value)
  • GF Score™: 78/100 with 3 warning signs

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

China Galaxy Securities Co Business Description

Address No. 8 Xiying Street, Qinghai Finance Building, Building No. 1, Fengtai District, Beijing, CHN, 100073
China Galaxy Securities Co Ltd is an integrated financial services provider in the Chinese securities industry. It is principally engaged in securities and futures brokerage, institutional sales and investment research, proprietary trading and other securities trading services, margin financing and securities lending, asset management and wealth management, and equity investment management. The company's segments include the wealth management business, investment banking business, institutional business, international business, investment trading business, and other parent-subsidiary integration business.
78GF Score

Get the complete analysis for STU:CGL

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

€0.83
Price
€0.92
GF Value