Huaxi Securities Co (SZSE:002926) Beneish M-Score: -2.71 (As of Aug. 20, 2026)

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SZSE:002926 Huaxi Securities Co Ltd SZSE:002926
62 GF Score
Price ¥8.26
GF Value ¥11.22
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Huaxi Securities Co Beneish M-Score?

Huaxi Securities Co SZSE:002926 +0.61% 62 Beneish M-Score is -2.71 as of Aug. 20, 2026. GuruFocus rates SZSE:002926 with a GF Score™ of 62/100 and a GF Value™ of ¥11.22 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 705 Capital Markets companies, Huaxi Securities Co ranks better than 76.31% 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SZSE:002926' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Med: -2.32   Max: -1.01
Current: -2.71

During the past 13 years, the highest Beneish M-Score of Huaxi Securities Co was -1.01. The lowest was -3.19. And the median was -2.32.

SZSE:002926
62GF Score
Huaxi Securities Co Ltd SZSE:002926
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Huaxi 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 Huaxi 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 * 1.0011+0.892 * 1.0837+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6111+4.679 * -0.073566-0.327 * 1.0768
=-2.71

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ¥0 Mil.
Revenue was 1169.837 + 1113.379 + 1411.192 + 984.426 = ¥4,679 Mil.
Gross Profit was 1169.837 + 1113.379 + 1411.192 + 984.426 = ¥4,679 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥113,168 Mil.
Property, Plant and Equipment(Net PPE) was ¥680 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥430 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥33,793 Mil.
Net Income was 393.609 + 410.979 + 547.186 + 211.154 = ¥1,563 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 2844.935 + -1088.817 + 3837.818 + 4294.293 = ¥9,888 Mil.
 Total Receivables was ¥0 Mil.
Revenue was 1090.121 + 1637.612 + 819.189 + 770.66 = ¥4,318 Mil.
Gross Profit was 1090.121 + 1637.612 + 819.189 + 770.66 = ¥4,318 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥100,393 Mil.
Property, Plant and Equipment(Net PPE) was ¥715 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥649 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥27,839 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 / 4678.834) / (0 / 4317.582)
=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)
=(4317.582 / 4317.582) / (4678.834 / 4678.834)
=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 + 679.525) / 113167.978) / (1 - (0 + 715.019) / 100392.897)
=0.993995 / 0.992878
=1.0011

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
=4678.834 / 4317.582
=1.0837

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))
=(0 / (0 + 715.019)) / (0 / (0 + 679.525))
=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

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)
=(429.911 / 4678.834) / (649.146 / 4317.582)
=0.091884 / 0.150349
=0.6111

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)
=((33792.734 + 0) / 113167.978) / ((27839.36 + 0) / 100392.897)
=0.298607 / 0.277304
=1.0768

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
=(1562.928 - 0 - 9888.229) / 113167.978
=-0.073566

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.

Huaxi Securities Co has a M-score of -2.71 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 -2.71 mean?
Huaxi Securities Co (SZSE:002926) has a Beneish M-Score of -2.71 as of Aug. 20, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Huaxi Securities Co and its competitors. According to the industry distribution chart, Huaxi Securities Co ranks #167 out of 705 companies in the Capital Markets industry, placing it in the top 23.7%.
Is Huaxi Securities Co's Beneish M-Score too high?
Huaxi Securities Co's current Beneish M-Score is -2.71. Based on the distribution chart, Huaxi Securities Co ranks #167 out of 705 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Huaxi Securities Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huaxi Securities Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Huaxi Securities Co ranks #167 out of 705 companies for Beneish M-Score. This places Huaxi Securities Co in the top 24% of its industry — outperforming the majority of peers. 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 Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Huaxi Securities Co and its competitors. Huaxi Securities Co's current Beneish M-Score is -2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huaxi Securities Co stock overvalued right now?
Based on GuruFocus' analysis, Huaxi Securities Co (SZSE:002926) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥11.22, compared to a current price of ¥8.26 — trading 26.4% below its estimated fair value. The current Beneish M-Score is -2.71. Huaxi Securities Co's overall GF Score™ is 62/100 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 Huaxi Securities Co (SZSE:002926), the current Beneish M-Score is -2.71 as of Aug. 20, 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 Huaxi Securities Co (SZSE:002926) Overvalued in 2026?

Based on GuruFocus' analysis, Huaxi Securities Co stock appears to be undervalued. The current stock price of ¥8.26 is trading 26.4% below its estimated GF Value™ of ¥11.22. GuruFocus considers Huaxi Securities Co to be Modestly Undervalued.

Key valuation signals for SZSE:002926:

  • Beneish M-Score: -2.71
  • GF Value™: ¥11.22 vs. price of ¥8.26 (26.4% below fair value)
  • GF Score™: 62/100 with 2 warning signs

No single metric tells the full story. See the SZSE:002926 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Huaxi Securities Co Business Description

Address No. 198 Tianfu Second Street, High-tech Zone, Sichuan Province, Chengdu, CHN, 610095
Huaxi Securities Co Ltd is engaged in Securities brokerage business, investment banking business, asset management business, securities proprietary business and futures business, etc.
62GF Score

Get the complete analysis for SZSE:002926

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

¥8.26
Price
¥11.22
GF Value