Chang Hwa Commercial Bank (TPE:2801) Beneish M-Score: -2.33 (As of Jun. 26, 2026)


TPE:2801 Chang Hwa Commercial Bank Ltd TPE:2801
72 GF Score
Price NT$23.50
GF Value NT$20.38
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Chang Hwa Commercial Bank Beneish M-Score?

Chang Hwa Commercial Bank TPE:2801 +2.62% 72 Beneish M-Score is -2.33 as of Jun. 26, 2026. GuruFocus rates TPE:2801 with a GF Score™ of 72/100 and a GF Value™ of NT$20.38 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,397 Banks companies, Chang Hwa Commercial Bank ranks worse than 62.92% 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Chang Hwa Commercial Bank's Beneish M-Score or its related term are showing as below:

TPE:2801' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.43   Max: -2.21
Current: -2.33

During the past 13 years, the highest Beneish M-Score of Chang Hwa Commercial Bank was -2.21. The lowest was -2.78. And the median was -2.43.

TPE:2801
72GF Score
Chang Hwa Commercial Bank Ltd TPE:2801
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chang Hwa Commercial 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 Chang Hwa Commercial 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 * 1.0003+0.892 * 1.0785+0.115 * 0.9505
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9713+4.679 * 0.01502-0.327 * 0.9622
=-2.33

* 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 10854.436 + 11900.824 + 11787.16 + 10701.29 = NT$45,244 Mil.
Gross Profit was 10854.436 + 11900.824 + 11787.16 + 10701.29 = NT$45,244 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$3,377,011 Mil.
Property, Plant and Equipment(Net PPE) was NT$23,904 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,748 Mil.
Selling, General, & Admin. Expense(SGA) was NT$5,571 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$44,929 Mil.
Net Income was 3624.415 + 5021.141 + 4994.542 + 4134.766 = NT$17,775 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was -50207.56 + 10748.607 + 29908.649 + -23397.769 = NT$-32,948 Mil.
 Total Receivables was NT$0 Mil.
Revenue was 9760.061 + 11376.302 + 10445.859 + 10368.609 = NT$41,951 Mil.
Gross Profit was 9760.061 + 11376.302 + 10445.859 + 10368.609 = NT$41,951 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$3,172,721 Mil.
Property, Plant and Equipment(Net PPE) was NT$23,380 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$1,619 Mil.
Selling, General, & Admin. Expense(SGA) was NT$5,318 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$43,868 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 / 45243.71) / (0 / 41950.831)
=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)
=(41950.831 / 41950.831) / (45243.71 / 45243.71)
=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 + 23904.002) / 3377011.238) / (1 - (0 + 23379.73) / 3172721.131)
=0.992922 / 0.992631
=1.0003

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
=45243.71 / 41950.831
=1.0785

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))
=(1618.842 / (1618.842 + 23379.73)) / (1747.705 / (1747.705 + 23904.002))
=0.064757 / 0.068132
=0.9505

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)
=(5571.041 / 45243.71) / (5318.28 / 41950.831)
=0.123134 / 0.126774
=0.9713

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)
=((44928.588 + 0) / 3377011.238) / ((43867.793 + 0) / 3172721.131)
=0.013304 / 0.013827
=0.9622

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
=(17774.864 - 0 - -32948.073) / 3377011.238
=0.01502

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.

Chang Hwa Commercial Bank has a M-score of -2.33 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 -2.33 mean?
Chang Hwa Commercial Bank (TPE:2801) has a Beneish M-Score of -2.33 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Chang Hwa Commercial Bank and its competitors. According to the industry distribution chart, Chang Hwa Commercial Bank ranks #879 out of 1397 companies in the Banks industry, placing it in the top 62.9%.
Is Chang Hwa Commercial Bank's Beneish M-Score too high?
Chang Hwa Commercial Bank's current Beneish M-Score is -2.33. Based on the distribution chart, Chang Hwa Commercial Bank ranks #879 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Chang Hwa Commercial Bank has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chang Hwa Commercial Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Chang Hwa Commercial Bank ranks #879 out of 1397 companies for Beneish M-Score. This places Chang Hwa Commercial Bank 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 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 Chang Hwa Commercial Bank and its competitors. Chang Hwa Commercial Bank's current Beneish M-Score is -2.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chang Hwa Commercial Bank stock overvalued right now?
Based on GuruFocus' analysis, Chang Hwa Commercial Bank (TPE:2801) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$20.38, compared to a current price of NT$23.50 — trading 15.3% above its estimated fair value. The current Beneish M-Score is -2.33. Chang Hwa Commercial Bank's overall GF Score™ is 72/100 with 5 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 Chang Hwa Commercial Bank (TPE:2801), the current Beneish M-Score is -2.33 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 Chang Hwa Commercial Bank (TPE:2801) Overvalued in 2026?

Based on GuruFocus' analysis, Chang Hwa Commercial Bank stock appears to be overvalued. The current stock price of NT$23.50 is trading 15.3% above its estimated GF Value™ of NT$20.38. GuruFocus considers Chang Hwa Commercial Bank to be Modestly Overvalued.

Key valuation signals for TPE:2801:

  • Beneish M-Score: -2.33
  • GF Value™: NT$20.38 vs. price of NT$23.50 (15.3% above fair value)
  • GF Score™: 72/100 with 5 warning signs

No single metric tells the full story. See the TPE:2801 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Chang Hwa Commercial Bank Business Description

Address No. 38, Section 2, Ziyou Road, Taichung, TWN
Chang Hwa Commercial Bank Ltd operates as a bank. It operates in segments namely Loans, Deposits, Financial Instruments and Investments, Wealth Management, Overseas branches and Subsidiaries, and others. It generates a majority of its revenue from the Loan segment. It offers services such as wealth management, personal cards, housing loans, credit loans, personal Internet banking, commercial Internet banking, and others.
72GF Score

Get the complete analysis for TPE:2801

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

NT$23.50
Price
NT$20.38
GF Value