China Bills Finance (TPE:2820) Beneish M-Score: -5.15 (As of Jul. 14, 2026)

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TPE:2820 China Bills Finance Corp TPE:2820
62 GF Score
Price NT$16.65
GF Value NT$24.43
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is China Bills Finance Beneish M-Score?

China Bills Finance TPE:2820 62 Beneish M-Score is -5.15 as of Jul. 14, 2026. GuruFocus rates TPE:2820 with a GF Score™ of 62/100 and a GF Value™ of NT$24.43 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 704 Capital Markets companies, China Bills Finance ranks better than 95.74% 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 -5.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2820' s Beneish M-Score Range Over the Past 10 Years
Min: -282.92   Med: -2.46   Max: -1.93
Current: -5.15

During the past 13 years, the highest Beneish M-Score of China Bills Finance was -1.93. The lowest was -282.92. And the median was -2.46.

TPE:2820
62GF Score
China Bills Finance Corp TPE:2820
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Bills Finance 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 Bills Finance 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 * 0.9999+0.892 * 1.3255+0.115 * 1.1332
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.855+4.679 * 0.03806-0.327 * 10.7273
=-5.15

* 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 724.382 + 828.795 + 835.457 + 586.516 = NT$2,975 Mil.
Gross Profit was 724.382 + 828.795 + 835.457 + 586.516 = NT$2,975 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$265,122 Mil.
Property, Plant and Equipment(Net PPE) was NT$186 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$26 Mil.
Selling, General, & Admin. Expense(SGA) was NT$170 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$31 Mil.
Net Income was 384.317 + 444.331 + 570.889 + 396.542 = NT$1,796 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 5526.461 + -12075.654 + 20.08 + -1765.398 = NT$-8,295 Mil.
 Total Receivables was NT$0 Mil.
Revenue was 492.133 + 645.455 + 426.967 + 680.008 = NT$2,245 Mil.
Gross Profit was 492.133 + 645.455 + 426.967 + 680.008 = NT$2,245 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$252,727 Mil.
Property, Plant and Equipment(Net PPE) was NT$158 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$26 Mil.
Selling, General, & Admin. Expense(SGA) was NT$150 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$3 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 / 2975.15) / (0 / 2244.563)
=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)
=(2244.563 / 2244.563) / (2975.15 / 2975.15)
=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 + 186.478) / 265121.855) / (1 - (0 + 158.265) / 252726.909)
=0.999297 / 0.999374
=0.9999

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
=2975.15 / 2244.563
=1.3255

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))
=(25.722 / (25.722 + 158.265)) / (26.244 / (26.244 + 186.478))
=0.139803 / 0.123372
=1.1332

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)
=(170.435 / 2975.15) / (150.388 / 2244.563)
=0.057286 / 0.067001
=0.855

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)
=((31.231 + 0) / 265121.855) / ((2.886 + 0) / 252726.909)
=0.000118 / 1.1E-5
=10.7273

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
=(1796.079 - 0 - -8294.511) / 265121.855
=0.03806

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 Bills Finance has a M-score of -5.15 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 -5.15 mean?
China Bills Finance (TPE:2820) has a Beneish M-Score of -5.15 as of Jul. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Bills Finance and its competitors. According to the industry distribution chart, China Bills Finance ranks #30 out of 704 companies in the Capital Markets industry, placing it in the top 4.3%.
Is China Bills Finance's Beneish M-Score too high?
China Bills Finance's current Beneish M-Score is -5.15. Based on the distribution chart, China Bills Finance ranks #30 out of 704 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, China Bills Finance has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Bills Finance's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, China Bills Finance ranks #30 out of 704 companies for Beneish M-Score. This places China Bills Finance in the top 4% 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 China Bills Finance and its competitors. China Bills Finance's current Beneish M-Score is -5.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Bills Finance stock overvalued right now?
Based on GuruFocus' analysis, China Bills Finance (TPE:2820) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$24.43, compared to a current price of NT$16.65 — trading 31.8% below its estimated fair value. The current Beneish M-Score is -5.15. China Bills Finance'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 China Bills Finance (TPE:2820), the current Beneish M-Score is -5.15 as of Jul. 14, 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 Bills Finance (TPE:2820) Overvalued in 2026?

Based on GuruFocus' analysis, China Bills Finance stock appears to be undervalued. The current stock price of NT$16.65 is trading 31.8% below its estimated GF Value™ of NT$24.43. GuruFocus considers China Bills Finance to be Significantly Undervalued.

Key valuation signals for TPE:2820:

  • Beneish M-Score: -5.15
  • GF Value™: NT$24.43 vs. price of NT$16.65 (31.8% below fair value)
  • GF Score™: 62/100 with 2 warning signs

No single metric tells the full story. See the TPE:2820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Bills Finance Business Description

Address Tiding Boulevard, 4th Floor, No. 99, Sec. 2, Neihu District, Taipei, TWN, 11493
China Bills Finance Corp focuses on corporate financing and fixed-income commodities. The company's business activities consist of certifying and underwriting of short-term bills and bank debentures; brokering or undertaking proprietary trading of short-term bills, bank debentures, government and corporate bonds, and foreign bonds; guaranteeing short-term bills; providing financial consulting services to enterprises; processing interbank call loans; equity investments; fixed-income security trading; (h) foreign-currency bills investment; and doing other businesses as authorized by relevant authorities. Its business is concentrated in Taiwan.
62GF Score

Get the complete analysis for TPE:2820

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

NT$16.65
Price
NT$24.43
GF Value