Shinkong Insurance Co (TPE:2850) Beneish M-Score: -1.73 (As of Jul. 06, 2026)


TPE:2850 Shinkong Insurance Co Ltd TPE:2850
70 GF Score
Price NT$147.50
GF Value NT$101.62
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Shinkong Insurance Co Beneish M-Score?

Shinkong Insurance Co TPE:2850 +2.79% 70 Beneish M-Score is -1.73 as of Jul. 06, 2026. GuruFocus rates TPE:2850 with a GF Score™ of 70/100 and a GF Value™ of NT$101.62 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 400 Insurance companies, Shinkong Insurance Co ranks worse than 89.25% 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.

Warning Sign:

Beneish M-Score -1.73 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TPE:2850' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87   Med: -2.39   Max: -1.73
Current: -1.73

During the past 13 years, the highest Beneish M-Score of Shinkong Insurance Co was -1.73. The lowest was -2.87. And the median was -2.39.

TPE:2850
70GF Score
Shinkong Insurance Co Ltd TPE:2850
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Shinkong Insurance 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 Shinkong Insurance 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 * 1.3916+0.528 * 1+0.404 * 1.0046+0.892 * 1.034+0.115 * 0.7965
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0381+4.679 * 0.060529-0.327 * 0.6804
=-1.73

* 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$3,238 Mil.
Revenue was 5391.837 + 5714.014 + 5279.768 + 5176.334 = NT$21,562 Mil.
Gross Profit was 5391.837 + 5714.014 + 5279.768 + 5176.334 = NT$21,562 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$62,427 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,089 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$114 Mil.
Selling, General, & Admin. Expense(SGA) was NT$4,148 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$26 Mil.
Net Income was 1204.229 + 964.711 + 997.754 + 711.974 = NT$3,879 Mil.
Non Operating Income was 168.533 + 223.569 + -514.357 + 96.689 = NT$-26 Mil.
Cash Flow from Operations was -630.637 + 2825.073 + -1260.478 + -808.386 = NT$126 Mil.
 Total Receivables was NT$2,250 Mil.
Revenue was 5211.884 + 5323.089 + 5063.366 + 5255.404 = NT$20,854 Mil.
Gross Profit was 5211.884 + 5323.089 + 5063.366 + 5255.404 = NT$20,854 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$54,608 Mil.
Property, Plant and Equipment(Net PPE) was NT$1,199 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$98 Mil.
Selling, General, & Admin. Expense(SGA) was NT$3,864 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$33 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)
=(3237.752 / 21561.953) / (2250.214 / 20853.743)
=0.15016 / 0.107905
=1.3916

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)
=(20853.743 / 20853.743) / (21561.953 / 21561.953)
=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 + 1089.397) / 62427.35) / (1 - (0 + 1199.428) / 54607.964)
=0.982549 / 0.978036
=1.0046

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
=21561.953 / 20853.743
=1.034

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))
=(97.658 / (97.658 + 1199.428)) / (113.729 / (113.729 + 1089.397))
=0.07529 / 0.094528
=0.7965

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)
=(4147.528 / 21561.953) / (3864.052 / 20853.743)
=0.192354 / 0.185293
=1.0381

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)
=((25.763 + 0) / 62427.35) / ((33.155 + 0) / 54607.964)
=0.000413 / 0.000607
=0.6804

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
=(3878.668 - -25.566 - 125.572) / 62427.35
=0.060529

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.

Shinkong Insurance Co has a M-score of -1.73 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.73 mean?
Shinkong Insurance Co (TPE:2850) has a Beneish M-Score of -1.73 as of Jul. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shinkong Insurance Co and its competitors. According to the industry distribution chart, Shinkong Insurance Co ranks #357 out of 400 companies in the Insurance industry, placing it in the top 89.2%.
Is Shinkong Insurance Co's Beneish M-Score too high?
Shinkong Insurance Co's current Beneish M-Score is -1.73. Based on the distribution chart, Shinkong Insurance Co ranks #357 out of 400 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Shinkong Insurance Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinkong Insurance Co's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Shinkong Insurance Co ranks #357 out of 400 companies for Beneish M-Score. This places Shinkong Insurance 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 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 Shinkong Insurance Co and its competitors. Shinkong Insurance Co's current Beneish M-Score is -1.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinkong Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Shinkong Insurance Co (TPE:2850) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$101.62, compared to a current price of NT$147.50 — trading 45.1% above its estimated fair value. The current Beneish M-Score is -1.73. Shinkong Insurance Co's overall GF Score™ is 70/100 with 7 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 Shinkong Insurance Co (TPE:2850), the current Beneish M-Score is -1.73 as of Jul. 06, 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 Shinkong Insurance Co (TPE:2850) Overvalued in 2026?

Based on GuruFocus' analysis, Shinkong Insurance Co stock appears to be overvalued. The current stock price of NT$147.50 is trading 45.1% above its estimated GF Value™ of NT$101.62. GuruFocus considers Shinkong Insurance Co to be Significantly Overvalued.

Key valuation signals for TPE:2850:

  • Beneish M-Score: -1.73
  • GF Value™: NT$101.62 vs. price of NT$147.50 (45.1% above fair value)
  • GF Score™: 70/100 with 7 warning signs

No single metric tells the full story. See the TPE:2850 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shinkong Insurance Co Business Description

Address Jianguo North Road, 11th Floor, No. 15, Section 2, Taipei, TWN, 104
Shinkong Insurance Co Ltd is one of the property and casualty insurance company. The product portfolio of the company comprises accident and health insurance, liability insurance, engineering insurance, marine insurance, fire insurance, motor insurance, amd others.
70GF Score

Get the complete analysis for TPE:2850

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

NT$147.50
Price
NT$101.62
GF Value