Fubon Financial Holdings Co (TPE:2881) Beneish M-Score: -2.40 (As of Jun. 26, 2026)


TPE:2881 Fubon Financial Holdings Co Ltd TPE:2881
71 GF Score
Price NT$136.00
GF Value NT$139.93
Valuation Fairly Valued
! 8 Warning Signs
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What is Fubon Financial Holdings Co Beneish M-Score?

Fubon Financial Holdings Co TPE:2881 +1.12% 71 Beneish M-Score is -2.40 as of Jun. 26, 2026. GuruFocus rates TPE:2881 with a GF Score™ of 71/100 and a GF Value™ of NT$139.93 (Fairly Valued). The stock has 8 warning signs investors should review. Among 397 Insurance companies, Fubon Financial Holdings Co ranks worse than 62.22% 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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2881' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14   Med: -2.46   Max: -1.5
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Fubon Financial Holdings Co was -1.50. The lowest was -3.14. And the median was -2.46.

TPE:2881
71GF Score
Fubon Financial Holdings Co Ltd TPE:2881
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Fubon Financial Holdings 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 Fubon Financial Holdings 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+0.892 * 1.0928+0.115 * 1.0091
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9167+4.679 * 0.008274-0.327 * 1.1739
=-2.40

* 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 142600.871 + 124288.006 + 3760.808 + 108654.85 = NT$379,305 Mil.
Gross Profit was 142600.871 + 124288.006 + 3760.808 + 108654.85 = NT$379,305 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$12,875,478 Mil.
Property, Plant and Equipment(Net PPE) was NT$91,468 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$8,470 Mil.
Selling, General, & Admin. Expense(SGA) was NT$36,852 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$600,645 Mil.
Net Income was 30038.805 + 39521.655 + 10325.725 + 41057.794 = NT$120,944 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 5359.193 + -27739.545 + 25408.509 + 11379.389 = NT$14,408 Mil.
 Total Receivables was NT$0 Mil.
Revenue was 102155.925 + 71626.292 + 84109.959 + 89194.873 = NT$347,087 Mil.
Gross Profit was 102155.925 + 71626.292 + 84109.959 + 89194.873 = NT$347,087 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$12,067,311 Mil.
Property, Plant and Equipment(Net PPE) was NT$85,801 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$8,024 Mil.
Selling, General, & Admin. Expense(SGA) was NT$36,787 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$479,543 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 / 379304.535) / (0 / 347087.049)
=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)
=(347087.049 / 347087.049) / (379304.535 / 379304.535)
=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 + 91467.825) / 12875478.154) / (1 - (0 + 85800.722) / 12067311.207)
=0.992896 / 0.99289
=1

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
=379304.535 / 347087.049
=1.0928

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))
=(8024.441 / (8024.441 + 85800.722)) / (8470.357 / (8470.357 + 91467.825))
=0.085525 / 0.084756
=1.0091

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)
=(36852.405 / 379304.535) / (36787.465 / 347087.049)
=0.097158 / 0.105989
=0.9167

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)
=((600644.627 + 0) / 12875478.154) / ((479542.789 + 0) / 12067311.207)
=0.04665 / 0.039739
=1.1739

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
=(120943.979 - 0 - 14407.546) / 12875478.154
=0.008274

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.

Fubon Financial Holdings Co has a M-score of -2.40 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 -2.40 mean?
Fubon Financial Holdings Co (TPE:2881) has a Beneish M-Score of -2.40 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Fubon Financial Holdings Co and its competitors. According to the industry distribution chart, Fubon Financial Holdings Co ranks #247 out of 397 companies in the Insurance industry, placing it in the top 62.2%.
Is Fubon Financial Holdings Co's Beneish M-Score too high?
Fubon Financial Holdings Co's current Beneish M-Score is -2.40. Based on the distribution chart, Fubon Financial Holdings Co ranks #247 out of 397 companies in the Insurance industry, which is below the industry midpoint. Overall, Fubon Financial Holdings Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fubon Financial Holdings Co's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, Fubon Financial Holdings Co ranks #247 out of 397 companies for Beneish M-Score. This places Fubon Financial Holdings 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 Fubon Financial Holdings Co and its competitors. Fubon Financial Holdings Co's current Beneish M-Score is -2.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fubon Financial Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Fubon Financial Holdings Co (TPE:2881) is currently considered Fairly Valued. The stock's GF Value™ is NT$139.93, compared to a current price of NT$136.00 — trading 2.8% below its estimated fair value. The current Beneish M-Score is -2.40. Fubon Financial Holdings Co's overall GF Score™ is 71/100 with 8 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 Fubon Financial Holdings Co (TPE:2881), the current Beneish M-Score is -2.40 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 Fubon Financial Holdings Co (TPE:2881) Overvalued in 2026?

Based on GuruFocus' analysis, Fubon Financial Holdings Co stock appears to be undervalued. The current stock price of NT$136.00 is trading 2.8% below its estimated GF Value™ of NT$139.93. GuruFocus considers Fubon Financial Holdings Co to be Fairly Valued.

Key valuation signals for TPE:2881:

  • Beneish M-Score: -2.40
  • GF Value™: NT$139.93 vs. price of NT$136.00 (2.8% below fair value)
  • GF Score™: 71/100 with 8 warning signs

No single metric tells the full story. See the TPE:2881 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Fubon Financial Holdings Co Business Description

Address No. 179, Liaoning Street, 15-16th Floor, Zhongshan District, Taipei, TWN, 104
Fubon Financial Holdings Co Ltd is a full-service financial holding company. Along with its subsidiaries, the company operates in the following reportable segments: Bank business, Insurance business, Life insurance business, Securities business, and Others. It generates maximum revenue from the Life Insurance business segment, which provides a variety of life and property insurance services. In addition to its reportable businesses, the group is also engaged in financial holding, venture capital, and asset management businesses. Geographically, it generates maximum revenue from Taiwan, followed by other Asian regions, and other markets.
71GF Score

Get the complete analysis for TPE:2881

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

NT$136.00
Price
NT$139.93
GF Value