Mega Financial Holding Co (TPE:2886) Beneish M-Score: -2.64 (As of Jun. 26, 2026)


TPE:2886 Mega Financial Holding Co Ltd TPE:2886
79 GF Score
Price NT$46.65
GF Value NT$42.76
Valuation Fairly Valued
! 5 Warning Signs
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What is Mega Financial Holding Co Beneish M-Score?

Mega Financial Holding Co TPE:2886 +4.71% 79 Beneish M-Score is -2.64 as of Jun. 26, 2026. GuruFocus rates TPE:2886 with a GF Score™ of 79/100 and a GF Value™ of NT$42.76 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,396 Banks companies, Mega Financial Holding Co ranks better than 83.52% 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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TPE:2886' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.51   Max: -2.19
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Mega Financial Holding Co was -2.19. The lowest was -2.78. And the median was -2.51.

TPE:2886
79GF Score
Mega Financial Holding Co Ltd TPE:2886
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Mega Financial Holding 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 Mega Financial Holding 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 * 1.0003+0.892 * 0.9808+0.115 * 1.0036
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0381+4.679 * -0.02471-0.327 * 1.0774
=-2.64

* 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 19418.056 + 22299.891 + 20274.296 + 18432.214 = NT$80,424 Mil.
Gross Profit was 19418.056 + 22299.891 + 20274.296 + 18432.214 = NT$80,424 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$5,111,255 Mil.
Property, Plant and Equipment(Net PPE) was NT$25,177 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,609 Mil.
Selling, General, & Admin. Expense(SGA) was NT$10,621 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$108,799 Mil.
Net Income was 6752.731 + 10094.844 + 10179.763 + 8010.792 = NT$35,038 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = NT$0 Mil.
Cash Flow from Operations was 37875.616 + 128721.535 + 48690.058 + -53949.839 = NT$161,337 Mil.
 Total Receivables was NT$0 Mil.
Revenue was 17666.154 + 21398.582 + 20819.295 + 22118.144 = NT$82,002 Mil.
Gross Profit was 17666.154 + 21398.582 + 20819.295 + 22118.144 = NT$82,002 Mil.
Total Current Assets was NT$0 Mil.
Total Assets was NT$4,671,607 Mil.
Property, Plant and Equipment(Net PPE) was NT$24,413 Mil.
Depreciation, Depletion and Amortization(DDA) was NT$2,540 Mil.
Selling, General, & Admin. Expense(SGA) was NT$10,432 Mil.
Total Current Liabilities was NT$0 Mil.
Long-Term Debt & Capital Lease Obligation was NT$92,295 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 / 80424.457) / (0 / 82002.175)
=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)
=(82002.175 / 82002.175) / (80424.457 / 80424.457)
=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 + 25176.798) / 5111255.144) / (1 - (0 + 24413.119) / 4671606.749)
=0.995074 / 0.994774
=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
=80424.457 / 82002.175
=0.9808

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))
=(2540.226 / (2540.226 + 24413.119)) / (2609.304 / (2609.304 + 25176.798))
=0.094245 / 0.093907
=1.0036

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)
=(10621.026 / 80424.457) / (10432.066 / 82002.175)
=0.132062 / 0.127217
=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)
=((108798.705 + 0) / 5111255.144) / ((92295.206 + 0) / 4671606.749)
=0.021286 / 0.019757
=1.0774

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
=(35038.13 - 0 - 161337.37) / 5111255.144
=-0.02471

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.

Mega Financial Holding Co has a M-score of -2.64 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 -2.64 mean?
Mega Financial Holding Co (TPE:2886) has a Beneish M-Score of -2.64 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Mega Financial Holding Co and its competitors. According to the industry distribution chart, Mega Financial Holding Co ranks #230 out of 1396 companies in the Banks industry, placing it in the top 16.5%.
Is Mega Financial Holding Co's Beneish M-Score too high?
Mega Financial Holding Co's current Beneish M-Score is -2.64. Based on the distribution chart, Mega Financial Holding Co ranks #230 out of 1396 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Mega Financial Holding Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mega Financial Holding Co's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Mega Financial Holding Co ranks #230 out of 1396 companies for Beneish M-Score. This places Mega Financial Holding Co in the top 17% 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 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 Mega Financial Holding Co and its competitors. Mega Financial Holding Co's current Beneish M-Score is -2.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mega Financial Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Mega Financial Holding Co (TPE:2886) is currently considered Fairly Valued. The stock's GF Value™ is NT$42.76, compared to a current price of NT$46.65 — trading 9.1% above its estimated fair value. The current Beneish M-Score is -2.64. Mega Financial Holding Co's overall GF Score™ is 79/100 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 Mega Financial Holding Co (TPE:2886), the current Beneish M-Score is -2.64 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 Mega Financial Holding Co (TPE:2886) Overvalued in 2026?

Based on GuruFocus' analysis, Mega Financial Holding Co stock appears to be overvalued. The current stock price of NT$46.65 is trading 9.1% above its estimated GF Value™ of NT$42.76. GuruFocus considers Mega Financial Holding Co to be Fairly Valued.

Key valuation signals for TPE:2886:

  • Beneish M-Score: -2.64
  • GF Value™: NT$42.76 vs. price of NT$46.65 (9.1% above fair value)
  • GF Score™: 79/100 with 5 warning signs

No single metric tells the full story. See the TPE:2886 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Mega Financial Holding Co Business Description

Address Jhongsiao East Road, 14-17, 20-21 Floor Section 2, Number 123, Taipei, TWN, 10058
Mega Financial Holding Co Ltd is mainly engaged in investment activities approved by the governing authorities and management of the investee companies. Its services are provided through subsidiaries engaged in commercial banking operations, securities, bill finance, investment trust, insurance, asset management, and venture capital. The Group operates through segments comprising the Bank division, the Insurance division, the Bills division, the Securities division, and other divisions. Geographically, the Group operates in Asia, America, and Other, with maximum net revenue generated from Asia.
79GF Score

Get the complete analysis for TPE:2886

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

NT$46.65
Price
NT$42.76
GF Value