TRUFF (Red Light Holland) Beneish M-Score: -1.34 (As of Jun. 26, 2026)


What is Red Light Holland Beneish M-Score?

Red Light Holland TRUFF +5.24% Beneish M-Score is -1.34 as of Jun. 26, 2026. The stock has 4 warning signs investors should review. Among 911 Drug Manufacturers companies, Red Light Holland ranks worse than 89.9% on this metric.

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 -1.34 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Red Light Holland's Beneish M-Score or its related term are showing as below:

TRUFF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Med: -2.46   Max: 13.61
Current: -1.34

During the past 7 years, the highest Beneish M-Score of Red Light Holland was 13.61. The lowest was -4.07. And the median was -2.46.

Red Light Holland Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Red Light Holland's Beneish M-Score can be seen below:

* 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.

Red Light Holland Beneish M-Score Chart

Red Light Holland Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Beneish M-Score
Get a 7-Day Free Trial 0.00 13.61 -1.83 -3.09 -3.57

Red Light Holland Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.69 -3.57 -3.50 -4.07 -1.34

TRUFF vs ZTS: Beneish M-Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Red Light Holland's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Red Light Holland Beneish M-Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Red Light Holland's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Red Light Holland's Beneish M-Score falls into.


Red Light Holland 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 Red Light Holland 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 * 3.1524+0.528 * 1.1221+0.404 * 0.6092+0.892 * 0.7683+0.115 * 1.5131
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1615+4.679 * -0.07557-0.327 * 1.2855
=-1.22

* 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 $0.59 Mil.
Revenue was 0.917 + 0.545 + 0.952 + 0.591 = $3.01 Mil.
Gross Profit was 0.26 + 0.236 + 0.327 + 0.224 = $1.05 Mil.
Total Current Assets was $10.36 Mil.
Total Assets was $13.19 Mil.
Property, Plant and Equipment(Net PPE) was $2.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General, & Admin. Expense(SGA) was $3.92 Mil.
Total Current Liabilities was $2.27 Mil.
Long-Term Debt & Capital Lease Obligation was $0.17 Mil.
Net Income was -1 + -0.844 + -0.752 + -0.974 = $-3.57 Mil.
Non Operating Income was -0.204 + -0.209 + 0.003 + -0.358 = $-0.77 Mil.
Cash Flow from Operations was -0.581 + -0.547 + -0.295 + -0.382 = $-1.81 Mil.
 Total Receivables was $0.24 Mil.
Revenue was 0.82 + 1.01 + 1.138 + 0.943 = $3.91 Mil.
Gross Profit was 0.291 + 0.408 + 0.456 + 0.374 = $1.53 Mil.
Total Current Assets was $10.51 Mil.
Total Assets was $15.57 Mil.
Property, Plant and Equipment(Net PPE) was $4.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.79 Mil.
Selling, General, & Admin. Expense(SGA) was $4.39 Mil.
Total Current Liabilities was $2.13 Mil.
Long-Term Debt & Capital Lease Obligation was $0.12 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)
=(0.591 / 3.005) / (0.244 / 3.911)
=0.196672 / 0.062388
=3.1524

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)
=(1.529 / 3.911) / (1.047 / 3.005)
=0.390949 / 0.348419
=1.1221

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 - (10.361 + 2.349) / 13.193) / (1 - (10.51 + 4.128) / 15.574)
=0.03661 / 0.0601
=0.6092

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
=3.005 / 3.911
=0.7683

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))
=(0.793 / (0.793 + 4.128)) / (0.28 / (0.28 + 2.349))
=0.161146 / 0.106504
=1.5131

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)
=(3.915 / 3.005) / (4.387 / 3.911)
=1.302829 / 1.121708
=1.1615

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)
=((0.174 + 2.273) / 13.193) / ((0.122 + 2.125) / 15.574)
=0.185477 / 0.144279
=1.2855

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
=(-3.57 - -0.768 - -1.805) / 13.193
=-0.07557

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.

Red Light Holland has a M-score of -1.22 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 -1.34 mean?
Red Light Holland (TRUFF) has a Beneish M-Score of -1.34 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Red Light Holland and its competitors. According to the industry distribution chart, Red Light Holland ranks #819 out of 911 companies in the Drug Manufacturers industry, placing it in the top 89.9%.
Is Red Light Holland's Beneish M-Score too high?
Red Light Holland's current Beneish M-Score is -1.34. Based on the distribution chart, Red Light Holland ranks #819 out of 911 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers.
How does Red Light Holland's Beneish M-Score compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Red Light Holland ranks #819 out of 911 companies for Beneish M-Score. This places Red Light Holland 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Red Light Holland and its competitors. Red Light Holland's current Beneish M-Score is -1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Light Holland stock overvalued right now?
Based on GuruFocus' analysis, Red Light Holland (TRUFF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.02 — trading 28.4% below its estimated fair value. The current Beneish M-Score is -1.34. 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 Red Light Holland (TRUFF), the current Beneish M-Score is -1.34 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.

Red Light Holland Business Description

Other Exchanges 4YX:GermanyTRIP:Canada
Address 1 Adelaide Street East, Suite 801, Toronto, ON, CAN, M5C 2V9
Red Light Holland Corp is engaged in the production, growth, and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands. Its products include Microdosing Kit and Merch. Its revenue is comprised of sales of wholesale truffles, cannabis seeds, and other cannabis products and sales of microdose packs.