Hong Leong Capital Bhd (XKLS:5274) Beneish M-Score: -2.58 (As of Jul. 05, 2026)


XKLS:5274 Hong Leong Capital Bhd XKLS:5274
62 GF Score
Price RM3.09
GF Value RM3.62
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Hong Leong Capital Bhd Beneish M-Score?

Hong Leong Capital Bhd XKLS:5274 -1.59% 62 Beneish M-Score is -2.58 as of Jul. 05, 2026. GuruFocus rates XKLS:5274 with a GF Score™ of 62/100 and a GF Value™ of RM3.62 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 705 Capital Markets companies, Hong Leong Capital Bhd ranks better than 69.36% 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hong Leong Capital Bhd's Beneish M-Score or its related term are showing as below:

XKLS:5274' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.56   Max: -1.66
Current: -2.58

During the past 13 years, the highest Beneish M-Score of Hong Leong Capital Bhd was -1.66. The lowest was -3.51. And the median was -2.56.

XKLS:5274
62GF Score
Hong Leong Capital Bhd XKLS:5274
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Hong Leong Capital Bhd 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 Hong Leong Capital Bhd 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 * 1.0007+0.892 * 0.9029+0.115 * 0.9687
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2386+4.679 * 0.002176-0.327 * 0.9453
=-2.58

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was RM0.0 Mil.
Revenue was 46.533 + 56.118 + 59.219 + 61.231 = RM223.1 Mil.
Gross Profit was 46.533 + 56.118 + 59.219 + 61.231 = RM223.1 Mil.
Total Current Assets was RM0.0 Mil.
Total Assets was RM5,102.1 Mil.
Property, Plant and Equipment(Net PPE) was RM12.0 Mil.
Depreciation, Depletion and Amortization(DDA) was RM6.5 Mil.
Selling, General, & Admin. Expense(SGA) was RM28.6 Mil.
Total Current Liabilities was RM0.0 Mil.
Long-Term Debt & Capital Lease Obligation was RM109.2 Mil.
Net Income was 10.072 + 17.774 + 18.91 + 17.639 = RM64.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.0 Mil.
Cash Flow from Operations was 41.1 + -111.374 + -246.92 + 370.487 = RM53.3 Mil.
 Total Receivables was RM0.0 Mil.
Revenue was 46.59 + 51.662 + 56.645 + 92.203 = RM247.1 Mil.
Gross Profit was 46.59 + 51.662 + 56.645 + 92.203 = RM247.1 Mil.
Total Current Assets was RM0.0 Mil.
Total Assets was RM4,974.9 Mil.
Property, Plant and Equipment(Net PPE) was RM14.9 Mil.
Depreciation, Depletion and Amortization(DDA) was RM7.7 Mil.
Selling, General, & Admin. Expense(SGA) was RM25.6 Mil.
Total Current Liabilities was RM0.0 Mil.
Long-Term Debt & Capital Lease Obligation was RM112.7 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 / 223.101) / (0 / 247.1)
=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)
=(247.1 / 247.1) / (223.101 / 223.101)
=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 + 11.972) / 5102.071) / (1 - (0 + 14.91) / 4974.918)
=0.997654 / 0.997003
=1.0007

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
=223.101 / 247.1
=0.9029

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))
=(7.735 / (7.735 + 14.91)) / (6.521 / (6.521 + 11.972))
=0.341577 / 0.35262
=0.9687

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)
=(28.609 / 223.101) / (25.583 / 247.1)
=0.128233 / 0.103533
=1.2386

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)
=((109.24 + 0) / 5102.071) / ((112.682 + 0) / 4974.918)
=0.021411 / 0.02265
=0.9453

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
=(64.395 - 0 - 53.293) / 5102.071
=0.002176

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.

Hong Leong Capital Bhd has a M-score of -2.58 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 -2.58 mean?
Hong Leong Capital Bhd (XKLS:5274) has a Beneish M-Score of -2.58 as of Jul. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hong Leong Capital Bhd and its competitors. According to the industry distribution chart, Hong Leong Capital Bhd ranks #216 out of 705 companies in the Capital Markets industry, placing it in the top 30.6%.
Is Hong Leong Capital Bhd's Beneish M-Score too high?
Hong Leong Capital Bhd's current Beneish M-Score is -2.58. Based on the distribution chart, Hong Leong Capital Bhd ranks #216 out of 705 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Hong Leong Capital Bhd has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Capital Bhd's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Hong Leong Capital Bhd ranks #216 out of 705 companies for Beneish M-Score. This puts Hong Leong Capital Bhd in the upper 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 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 Hong Leong Capital Bhd and its competitors. Hong Leong Capital Bhd's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Capital Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Capital Bhd (XKLS:5274) is currently considered Modestly Undervalued. The stock's GF Value™ is RM3.62, compared to a current price of RM3.09 — trading 14.6% below its estimated fair value. The current Beneish M-Score is -2.58. Hong Leong Capital Bhd'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 Hong Leong Capital Bhd (XKLS:5274), the current Beneish M-Score is -2.58 as of Jul. 05, 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 Hong Leong Capital Bhd (XKLS:5274) Overvalued in 2026?

Based on GuruFocus' analysis, Hong Leong Capital Bhd stock appears to be undervalued. The current stock price of RM3.09 is trading 14.6% below its estimated GF Value™ of RM3.62. GuruFocus considers Hong Leong Capital Bhd to be Modestly Undervalued.

Key valuation signals for XKLS:5274:

  • Beneish M-Score: -2.58
  • GF Value™: RM3.62 vs. price of RM3.09 (14.6% below fair value)
  • GF Score™: 62/100 with 2 warning signs

No single metric tells the full story. See the XKLS:5274 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hong Leong Capital Bhd Business Description

Address No. 6, Jalan Damanlela, Level 30, Menara Hong Leong, Bukit Damansara, Kuala Lumpur, SGR, MYS, 50490
Hong Leong Capital Bhd is an investment holding company. Along with its subsidiaries, it offers various financial services in the areas of investment banking, stockbroking, futures broking, nominees and custodian services, unit trust and fund management, and related financial services, and investment management services. The group's operating business segments are: Investment banking and stockbroking, Fund management and unit trust management, and Investment holding and others. The majority of its revenue is generated from the Investment banking and stockbroking segment. Geographically, the group operates only in Malaysia.
62GF Score

Get the complete analysis for XKLS:5274

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

RM3.09
Price
RM3.62
GF Value