Hong Leong Bank Bhd (XKLS:5819) Beneish M-Score: -2.37 (As of Jun. 26, 2026)


XKLS:5819 Hong Leong Bank Bhd XKLS:5819
77 GF Score
Price RM21.74
GF Value RM23.24
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Hong Leong Bank Bhd Beneish M-Score?

Hong Leong Bank Bhd XKLS:5819 -0.91% 77 Beneish M-Score is -2.37 as of Jun. 26, 2026. GuruFocus rates XKLS:5819 with a GF Score™ of 77/100 and a GF Value™ of RM23.24 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,397 Banks companies, Hong Leong Bank Bhd ranks worse than 55.55% 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 -2.37 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 Bank Bhd's Beneish M-Score or its related term are showing as below:

XKLS:5819' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75   Med: -2.48   Max: -1.74
Current: -2.37

During the past 13 years, the highest Beneish M-Score of Hong Leong Bank Bhd was -1.74. The lowest was -2.75. And the median was -2.48.

XKLS:5819
77GF Score
Hong Leong Bank Bhd XKLS:5819
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hong Leong Bank 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 Bank 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 * 1.0001+0.892 * 1.0525+0.115 * 1.073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9669+4.679 * 0.01373-0.327 * 1.0362
=-2.37

* 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 Mil.
Revenue was 1552.832 + 1631.688 + 1648.494 + 1591.064 = RM6,424 Mil.
Gross Profit was 1552.832 + 1631.688 + 1648.494 + 1591.064 = RM6,424 Mil.
Total Current Assets was RM0 Mil.
Total Assets was RM317,310 Mil.
Property, Plant and Equipment(Net PPE) was RM1,119 Mil.
Depreciation, Depletion and Amortization(DDA) was RM196 Mil.
Selling, General, & Admin. Expense(SGA) was RM439 Mil.
Total Current Liabilities was RM0 Mil.
Long-Term Debt & Capital Lease Obligation was RM4,590 Mil.
Net Income was 1029.256 + 1168.536 + 1090.977 + 1088.606 = RM4,377 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0 Mil.
Cash Flow from Operations was 1493.242 + 1824.261 + -5736.712 + 2439.932 = RM21 Mil.
 Total Receivables was RM0 Mil.
Revenue was 1504.974 + 1599.639 + 1561.88 + 1437.421 = RM6,104 Mil.
Gross Profit was 1504.974 + 1599.639 + 1561.88 + 1437.421 = RM6,104 Mil.
Total Current Assets was RM0 Mil.
Total Assets was RM300,905 Mil.
Property, Plant and Equipment(Net PPE) was RM1,093 Mil.
Depreciation, Depletion and Amortization(DDA) was RM208 Mil.
Selling, General, & Admin. Expense(SGA) was RM432 Mil.
Total Current Liabilities was RM0 Mil.
Long-Term Debt & Capital Lease Obligation was RM4,200 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 / 6424.078) / (0 / 6103.914)
=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)
=(6103.914 / 6103.914) / (6424.078 / 6424.078)
=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 + 1118.72) / 317309.976) / (1 - (0 + 1092.612) / 300904.859)
=0.996474 / 0.996369
=1.0001

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
=6424.078 / 6103.914
=1.0525

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))
=(207.749 / (207.749 + 1092.612)) / (195.709 / (195.709 + 1118.72))
=0.159763 / 0.148893
=1.073

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)
=(439.095 / 6424.078) / (431.504 / 6103.914)
=0.068351 / 0.070693
=0.9669

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)
=((4589.886 + 0) / 317309.976) / ((4200.246 + 0) / 300904.859)
=0.014465 / 0.013959
=1.0362

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
=(4377.375 - 0 - 20.723) / 317309.976
=0.01373

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 Bank Bhd has a M-score of -2.37 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 -2.37 mean?
Hong Leong Bank Bhd (XKLS:5819) has a Beneish M-Score of -2.37 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hong Leong Bank Bhd and its competitors. According to the industry distribution chart, Hong Leong Bank Bhd ranks #776 out of 1397 companies in the Banks industry, placing it in the top 55.5%.
Is Hong Leong Bank Bhd's Beneish M-Score too high?
Hong Leong Bank Bhd's current Beneish M-Score is -2.37. Based on the distribution chart, Hong Leong Bank Bhd ranks #776 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Hong Leong Bank Bhd has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Bank Bhd's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Hong Leong Bank Bhd ranks #776 out of 1397 companies for Beneish M-Score. This places Hong Leong Bank Bhd 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 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 Hong Leong Bank Bhd and its competitors. Hong Leong Bank Bhd's current Beneish M-Score is -2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Bank Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Bank Bhd (XKLS:5819) is currently considered Fairly Valued. The stock's GF Value™ is RM23.24, compared to a current price of RM21.74 — trading 6.5% below its estimated fair value. The current Beneish M-Score is -2.37. Hong Leong Bank Bhd's overall GF Score™ is 77/100 with 3 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 Bank Bhd (XKLS:5819), the current Beneish M-Score is -2.37 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 Hong Leong Bank Bhd (XKLS:5819) Overvalued in 2026?

Based on GuruFocus' analysis, Hong Leong Bank Bhd stock appears to be undervalued. The current stock price of RM21.74 is trading 6.5% below its estimated GF Value™ of RM23.24. GuruFocus considers Hong Leong Bank Bhd to be Fairly Valued.

Key valuation signals for XKLS:5819:

  • Beneish M-Score: -2.37
  • GF Value™: RM23.24 vs. price of RM21.74 (6.5% below fair value)
  • GF Score™: 77/100 with 3 warning signs

No single metric tells the full story. See the XKLS:5819 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hong Leong Bank Bhd Business Description

Address No.6, Jalan Damanlela, Level 30, Menara Hong Leong, Bukit, Damansara, Kuala Lumpur, MYS, 50490
Hong Leong Bank Bhd is a regional financial services company. Its segments include Personal Financial Services, Business & Corporate Banking, Global Markets, Overseas/International Operations, and Other operations. Personal Financial Services segment focuses mainly on servicing individual customers and small businesses. Business & Corporate Banking focuses on corporate and small and medium enterprises. Global Markets refers to its domestic treasury and capital market operations and includes foreign exchange, money market operations as well as capital market securities trading and investments. Overseas/International Operations include the bank's overseas branches, subsidiaries, and associates. Other operations segment includes head office and other business segment.
77GF Score

Get the complete analysis for XKLS:5819

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

RM21.74
Price
RM23.24
GF Value