Central Finance Co (XNEP:CFCL) Beneish M-Score: -1.36 (As of Jun. 29, 2026)


XNEP:CFCL Central Finance Co Ltd XNEP:CFCL
61 GF Score
Price NPR619.50
GF Value NPR600.70
Valuation Fairly Valued
! 4 Warning Signs
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What is Central Finance Co Beneish M-Score?

Central Finance Co XNEP:CFCL -0.85% 61 Beneish M-Score is -1.36 as of Jun. 29, 2026. GuruFocus rates XNEP:CFCL with a GF Score™ of 61/100 and a GF Value™ of NPR600.70 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,399 Banks companies, Central Finance Co ranks worse than 96.64% 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.

Warning Sign:

Beneish M-Score -1.36 higher than -1.78, which implies that the company might have manipulated its financial results.

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

XNEP:CFCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54   Med: -2.68   Max: -1.36
Current: -1.36

During the past 12 years, the highest Beneish M-Score of Central Finance Co was -1.36. The lowest was -3.54. And the median was -2.68.

XNEP:CFCL
61GF Score
Central Finance Co Ltd XNEP:CFCL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Central Finance 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 Central Finance 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 * 1.0014+0.892 * 1.5669+0.115 * 1.5737
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * 0.010085-0.327 * 0
=-1.36

* 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 (Jul25) TTM:Last Year (Jul24) TTM:
Total Receivables was NPR0.0 Mil.
Revenue was NPR276.4 Mil.
Gross Profit was NPR276.4 Mil.
Total Current Assets was NPR0.0 Mil.
Total Assets was NPR8,839.8 Mil.
Property, Plant and Equipment(Net PPE) was NPR177.9 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR17.6 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0.0 Mil.
Total Current Liabilities was NPR0.0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0.0 Mil.
Net Income was NPR89.1 Mil.
Gross Profit was NPR0.0 Mil.
Cash Flow from Operations was NPR0.0 Mil.
 Total Receivables was NPR0.0 Mil.
Revenue was NPR176.4 Mil.
Gross Profit was NPR176.4 Mil.
Total Current Assets was NPR0.0 Mil.
Total Assets was NPR8,729.4 Mil.
Property, Plant and Equipment(Net PPE) was NPR187.9 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR31.0 Mil.
Selling, General, & Admin. Expense(SGA) was NPR33.6 Mil.
Total Current Liabilities was NPR0.0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR61.7 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 / 276.444) / (0 / 176.427)
=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)
=(176.427 / 176.427) / (276.444 / 276.444)
=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 + 177.89) / 8839.786) / (1 - (0 + 187.91) / 8729.409)
=0.979876 / 0.978474
=1.0014

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
=276.444 / 176.427
=1.5669

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))
=(30.957 / (30.957 + 187.91)) / (17.567 / (17.567 + 177.89))
=0.141442 / 0.089877
=1.5737

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)
=(0 / 276.444) / (33.613 / 176.427)
=0 / 0.190521
=0

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 + 0) / 8839.786) / ((61.701 + 0) / 8729.409)
=0 / 0.007068
=0

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
=(89.148 - 0 - 0) / 8839.786
=0.010085

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.

Central Finance Co has a M-score of -1.36 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 -1.36 mean?
Central Finance Co (XNEP:CFCL) has a Beneish M-Score of -1.36 as of Jun. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Central Finance Co and its competitors. According to the industry distribution chart, Central Finance Co ranks #1352 out of 1399 companies in the Banks industry, placing it in the top 96.6%.
Is Central Finance Co's Beneish M-Score too high?
Central Finance Co's current Beneish M-Score is -1.36. Based on the distribution chart, Central Finance Co ranks #1352 out of 1399 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Central Finance Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Central Finance Co's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Central Finance Co ranks #1352 out of 1399 companies for Beneish M-Score. This places Central Finance 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 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 Central Finance Co and its competitors. Central Finance Co's current Beneish M-Score is -1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Central Finance Co (XNEP:CFCL) is currently considered Fairly Valued. The stock's GF Value™ is NPR600.70, compared to a current price of NPR619.50 — trading 3.1% above its estimated fair value. The current Beneish M-Score is -1.36. Central Finance Co's overall GF Score™ is 61/100 with 4 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 Central Finance Co (XNEP:CFCL), the current Beneish M-Score is -1.36 as of Jun. 29, 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 Central Finance Co (XNEP:CFCL) Overvalued in 2026?

Based on GuruFocus' analysis, Central Finance Co stock appears to be overvalued. The current stock price of NPR619.50 is trading 3.1% above its estimated GF Value™ of NPR600.70. GuruFocus considers Central Finance Co to be Fairly Valued.

Key valuation signals for XNEP:CFCL:

  • Beneish M-Score: -1.36
  • GF Value™: NPR600.70 vs. price of NPR619.50 (3.1% above fair value)
  • GF Score™: 61/100 with 4 warning signs

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

Central Finance Co Business Description

Address Kupondole Road, Lalitpur, NPL, 44600
Central Finance Co Ltd operates as a financial services company in Nepal. It accepts deposits, issues loans, issues, and processes debit cards, and is engaged in investing and trading securities, as well as performing other activities. The company offers a range of financial products and services to a wide range of clients encompassing individuals, mid-markets, and corporates. The company identifies operating segments based on its geographical presence in seven provinces in Nepal, which are Bagmati Pradesh, its key revenue-generating segment, Koshi, Madhesh Pradesh, Lumbini, Gandaki, Karnali, and Sudurpachim.
61GF Score

Get the complete analysis for XNEP:CFCL

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

NPR619.50
Price
NPR600.70
GF Value