Life Insurance Nepal (XNEP:LICN) Beneish M-Score: -2.52 (As of Jul. 06, 2026)


XNEP:LICN Life Insurance Corp Nepal Ltd XNEP:LICN
82 GF Score
Price NPR790.00
GF Value NPR890.40
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Life Insurance Nepal Beneish M-Score?

Life Insurance Nepal XNEP:LICN -1.13% 82 Beneish M-Score is -2.52 as of Jul. 06, 2026. GuruFocus rates XNEP:LICN with a GF Score™ of 82/100 and a GF Value™ of NPR890.40 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 400 Insurance companies, Life Insurance Nepal ranks better than 53.75% 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Life Insurance Nepal's Beneish M-Score or its related term are showing as below:

XNEP:LICN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.52   Med: -1.55   Max: 135.65
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Life Insurance Nepal was 135.65. The lowest was -2.52. And the median was -1.55.

XNEP:LICN
82GF Score
Life Insurance Corp Nepal Ltd XNEP:LICN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Life Insurance Nepal 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 Life Insurance Nepal 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 * 0.9364+0.528 * 1+0.404 * 1.0006+0.892 * 1.0775+0.115 * 0.922
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.231+4.679 * -0.01286-0.327 * 0.8095
=-2.52

* 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 NPR3,607 Mil.
Revenue was NPR32,295 Mil.
Gross Profit was NPR32,295 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR145,827 Mil.
Property, Plant and Equipment(Net PPE) was NPR392 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR55 Mil.
Selling, General, & Admin. Expense(SGA) was NPR34 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR169 Mil.
Net Income was NPR837 Mil.
Gross Profit was NPR278 Mil.
Cash Flow from Operations was NPR2,434 Mil.
 Total Receivables was NPR3,575 Mil.
Revenue was NPR29,971 Mil.
Gross Profit was NPR29,971 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR128,381 Mil.
Property, Plant and Equipment(Net PPE) was NPR424 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR54 Mil.
Selling, General, & Admin. Expense(SGA) was NPR25 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR184 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)
=(3607.222 / 32295.139) / (3575.071 / 29971.21)
=0.111696 / 0.119284
=0.9364

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)
=(29971.21 / 29971.21) / (32295.139 / 32295.139)
=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 + 392.421) / 145826.77) / (1 - (0 + 424.229) / 128381.339)
=0.997309 / 0.996696
=1.0006

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
=32295.139 / 29971.21
=1.0775

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))
=(54.296 / (54.296 + 424.229)) / (55.073 / (55.073 + 392.421))
=0.113465 / 0.12307
=0.922

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)
=(33.546 / 32295.139) / (25.31 / 29971.21)
=0.001039 / 0.000844
=1.231

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)
=((169.172 + 0) / 145826.77) / ((183.977 + 0) / 128381.339)
=0.00116 / 0.001433
=0.8095

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
=(837.333 - 278.496 - 2434.197) / 145826.77
=-0.01286

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.

Life Insurance Nepal has a M-score of -2.52 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 -2.52 mean?
Life Insurance Nepal (XNEP:LICN) has a Beneish M-Score of -2.52 as of Jul. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Life Insurance Nepal and its competitors. According to the industry distribution chart, Life Insurance Nepal ranks #185 out of 400 companies in the Insurance industry, placing it in the top 46.2%.
Is Life Insurance Nepal's Beneish M-Score too high?
Life Insurance Nepal's current Beneish M-Score is -2.52. Based on the distribution chart, Life Insurance Nepal ranks #185 out of 400 companies in the Insurance industry, which is above the industry midpoint. Overall, Life Insurance Nepal has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Life Insurance Nepal's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, Life Insurance Nepal ranks #185 out of 400 companies for Beneish M-Score. This puts Life Insurance Nepal 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 Life Insurance Nepal and its competitors. Life Insurance Nepal's current Beneish M-Score is -2.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Insurance Nepal stock overvalued right now?
Based on GuruFocus' analysis, Life Insurance Nepal (XNEP:LICN) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR890.40, compared to a current price of NPR790.00 — trading 11.3% below its estimated fair value. The current Beneish M-Score is -2.52. Life Insurance Nepal's overall GF Score™ is 82/100 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 Life Insurance Nepal (XNEP:LICN), the current Beneish M-Score is -2.52 as of Jul. 06, 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 Life Insurance Nepal (XNEP:LICN) Overvalued in 2026?

Based on GuruFocus' analysis, Life Insurance Nepal stock appears to be undervalued. The current stock price of NPR790.00 is trading 11.3% below its estimated GF Value™ of NPR890.40. GuruFocus considers Life Insurance Nepal to be Modestly Undervalued.

Key valuation signals for XNEP:LICN:

  • Beneish M-Score: -2.52
  • GF Value™: NPR890.40 vs. price of NPR790.00 (11.3% below fair value)
  • GF Score™: 82/100 with 4 warning signs

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

Life Insurance Nepal Business Description

Address Star Mall, PO Box No 21905, 4th Floor, Putalisadak, Kathmandu, NPL
Life Insurance Corp Nepal Ltd is engaged in the life insurance business in Nepal, providing participating and non-participating life insurance products through its provincial offices, branches, sub-branches, and network of agents. Its product portfolio includes endowment plans, child plans, and money-back plans, and it provides services such as reviving lapsed policies, policy loans, nominations, and bonuses to policyholders. Revenue is mainly generated from premiums and investments, including regular and single-premium collections, returns from investments in equities, bonds, and other financial instruments, service-related fees, and commission on reinsurance ceded.
82GF Score

Get the complete analysis for XNEP:LICN

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

NPR790.00
Price
NPR890.40
GF Value