Neco Insurance Co (XNEP:NIL) Beneish M-Score: 0.00 (As of Aug. 06, 2026)

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XNEP:NIL Neco Insurance Co Ltd XNEP:NIL
98 GF Score
Price NPR617.10
GF Value NPR735.70
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is Neco Insurance Co Beneish M-Score?

Neco Insurance Co XNEP:NIL -0.39% 98 Beneish M-Score is 0.00 as of Aug. 06, 2026. GuruFocus rates XNEP:NIL with a GF Score™ of 98/100 and a GF Value™ of NPR735.70 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 399 Insurance companies, Neco Insurance Co ranks worse than 250626.32% 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.

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

During the past 13 years, the highest Beneish M-Score of Neco Insurance Co was -0.48. The lowest was -2.99. And the median was -2.58.

XNEP:NIL
98GF Score
Neco Insurance Co Ltd XNEP:NIL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Neco Insurance 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 Neco Insurance 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 NPR405 Mil.
Revenue was NPR2,683 Mil.
Gross Profit was NPR2,683 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR11,034 Mil.
Property, Plant and Equipment(Net PPE) was NPR656 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR74 Mil.
Selling, General, & Admin. Expense(SGA) was NPR36 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0 Mil.
Net Income was NPR579 Mil.
Gross Profit was NPR36 Mil.
Cash Flow from Operations was NPR883 Mil.
 Total Receivables was NPR275 Mil.
Revenue was NPR2,410 Mil.
Gross Profit was NPR2,410 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR9,657 Mil.
Property, Plant and Equipment(Net PPE) was NPR658 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR80 Mil.
Selling, General, & Admin. Expense(SGA) was NPR25 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0 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)
=(404.972 / 2682.832) / (275.161 / 2410.002)
=0.150949 / 0.114175
=

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)
=(2410.002 / 2410.002) / (2682.832 / 2682.832)
=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 + 656.491) / 11034.096) / (1 - (0 + 657.638) / 9656.538)
=0.940503 / 0.931897
=

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
=2682.832 / 2410.002
=

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))
=(79.749 / (79.749 + 657.638)) / (74.49 / (74.49 + 656.491))
=0.108151 / 0.101904
=

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)
=(35.97 / 2682.832) / (25.164 / 2410.002)
=0.013407 / 0.010441
=

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) / 11034.096) / ((0 + 0) / 9656.538)
=0 / 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
=(578.845 - 35.513 - 883.395) / 11034.096
=-0.030819

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.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.00 mean?
Neco Insurance Co (XNEP:NIL) has a Beneish M-Score of 0.00 as of Aug. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Neco Insurance Co and its competitors. According to the industry distribution chart, Neco Insurance Co ranks #999999 out of 399 companies in the Insurance industry.
Is Neco Insurance Co's Beneish M-Score too high?
Neco Insurance Co's current Beneish M-Score is 0.00. Based on the distribution chart, Neco Insurance Co ranks #999999 out of 399 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Neco Insurance Co has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Neco Insurance Co's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Neco Insurance Co ranks #999999 out of 399 companies for Beneish M-Score. This places Neco Insurance 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 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 Neco Insurance Co and its competitors. Neco Insurance Co's current Beneish M-Score is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neco Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Neco Insurance Co (XNEP:NIL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR735.70, compared to a current price of NPR617.10 — trading 16.1% below its estimated fair value. The current Beneish M-Score is 0.00. Neco Insurance Co's overall GF Score™ is 98/100 with 5 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 Neco Insurance Co (XNEP:NIL), the current Beneish M-Score is 0.00 as of Aug. 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 Neco Insurance Co (XNEP:NIL) Overvalued in 2026?

Based on GuruFocus' analysis, Neco Insurance Co stock appears to be undervalued. The current stock price of NPR617.10 is trading 16.1% below its estimated GF Value™ of NPR735.70. GuruFocus considers Neco Insurance Co to be Modestly Undervalued.

Key valuation signals for XNEP:NIL:

  • Beneish M-Score: 0.00
  • GF Value™: NPR735.70 vs. price of NPR617.10 (16.1% below fair value)
  • GF Score™: 98/100 with 5 warning signs

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

Neco Insurance Co Business Description

Address Beema Bhawan, P.O. Box No. 12271, Gyaneshwor, Kathmandu, NPL
Neco Insurance Co Ltd is a non-life insurance company. The firm's business segment comprises Aviation, Engineering, Fire, Marine, Motor, Micro, Cattle and Crop, and Miscellaneous. The company underwrites all types of general insurance risk through different kinds of policies prevailing in the market under seven categories, i.e., Property, Motor, Aviation, Marine, Engineering, Agriculture, and Miscellaneous.
98GF Score

Get the complete analysis for XNEP:NIL

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

NPR617.10
Price
NPR735.70
GF Value