NLG Insurance Co (XNEP:NLG) Beneish M-Score: -3.27 (As of Aug. 06, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XNEP:NLG NLG Insurance Co Ltd XNEP:NLG
84 GF Score
Price NPR585.00
GF Value NPR874.66
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is NLG Insurance Co Beneish M-Score?

NLG Insurance Co XNEP:NLG +1.76% 84 Beneish M-Score is -3.27 as of Aug. 06, 2026. GuruFocus rates XNEP:NLG with a GF Score™ of 84/100 and a GF Value™ of NPR874.66 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 398 Insurance companies, NLG Insurance Co ranks better than 90.7% 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 -3.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:NLG' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Med: -3.27   Max: -1.83
Current: -3.27

During the past 13 years, the highest Beneish M-Score of NLG Insurance Co was -1.83. The lowest was -4.00. And the median was -3.27.

XNEP:NLG
84GF Score
NLG Insurance Co Ltd XNEP:NLG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

NLG 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 NLG 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 * 1.0423+0.528 * 1+0.404 * 0.9975+0.892 * 1.299+0.115 * 1.5806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7523+4.679 * -0.237098-0.327 * 1.2863
=-3.27

* 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 NPR1,337 Mil.
Revenue was NPR1,600 Mil.
Gross Profit was NPR1,600 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR8,756 Mil.
Property, Plant and Equipment(Net PPE) was NPR113 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR37 Mil.
Selling, General, & Admin. Expense(SGA) was NPR53 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR85 Mil.
Net Income was NPR153 Mil.
Gross Profit was NPR24 Mil.
Cash Flow from Operations was NPR2,206 Mil.
 Total Receivables was NPR987 Mil.
Revenue was NPR1,232 Mil.
Gross Profit was NPR1,232 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR6,645 Mil.
Property, Plant and Equipment(Net PPE) was NPR69 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR44 Mil.
Selling, General, & Admin. Expense(SGA) was NPR54 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR50 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)
=(1336.556 / 1599.8) / (987.102 / 1231.52)
=0.835452 / 0.801531
=1.0423

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)
=(1231.52 / 1231.52) / (1599.8 / 1599.8)
=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 + 112.846) / 8755.987) / (1 - (0 + 69.023) / 6645.168)
=0.987112 / 0.989613
=0.9975

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
=1599.8 / 1231.52
=1.299

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))
=(43.909 / (43.909 + 69.023)) / (36.816 / (36.816 + 112.846))
=0.388809 / 0.245994
=1.5806

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)
=(52.982 / 1599.8) / (54.218 / 1231.52)
=0.033118 / 0.044025
=0.7523

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)
=((85.446 + 0) / 8755.987) / ((50.419 + 0) / 6645.168)
=0.009759 / 0.007587
=1.2863

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
=(153.388 - 23.833 - 2205.583) / 8755.987
=-0.237098

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.

NLG Insurance Co has a M-score of -3.27 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 -3.27 mean?
NLG Insurance Co (XNEP:NLG) has a Beneish M-Score of -3.27 as of Aug. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on NLG Insurance Co and its competitors. According to the industry distribution chart, NLG Insurance Co ranks #37 out of 398 companies in the Insurance industry, placing it in the top 9.3%.
Is NLG Insurance Co's Beneish M-Score too high?
NLG Insurance Co's current Beneish M-Score is -3.27. Based on the distribution chart, NLG Insurance Co ranks #37 out of 398 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, NLG Insurance Co has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NLG Insurance Co's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, NLG Insurance Co ranks #37 out of 398 companies for Beneish M-Score. This places NLG Insurance Co in the top 9% of its industry — outperforming the majority of peers. 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 NLG Insurance Co and its competitors. NLG Insurance Co's current Beneish M-Score is -3.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NLG Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, NLG Insurance Co (XNEP:NLG) is currently considered Significantly Undervalued. The stock's GF Value™ is NPR874.66, compared to a current price of NPR585.00 — trading 33.1% below its estimated fair value. The current Beneish M-Score is -3.27. NLG Insurance Co's overall GF Score™ is 84/100 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 NLG Insurance Co (XNEP:NLG), the current Beneish M-Score is -3.27 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 NLG Insurance Co (XNEP:NLG) Overvalued in 2026?

Based on GuruFocus' analysis, NLG Insurance Co stock appears to be undervalued. The current stock price of NPR585.00 is trading 33.1% below its estimated GF Value™ of NPR874.66. GuruFocus considers NLG Insurance Co to be Significantly Undervalued.

Key valuation signals for XNEP:NLG:

  • Beneish M-Score: -3.27
  • GF Value™: NPR874.66 vs. price of NPR585.00 (33.1% below fair value)
  • GF Score™: 84/100 with 2 warning signs

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

NLG Insurance Co Business Description

Address Lazimpat, Kathmandu, NPL
NLG Insurance Co Ltd is a composite insurance company. It provides non-life insurance products. The company's offerings include Motor, Property, Engineering, Marine, Aviation, Agriculture, and Miscellaneous Insurance.
84GF Score

Get the complete analysis for XNEP:NLG

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

NPR585.00
Price
NPR874.66
GF Value