Nepal Life Insurance Co (XNEP:NLIC) Beneish M-Score: -3.34 (As of Sep. 15, 2026)

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XNEP:NLIC Nepal Life Insurance Co Ltd XNEP:NLIC
91 GF Score
Price NPR709.00
GF Value NPR813.72
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Nepal Life Insurance Co Beneish M-Score?

Nepal Life Insurance Co XNEP:NLIC +1.50% 91 Beneish M-Score is -3.34 as of Sep. 15, 2026. GuruFocus rates XNEP:NLIC with a GF Score™ of 91/100 and a GF Value™ of NPR813.72 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 402 Insurance companies, Nepal Life Insurance Co ranks better than 90.8% 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 -3.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XNEP:NLIC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Med: -2.62   Max: -2.38
Current: -3.34

During the past 13 years, the highest Beneish M-Score of Nepal Life Insurance Co was -2.38. The lowest was -3.34. And the median was -2.62.

XNEP:NLIC
91GF Score
Nepal Life Insurance Co Ltd XNEP:NLIC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nepal Life 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 Nepal Life 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 * 0.0562+0.528 * 1+0.404 * 0.9992+0.892 * 1.0835+0.115 * 1.3253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.092284-0.327 * 0
=-3.34

* 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 (Jul26) TTM:Last Year (Jul25) TTM:
Total Receivables was NPR444 Mil.
Revenue was 22034.494 + 16559.503 + 17410.634 + 18346.287 = NPR74,351 Mil.
Gross Profit was 22034.494 + 16559.503 + 17410.634 + 18346.287 = NPR74,351 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR292,332 Mil.
Property, Plant and Equipment(Net PPE) was NPR1,232 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR134 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0 Mil.
Net Income was -5.723 + 134.195 + 134.525 + 201.948 = NPR465 Mil.
Non Operating Income was 148.387 + 125.193 + 109.672 + 90.28 = NPR474 Mil.
Cash Flow from Operations was 5722.241 + 5588.491 + 4857.888 + 10800.288 = NPR26,969 Mil.
 Total Receivables was NPR7,284 Mil.
Revenue was 20629.929 + 14338.721 + 15661.323 + 17990.974 = NPR68,621 Mil.
Gross Profit was 20629.929 + 14338.721 + 15661.323 + 17990.974 = NPR68,621 Mil.
Total Current Assets was NPR0 Mil.
Total Assets was NPR251,775 Mil.
Property, Plant and Equipment(Net PPE) was NPR861 Mil.
Depreciation, Depletion and Amortization(DDA) was NPR129 Mil.
Selling, General, & Admin. Expense(SGA) was NPR0 Mil.
Total Current Liabilities was NPR0 Mil.
Long-Term Debt & Capital Lease Obligation was NPR344 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)
=(443.575 / 74350.918) / (7284.348 / 68620.947)
=0.005966 / 0.106153
=0.0562

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)
=(68620.947 / 68620.947) / (74350.918 / 74350.918)
=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 + 1231.988) / 292331.594) / (1 - (0 + 860.502) / 251775.021)
=0.995786 / 0.996582
=0.9992

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
=74350.918 / 68620.947
=1.0835

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))
=(128.869 / (128.869 + 860.502)) / (134.284 / (134.284 + 1231.988))
=0.130253 / 0.098285
=1.3253

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 / 74350.918) / (0 / 68620.947)
=0 / 0
=1

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) / 292331.594) / ((343.566 + 0) / 251775.021)
=0 / 0.001365
=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
=(464.945 - 473.532 - 26968.908) / 292331.594
=-0.092284

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.

Nepal Life Insurance Co has a M-score of -3.34 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 -3.34 mean?
Nepal Life Insurance Co (XNEP:NLIC) has a Beneish M-Score of -3.34 as of Sep. 15, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Nepal Life Insurance Co and its competitors. According to the industry distribution chart, Nepal Life Insurance Co ranks #37 out of 402 companies in the Insurance industry, placing it in the top 9.2%.
Is Nepal Life Insurance Co's Beneish M-Score too high?
Nepal Life Insurance Co's current Beneish M-Score is -3.34. Based on the distribution chart, Nepal Life Insurance Co ranks #37 out of 402 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Nepal Life Insurance Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nepal Life Insurance Co's Beneish M-Score compare to MET and AFL?
According to the Insurance industry distribution chart, Nepal Life Insurance Co ranks #37 out of 402 companies for Beneish M-Score. This places Nepal Life 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 Nepal Life Insurance Co and its competitors. Nepal Life Insurance Co's current Beneish M-Score is -3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Nepal Life Insurance Co (XNEP:NLIC) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR813.72, compared to a current price of NPR709.00 — trading 12.9% below its estimated fair value. The current Beneish M-Score is -3.34. Nepal Life Insurance Co's overall GF Score™ is 91/100 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 Nepal Life Insurance Co (XNEP:NLIC), the current Beneish M-Score is -3.34 as of Sep. 15, 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 Nepal Life Insurance Co (XNEP:NLIC) Overvalued in 2026?

Based on GuruFocus' analysis, Nepal Life Insurance Co stock appears to be undervalued. The current stock price of NPR709.00 is trading 12.9% below its estimated GF Value™ of NPR813.72. GuruFocus considers Nepal Life Insurance Co to be Modestly Undervalued.

Key valuation signals for XNEP:NLIC:

  • Beneish M-Score: -3.34
  • GF Value™: NPR813.72 vs. price of NPR709.00 (12.9% below fair value)
  • GF Score™: 91/100 with 5 warning signs

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

Nepal Life Insurance Co Business Description

Address Kamaladi, Baluwatar Complex, Kathmandu, NPL
Nepal Life Insurance Co Ltd is a Nepal based life insurance company. The company's operating segments include Endowment Life, Money Back, Jeevan Sahara, Jeevan Sarathi, and Term Life Insurance Policy. Company includes various product's like Ketaketi Sunaulo Bhawishya Jeevan Beema Yojana, Sunaulo Bhabisya Jeevan Beema Yojana, Jeevan Unnati Beema Yojana, Naulo Jeevan Sambriddhi Jeevan Beema Yojana, Anmol Jeevan Beema Yojana, iEnsure Jeevan Beema Yojana, Gramin Sawadhik Jeevan Beema Yojana and many more.
91GF Score

Get the complete analysis for XNEP:NLIC

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

NPR709.00
Price
NPR813.72
GF Value