Daiwa Securities Group (FRA:DSE) Beneish M-Score: -2.39 (As of Jun. 26, 2026)


FRA:DSE Daiwa Securities Group Inc FRA:DSE
66 GF Score
Price €8.45
GF Value €7.51
! 4 Warning Signs
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What is Daiwa Securities Group Beneish M-Score?

Daiwa Securities Group FRA:DSE +0.60% 66 Beneish M-Score is -2.39 as of Jun. 26, 2026. GuruFocus rates FRA:DSE with a GF Score™ of 66/100 and a GF Value™ of €7.51. The stock has 4 warning signs investors should review. Among 702 Capital Markets companies, Daiwa Securities Group ranks better than 60.97% 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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Daiwa Securities Group's Beneish M-Score or its related term are showing as below:

FRA:DSE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68   Med: -2.39   Max: -2.11
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Daiwa Securities Group was -2.11. The lowest was -2.68. And the median was -2.39.

FRA:DSE
66GF Score
Daiwa Securities Group Inc FRA:DSE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Daiwa Securities Group 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 Daiwa Securities Group 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 * 1.0005+0.892 * 0.9987+0.115 * 1.0334
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9894+4.679 * -0.006925-0.327 * 1.0126
=-2.51

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €0 Mil.
Revenue was €4,834 Mil.
Gross Profit was €4,834 Mil.
Total Current Assets was €0 Mil.
Total Assets was €207,566 Mil.
Property, Plant and Equipment(Net PPE) was €5,331 Mil.
Depreciation, Depletion and Amortization(DDA) was €250 Mil.
Selling, General, & Admin. Expense(SGA) was €737 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €31,462 Mil.
Net Income was €955 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €2,393 Mil.
 Total Receivables was €0 Mil.
Revenue was €4,841 Mil.
Gross Profit was €4,841 Mil.
Total Current Assets was €0 Mil.
Total Assets was €223,555 Mil.
Property, Plant and Equipment(Net PPE) was €5,847 Mil.
Depreciation, Depletion and Amortization(DDA) was €284 Mil.
Selling, General, & Admin. Expense(SGA) was €746 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €33,464 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 / 4834.334) / (0 / 4840.771)
=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)
=(4840.771 / 4840.771) / (4834.334 / 4834.334)
=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 + 5330.954) / 207566.192) / (1 - (0 + 5847.135) / 223554.653)
=0.974317 / 0.973845
=1.0005

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
=4834.334 / 4840.771
=0.9987

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))
=(284.343 / (284.343 + 5847.135)) / (250.479 / (250.479 + 5330.954))
=0.046374 / 0.044877
=1.0334

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)
=(737.058 / 4834.334) / (745.951 / 4840.771)
=0.152463 / 0.154098
=0.9894

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)
=((31461.665 + 0) / 207566.192) / ((33463.894 + 0) / 223554.653)
=0.151574 / 0.14969
=1.0126

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
=(955.479 - 0 - 2392.844) / 207566.192
=-0.006925

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.

Daiwa Securities Group has a M-score of -2.51 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 -2.39 mean?
Daiwa Securities Group (FRA:DSE) has a Beneish M-Score of -2.39 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Daiwa Securities Group and its competitors. According to the industry distribution chart, Daiwa Securities Group ranks #274 out of 702 companies in the Capital Markets industry, placing it in the top 39%.
Is Daiwa Securities Group's Beneish M-Score too high?
Daiwa Securities Group's current Beneish M-Score is -2.39. Based on the distribution chart, Daiwa Securities Group ranks #274 out of 702 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Daiwa Securities Group has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Securities Group's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Daiwa Securities Group ranks #274 out of 702 companies for Beneish M-Score. This puts Daiwa Securities Group 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 a Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Daiwa Securities Group and its competitors. Daiwa Securities Group's current Beneish M-Score is -2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Securities Group stock overvalued right now?
Daiwa Securities Group (FRA:DSE) has a current Beneish M-Score of -2.39. The stock's GF Value™ is €7.51, compared to a current price of €8.45 — trading 12.5% above its estimated fair value. The current Beneish M-Score is -2.39. Daiwa Securities Group's overall GF Score™ is 66/100 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 Daiwa Securities Group (FRA:DSE), the current Beneish M-Score is -2.39 as of Jun. 26, 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 Daiwa Securities Group (FRA:DSE) Overvalued in 2026?

Based on GuruFocus' analysis, Daiwa Securities Group stock appears to be overvalued. The current stock price of €8.45 is trading 12.5% above its estimated GF Value™ of €7.51.

Key valuation signals for FRA:DSE:

  • Beneish M-Score: -2.39
  • GF Value™: €7.51 vs. price of €8.45 (12.5% above fair value)
  • GF Score™: 66/100 with 4 warning signs

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

Daiwa Securities Group Business Description

Address 1-9-1 Marunouchi, Gran Tokyo North Tower, Chiyoda-ku, Tokyo, JPN, 100-6751
Daiwa Securities Group Inc is a Japan-based financial services company. The company operates through four segments. The Asset Management Division manages investment trusts, funds, and corporations across assets, including private equity, real estate, renewable energy, and infrastructure, while also offering advisory services to institutional investors in Japan and overseas. The Global Markets & Investment Banking Division handles sales and trading of securities, foreign exchange, and derivatives, and provides underwriting and M&A advisory. The Wealth Management Division serves individuals and private corporate clients with diverse financial products. Others include subsidiary management, information services, administration, and real estate leasing.
66GF Score

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

€8.45
Price
€7.51
GF Value