Resona Holdings (FRA:DW1) Beneish M-Score: -1.92 (As of Jun. 25, 2026)


FRA:DW1 Resona Holdings Inc FRA:DW1
65 GF Score
Price €11.50
GF Value €7.46
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Resona Holdings Beneish M-Score?

Resona Holdings FRA:DW1 -0.86% 65 Beneish M-Score is -1.92 as of Jun. 25, 2026. GuruFocus rates FRA:DW1 with a GF Score™ of 65/100 and a GF Value™ of €7.46 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,396 Banks companies, Resona Holdings ranks worse than 92.26% 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 -1.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:DW1' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91   Med: -2.38   Max: -1.92
Current: -1.92

During the past 13 years, the highest Beneish M-Score of Resona Holdings was -1.92. The lowest was -3.91. And the median was -2.38.

FRA:DW1
65GF Score
Resona Holdings Inc FRA:DW1
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Resona Holdings 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 Resona Holdings 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+0.892 * 1.0253+0.115 * 1.0253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.892+4.679 * 0.065484-0.327 * 0.7386
=-2.04

* 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 €5,598 Mil.
Gross Profit was €5,598 Mil.
Total Current Assets was €0 Mil.
Total Assets was €415,910 Mil.
Property, Plant and Equipment(Net PPE) was €1,675 Mil.
Depreciation, Depletion and Amortization(DDA) was €205 Mil.
Selling, General, & Admin. Expense(SGA) was €2,541 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €27,036 Mil.
Net Income was €1,410 Mil.
Gross Profit was €0 Mil.
Cash Flow from Operations was €-25,825 Mil.
 Total Receivables was €0 Mil.
Revenue was €5,460 Mil.
Gross Profit was €5,460 Mil.
Total Current Assets was €0 Mil.
Total Assets was €480,137 Mil.
Property, Plant and Equipment(Net PPE) was €1,936 Mil.
Depreciation, Depletion and Amortization(DDA) was €244 Mil.
Selling, General, & Admin. Expense(SGA) was €2,779 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €42,255 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 / 5597.792) / (0 / 5459.723)
=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)
=(5459.723 / 5459.723) / (5597.792 / 5597.792)
=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 + 1675.138) / 415909.715) / (1 - (0 + 1935.959) / 480136.57)
=0.995972 / 0.995968
=1

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
=5597.792 / 5459.723
=1.0253

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))
=(243.584 / (243.584 + 1935.959)) / (204.919 / (204.919 + 1675.138))
=0.111759 / 0.108996
=1.0253

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)
=(2541.426 / 5597.792) / (2778.743 / 5459.723)
=0.454005 / 0.508953
=0.892

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)
=((27036.47 + 0) / 415909.715) / ((42255.451 + 0) / 480136.57)
=0.065006 / 0.088007
=0.7386

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
=(1410.3 - 0 - -25825.191) / 415909.715
=0.065484

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.

Resona Holdings has a M-score of -2.04 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 -1.92 mean?
Resona Holdings (FRA:DW1) has a Beneish M-Score of -1.92 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Resona Holdings and its competitors. According to the industry distribution chart, Resona Holdings ranks #1288 out of 1396 companies in the Banks industry, placing it in the top 92.3%.
Is Resona Holdings' Beneish M-Score too high?
Resona Holdings' current Beneish M-Score is -1.92. Based on the distribution chart, Resona Holdings ranks #1288 out of 1396 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Resona Holdings has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Resona Holdings' Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Resona Holdings ranks #1288 out of 1396 companies for Beneish M-Score. This places Resona Holdings 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 a Banks company?
A good Beneish M-Score depends on the Banks 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 Resona Holdings and its competitors. Resona Holdings's current Beneish M-Score is -1.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resona Holdings stock overvalued right now?
Based on GuruFocus' analysis, Resona Holdings (FRA:DW1) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.46, compared to a current price of €11.50 — trading 54.2% above its estimated fair value. The current Beneish M-Score is -1.92. Resona Holdings' overall GF Score™ is 65/100 with 6 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 Resona Holdings (FRA:DW1), the current Beneish M-Score is -1.92 as of Jun. 25, 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 Resona Holdings (FRA:DW1) Overvalued in 2026?

Based on GuruFocus' analysis, Resona Holdings stock appears to be overvalued. The current stock price of €11.50 is trading 54.2% above its estimated GF Value™ of €7.46. GuruFocus considers Resona Holdings to be Significantly Overvalued.

Key valuation signals for FRA:DW1:

  • Beneish M-Score: -1.92
  • GF Value™: €7.46 vs. price of €11.50 (54.2% above fair value)
  • GF Score™: 65/100 with 6 warning signs

No single metric tells the full story. See the FRA:DW1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Resona Holdings Business Description

Address 1-5-65 Kiba, Fukagawa Gatharia W2 Building, Koto-ku, Tokyo, JPN, 135-8582
Resona Holdings is one of the top six Japanese banking groups by assets. Although its banking units are categorized in Japan as "city" banks for historical reasons, it is only around a third of the size of the three megabank groups and effectively a superregional bank operating mainly in the Kansai region (54% of its branches) and the Tokyo metropolitan area (43% of branches), with a strong focus on retail and small and medium-size enterprises, rather than lending to large corporates.
65GF Score

Get the complete analysis for FRA:DW1

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

€11.50
Price
€7.46
GF Value