Japan Securities Finance Co (FRA:JSE) Beneish M-Score: -2.45 (As of Jun. 26, 2026)


FRA:JSE Japan Securities Finance Co Ltd FRA:JSE
64 GF Score
Price €12.50
GF Value €10.69
! 4 Warning Signs
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What is Japan Securities Finance Co Beneish M-Score?

Japan Securities Finance Co FRA:JSE +1.63% 64 Beneish M-Score is -2.45 as of Jun. 26, 2026. GuruFocus rates FRA:JSE with a GF Score™ of 64/100 and a GF Value™ of €10.69. The stock has 4 warning signs investors should review. Among 483 Credit Services companies, Japan Securities Finance Co ranks better than 69.57% 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:JSE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Med: -2.5   Max: -1.98
Current: -2.45

During the past 13 years, the highest Beneish M-Score of Japan Securities Finance Co was -1.98. The lowest was -3.23. And the median was -2.50.

FRA:JSE
64GF Score
Japan Securities Finance Co Ltd FRA:JSE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Japan Securities Finance 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 Japan Securities Finance 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+0.528 * 1+0.404 * 1.0001+0.892 * 0.9698+0.115 * 1.0529
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.008018-0.327 * 1.0965
=-2.57

* 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 €0.0 Mil.
Revenue was €133.3 Mil.
Gross Profit was €133.3 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €84,594.1 Mil.
Property, Plant and Equipment(Net PPE) was €29.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.5 Mil.
Selling, General, & Admin. Expense(SGA) was €0.0 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €19,731.0 Mil.
Net Income was €57.8 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €736.1 Mil.
 Total Receivables was €0.0 Mil.
Revenue was €137.5 Mil.
Gross Profit was €137.5 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €85,449.3 Mil.
Property, Plant and Equipment(Net PPE) was €34.6 Mil.
Depreciation, Depletion and Amortization(DDA) was €3.0 Mil.
Selling, General, & Admin. Expense(SGA) was €0.0 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €18,176.4 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 / 133.313) / (0 / 137.468)
=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)
=(137.468 / 137.468) / (133.313 / 133.313)
=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 + 29.834) / 84594.083) / (1 - (0 + 34.615) / 85449.315)
=0.999647 / 0.999595
=1.0001

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
=133.313 / 137.468
=0.9698

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))
=(3.016 / (3.016 + 34.615)) / (2.458 / (2.458 + 29.834))
=0.080147 / 0.076118
=1.0529

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 / 133.313) / (0 / 137.468)
=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)
=((19731.002 + 0) / 84594.083) / ((18176.394 + 0) / 85449.315)
=0.233243 / 0.212716
=1.0965

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
=(57.842 - 0 - 736.088) / 84594.083
=-0.008018

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.

Japan Securities Finance Co has a M-score of -2.57 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 -2.45 mean?
Japan Securities Finance Co (FRA:JSE) has a Beneish M-Score of -2.45 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Japan Securities Finance Co and its competitors. According to the industry distribution chart, Japan Securities Finance Co ranks #147 out of 483 companies in the Credit Services industry, placing it in the top 30.4%.
Is Japan Securities Finance Co's Beneish M-Score too high?
Japan Securities Finance Co's current Beneish M-Score is -2.45. Based on the distribution chart, Japan Securities Finance Co ranks #147 out of 483 companies in the Credit Services industry, which is above the industry midpoint. Overall, Japan Securities Finance Co has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Japan Securities Finance Co's Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, Japan Securities Finance Co ranks #147 out of 483 companies for Beneish M-Score. This puts Japan Securities Finance Co 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Japan Securities Finance Co and its competitors. Japan Securities Finance Co's current Beneish M-Score is -2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Securities Finance Co stock overvalued right now?
Japan Securities Finance Co (FRA:JSE) has a current Beneish M-Score of -2.45. The stock's GF Value™ is €10.69, compared to a current price of €12.50 — trading 16.9% above its estimated fair value. The current Beneish M-Score is -2.45. Japan Securities Finance Co's overall GF Score™ is 64/100 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 Japan Securities Finance Co (FRA:JSE), the current Beneish M-Score is -2.45 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 Japan Securities Finance Co (FRA:JSE) Overvalued in 2026?

Based on GuruFocus' analysis, Japan Securities Finance Co stock appears to be overvalued. The current stock price of €12.50 is trading 16.9% above its estimated GF Value™ of €10.69.

Key valuation signals for FRA:JSE:

  • Beneish M-Score: -2.45
  • GF Value™: €10.69 vs. price of €12.50 (16.9% above fair value)
  • GF Score™: 64/100 with 4 warning signs

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

Japan Securities Finance Co Business Description

Other Exchanges 8511:Japan
Address 1-2-10 Nihonbashi-Kayabacho, Chuo-ku, Tokyo, JPN, 103-0025
Japan Securities Finance Co Ltd operates in three business segments: Securities Finance, Trust Banking, and Real Estate Leasing. In the Securities Finance business, which makes up the vast majority of the company's total revenue, the company primarily provides loans for margin transactions where it earns revenue through fees and interest. The Securities Finance segment also earns fees through stock and bond lending and earns interest through bond financing and general loans. The Trust Banking business provides trust services, such as securities trust, and banking services, such as deposits and loans. The Real Estate Leasing business provides services for leasing and managing real estate. The company operates exclusively in Japan.
64GF Score

Get the complete analysis for FRA:JSE

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

€12.50
Price
€10.69
GF Value