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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Nippon Kayaku Co's Beneish M-Score or its related term are showing as below:
FRA:NP7'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.56 Max: -2.35
Current: -2.48
During the past 13 years, the highest Beneish M-Score of Nippon Kayaku Co was -2.35. The lowest was -2.82. And the median was -2.56.
Nippon Kayaku Co Beneish M-Score Related Terms
Nippon Kayaku Co Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Nippon Kayaku Co's Beneish M-Score can be seen below:
* 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.
For the Chemicals subindustry, Nippon Kayaku Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nippon Kayaku Co Beneish M-Score vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku Co's Beneish M-Score falls into.
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 Nippon Kayaku 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 * 0.9674
+
0.528 * 1.0657
+
0.404 * 0.9376
+
0.892 * 0.9544
+
0.115 * 0.9898
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9085
+
4.679 * -0.01039
-
0.327 * 1.0699
=
-2.60
* 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.
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.
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))
=
(87.357 / (87.357 + 678.384))
/
(85.904 / (85.904 + 659.401))
=
0.114082
/
0.11526
=
0.9898
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
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
=
(134.321 - 0
-
156.905)
/
2173.562
=
-0.01039
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.
Nippon Kayaku Co has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.
Nippon Kayaku Co (FRA:NP7) has a Beneish M-Score of -2.48 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Nippon Kayaku Co and its competitors. According to the industry distribution chart, Nippon Kayaku Co ranks #802 out of 1529 companies in the Chemicals industry, placing it in the top 52.5%.
Is Nippon Kayaku Co's Beneish M-Score too high?
Nippon Kayaku Co's current Beneish M-Score is -2.48. Based on the distribution chart, Nippon Kayaku Co ranks #802 out of 1529 companies in the Chemicals industry, which is below the industry midpoint. Overall, Nippon Kayaku Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Beneish M-Score compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #802 out of 1529 companies for Beneish M-Score. This places Nippon Kayaku Co 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 Chemicals company?
A good Beneish M-Score depends on the Chemicals 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 Nippon Kayaku Co and its competitors. Nippon Kayaku Co's current Beneish M-Score is -2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kayaku Co (FRA:NP7) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.08, compared to a current price of €11.00 — trading 21.1% above its estimated fair value. The current Beneish M-Score is -2.48. Nippon Kayaku Co's overall GF Score™ is 84/100 with 7 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 Nippon Kayaku Co (FRA:NP7), the current Beneish M-Score is -2.48 as of Jun. 24, 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 Nippon Kayaku Co (FRA:NP7) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued.
The current stock price of €11.00 is trading 21.1% above its estimated GF Value™ of €9.08.
GuruFocus considers Nippon Kayaku Co to be Modestly Overvalued.
Key valuation signals for FRA:NP7:
Beneish M-Score: -2.48
GF Value™: €9.08 vs. price of €11.00 (21.1% above fair value)
No single metric tells the full story. See the FRA:NP7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
84GF Score
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