Howa Bank (FSE:8559) Beneish M-Score: -2.28 (As of Jun. 26, 2026)


FSE:8559 Howa Bank Ltd FSE:8559
54 GF Score
Price 円469.00
GF Value 円529.92
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Howa Bank Beneish M-Score?

Howa Bank FSE:8559 +0.22% 54 Beneish M-Score is -2.28 as of Jun. 26, 2026. GuruFocus rates FSE:8559 with a GF Score™ of 54/100 and a GF Value™ of 円529.92 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,397 Banks companies, Howa Bank ranks worse than 69.94% 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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FSE:8559' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.5   Max: -1.97
Current: -2.28

During the past 13 years, the highest Beneish M-Score of Howa Bank was -1.97. The lowest was -3.15. And the median was -2.50.

FSE:8559
54GF Score
Howa Bank Ltd FSE:8559
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Howa Bank 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 Howa Bank 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 * 1.0811+0.115 * 1.1315
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9585+4.679 * 0.011061-0.327 * 0.8285
=-2.28

* 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 円0 Mil.
Revenue was 円9,155 Mil.
Gross Profit was 円9,155 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円596,133 Mil.
Property, Plant and Equipment(Net PPE) was 円5,992 Mil.
Depreciation, Depletion and Amortization(DDA) was 円324 Mil.
Selling, General, & Admin. Expense(SGA) was 円6,825 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円118 Mil.
Net Income was 円819 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-5,775 Mil.
 Total Receivables was 円0 Mil.
Revenue was 円8,468 Mil.
Gross Profit was 円8,468 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円599,499 Mil.
Property, Plant and Equipment(Net PPE) was 円6,053 Mil.
Depreciation, Depletion and Amortization(DDA) was 円373 Mil.
Selling, General, & Admin. Expense(SGA) was 円6,586 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円143 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 / 9155) / (0 / 8468)
=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)
=(8468 / 8468) / (9155 / 9155)
=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 + 5992) / 596133) / (1 - (0 + 6053) / 599499)
=0.989949 / 0.989903
=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
=9155 / 8468
=1.0811

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))
=(373 / (373 + 6053)) / (324 / (324 + 5992))
=0.058045 / 0.051298
=1.1315

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)
=(6825 / 9155) / (6586 / 8468)
=0.745494 / 0.777752
=0.9585

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)
=((118 + 0) / 596133) / ((143 + 0) / 599499)
=0.000198 / 0.000239
=0.8285

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
=(819 - 0 - -5775) / 596133
=0.011061

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.

Howa Bank has a M-score of -2.28 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 -2.28 mean?
Howa Bank (FSE:8559) has a Beneish M-Score of -2.28 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Howa Bank and its competitors. According to the industry distribution chart, Howa Bank ranks #977 out of 1397 companies in the Banks industry, placing it in the top 69.9%.
Is Howa Bank's Beneish M-Score too high?
Howa Bank's current Beneish M-Score is -2.28. Based on the distribution chart, Howa Bank ranks #977 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Howa Bank has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Howa Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Howa Bank ranks #977 out of 1397 companies for Beneish M-Score. This places Howa Bank 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 Howa Bank and its competitors. Howa Bank's current Beneish M-Score is -2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howa Bank stock overvalued right now?
Based on GuruFocus' analysis, Howa Bank (FSE:8559) is currently considered Modestly Undervalued. The stock's GF Value™ is 円529.92, compared to a current price of 円469.00 — trading 11.5% below its estimated fair value. The current Beneish M-Score is -2.28. Howa Bank's overall GF Score™ is 54/100 with 2 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 Howa Bank (FSE:8559), the current Beneish M-Score is -2.28 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 Howa Bank (FSE:8559) Overvalued in 2026?

Based on GuruFocus' analysis, Howa Bank stock appears to be undervalued. The current stock price of 円469.00 is trading 11.5% below its estimated GF Value™ of 円529.92. GuruFocus considers Howa Bank to be Modestly Undervalued.

Key valuation signals for FSE:8559:

  • Beneish M-Score: -2.28
  • GF Value™: 円529.92 vs. price of 円469.00 (11.5% below fair value)
  • GF Score™: 54/100 with 2 warning signs

No single metric tells the full story. See the FSE:8559 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Howa Bank Business Description

Address 4-10 Oji Nakamachi, Oita, JPN, 870-8686
Howa Bank Ltd is a Japan based regional bank. It provides banking products and services in Japan. Its deposit products include general account, saving account, current account, and property accumulation housing savings deposit. It offers housing loan, reform loan, card loan, free loan, education loan, auto loans and also provides insurance services.
54GF Score

Get the complete analysis for FSE:8559

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

円469.00
Price
円529.92
GF Value