NEC (NECPY) Beneish M-Score: -2.58 (As of Jun. 25, 2026)

What is NEC Beneish M-Score?

NEC NECPY -4.65% 65 Beneish M-Score is -2.58 as of Jun. 25, 2026. GuruFocus rates NECPY with a GF Score™ of 65/100 and a GF Value™ of $9.30 (Modestly Overvalued). Among 2,633 Software companies, NEC ranks better than 52.6% on this metric.

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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NECPY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8 Med: -2.52 Max: -2.4
Current: -2.58

During the past 13 years, the highest Beneish M-Score of NEC was -2.40. The lowest was -2.80. And the median was -2.52.

NEC Beneish M-Score Related Terms

NEC Beneish M-Score Historical Data

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The historical data trend for NEC'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.

NEC Beneish M-Score Chart

NEC Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.46

-2.40

-2.52

-2.70

-2.58

NEC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.70	-2.92	-2.71	-2.70	-2.58

NECPY vs IBM, ACN, FISV: Beneish M-Score Comparison

For the Information Technology Services subindustry, NEC'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.

NEC Beneish M-Score vs Software Industry

For the Software industry and Technology sector, NEC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where NEC's Beneish M-Score falls into.

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65GF Score

NEC Corp NECPY

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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NEC 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 NEC for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0267

0.528 * 0.9418

0.404 * 0.9235

0.892 * 1.0328

0.115 * 0.9537

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9941

4.679 * -0.04037

0.327 * 0.9342

-2.66

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $8,913 Mil.
Revenue was 7312.807 + 5467.967 + 5776.439 + 4953.216 = $23,510 Mil.
Gross Profit was 2643.048 + 1748.639 + 1846.731 + 1496.282 = $7,735 Mil.
Total Current Assets was $15,497 Mil.
Total Assets was $28,149 Mil.
Property, Plant and Equipment(Net PPE) was $3,555 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,020 Mil.
Selling, General, & Admin. Expense(SGA) was $5,301 Mil.
Total Current Liabilities was $9,856 Mil.
Long-Term Debt & Capital Lease Obligation was $2,413 Mil.
Net Income was 806.326 + 445.422 + 361.957 + 133.648 = $1,747 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1715.719 + -71.783 + -511.724 + 1751.515 = $2,884 Mil.

Total Receivables was $8,406 Mil.
Revenue was 7390.579 + 5429.489 + 5570.883 + 4372.837 = $22,764 Mil.
Gross Profit was 2406.271 + 1810.358 + 1631.672 + 1204.675 = $7,053 Mil.
Total Current Assets was $14,927 Mil.
Total Assets was $28,951 Mil.
Property, Plant and Equipment(Net PPE) was $3,892 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,051 Mil.
Selling, General, & Admin. Expense(SGA) was $5,163 Mil.
Total Current Liabilities was $10,958 Mil.
Long-Term Debt & Capital Lease Obligation was $2,549 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)
	=	(8913.032 / 23510.429)	/	(8405.777 / 22763.788)
	=	0.37911	/	0.369261
	=	1.0267

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)
	=	(7052.976 / 22763.788)	/	(7734.7 / 23510.429)
	=	0.309833	/	0.32899
	=	0.9418

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 - (15496.919 + 3554.666) / 28149.156)	/	(1 - (14927.075 + 3892.22) / 28951.01)
	=	0.323192	/	0.349961
	=	0.9235

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
	=	23510.429	/	22763.788
	=	1.0328

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))
	=	(1050.93 / (1050.93 + 3892.22))	/	(1019.69 / (1019.69 + 3554.666))
	=	0.212603	/	0.222914
	=	0.9537

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)
	=	(5301.044 / 23510.429)	/	(5162.885 / 22763.788)
	=	0.225476	/	0.226803
	=	0.9941

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)
	=	((2412.594 + 9856.002) / 28149.156)	/	((2549.041 + 10958.287) / 28951.01)
	=	0.435842	/	0.466558
	=	0.9342

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
	=	(1747.353 - 0	-	2883.727)	/	28149.156
	=	-0.04037

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.

NEC has a M-score of -2.66 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 -2.58 mean?

NEC (NECPY) has a Beneish M-Score of -2.58 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on NEC and its competitors. According to the industry distribution chart, NEC ranks #1248 out of 2633 companies in the Software industry, placing it in the top 47.4%.

Is NEC's Beneish M-Score too high?

NEC's current Beneish M-Score is -2.58. Based on the distribution chart, NEC ranks #1248 out of 2633 companies in the Software industry, which is above the industry midpoint. Overall, NEC has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does NEC's Beneish M-Score compare to IBM and ACN?

According to the Software industry distribution chart, NEC ranks #1248 out of 2633 companies for Beneish M-Score. This puts NEC 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 Software company?

A good Beneish M-Score depends on the Software 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 NEC and its competitors. NEC's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is NEC stock overvalued right now?

Based on GuruFocus' analysis, NEC (NECPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.30, compared to a current price of $12.10 — trading 30.1% above its estimated fair value. The current Beneish M-Score is -2.58. NEC's overall GF Score™ is 65/100. 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 NEC (NECPY), the current Beneish M-Score is -2.58 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 NEC (NECPY) Overvalued in 2026?

Based on GuruFocus' analysis, NEC stock appears to be overvalued. The current stock price of $12.10 is trading 30.1% above its estimated GF Value™ of $9.30. GuruFocus considers NEC to be Modestly Overvalued.

Key valuation signals for NECPY:

Beneish M-Score: -2.58
GF Value™: $9.30 vs. price of $12.10 (30.1% above fair value)
GF Score™: 65/100

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

NEC Business Description

Industry Technology Software

Comparable Companies TSE:6702 TSE:4307 TSE:4768 TSE:3626 TSE:2327 TSE:4733 TSE:8056 TSE:4812 TSE:3923 TSE:4373 IBM ACN NSE:TCS NSE:INFY NSE:HCLTECH FISV XMAD:AMS CTSH BOM:507685 FIS

Other Exchanges NIPNF:USA 6701:Japan NEC1:Germany NEC1:Germany NEC1:Germany

Address 7-1, Shiba 5-chome, Minato-ku, Tokyo, JPN, 108-8001

Website https://www.nec.com

NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.

65GF Score

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

$12.10

Price

$9.30

GF Value

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