SMPNY (Sompo Holdings) Beneish M-Score: -2.67 (As of Jun. 25, 2026)


SMPNY Sompo Holdings Inc SMPNY
81 GF Score
Price $18.81
GF Value $11.49
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Sompo Holdings Beneish M-Score?

Sompo Holdings SMPNY -1.10% 81 Beneish M-Score is -2.67 as of Jun. 25, 2026. GuruFocus rates SMPNY with a GF Score™ of 81/100 and a GF Value™ of $11.49 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 397 Insurance companies, Sompo Holdings ranks better than 69.52% 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SMPNY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.59   Max: -2.23
Current: -2.67

During the past 13 years, the highest Beneish M-Score of Sompo Holdings was -2.23. The lowest was -3.17. And the median was -2.59.

SMPNY
81GF Score
Sompo Holdings Inc SMPNY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Sompo 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 Sompo 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 * 1.0044+0.892 * 0.8421+0.115 * 1.0043
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7183+4.679 * -0.036766-0.327 * 0.9205
=-2.72

* 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 $33,105 Mil.
Gross Profit was $33,105 Mil.
Total Current Assets was $0 Mil.
Total Assets was $117,238 Mil.
Property, Plant and Equipment(Net PPE) was $4,074 Mil.
Depreciation, Depletion and Amortization(DDA) was $676 Mil.
Selling, General, & Admin. Expense(SGA) was $576 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $4,695 Mil.
Net Income was $1,532 Mil.
Gross Profit was $1,391 Mil.
Cash Flow from Operations was $4,452 Mil.
 Total Receivables was $0 Mil.
Revenue was $39,311 Mil.
Gross Profit was $39,311 Mil.
Total Current Assets was $0 Mil.
Total Assets was $106,603 Mil.
Property, Plant and Equipment(Net PPE) was $4,158 Mil.
Depreciation, Depletion and Amortization(DDA) was $693 Mil.
Selling, General, & Admin. Expense(SGA) was $952 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $4,637 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 / 33104.711) / (0 / 39310.629)
=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)
=(39310.629 / 39310.629) / (33104.711 / 33104.711)
=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 + 4074.471) / 117238.388) / (1 - (0 + 4157.916) / 106603.347)
=0.965246 / 0.960996
=1.0044

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
=33104.711 / 39310.629
=0.8421

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))
=(693.443 / (693.443 + 4157.916)) / (676.104 / (676.104 + 4074.471))
=0.142938 / 0.14232
=1.0043

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)
=(575.929 / 33104.711) / (952.088 / 39310.629)
=0.017397 / 0.02422
=0.7183

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)
=((4694.563 + 0) / 117238.388) / ((4637.14 + 0) / 106603.347)
=0.040043 / 0.043499
=0.9205

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
=(1532.19 - 1390.757 - 4451.771) / 117238.388
=-0.036766

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.

Sompo Holdings has a M-score of -2.72 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 -2.67 mean?
Sompo Holdings (SMPNY) has a Beneish M-Score of -2.67 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sompo Holdings and its competitors. According to the industry distribution chart, Sompo Holdings ranks #121 out of 397 companies in the Insurance industry, placing it in the top 30.5%.
Is Sompo Holdings' Beneish M-Score too high?
Sompo Holdings' current Beneish M-Score is -2.67. Based on the distribution chart, Sompo Holdings ranks #121 out of 397 companies in the Insurance industry, which is above the industry midpoint. Overall, Sompo Holdings has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sompo Holdings' Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Sompo Holdings ranks #121 out of 397 companies for Beneish M-Score. This puts Sompo Holdings 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 Sompo Holdings and its competitors. Sompo Holdings's current Beneish M-Score is -2.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sompo Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sompo Holdings (SMPNY) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.49, compared to a current price of $18.81 — trading 63.7% above its estimated fair value. The current Beneish M-Score is -2.67. Sompo Holdings' overall GF Score™ is 81/100 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 Sompo Holdings (SMPNY), the current Beneish M-Score is -2.67 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 Sompo Holdings (SMPNY) Overvalued in 2026?

Based on GuruFocus' analysis, Sompo Holdings stock appears to be overvalued. The current stock price of $18.81 is trading 63.7% above its estimated GF Value™ of $11.49. GuruFocus considers Sompo Holdings to be Significantly Overvalued.

Key valuation signals for SMPNY:

  • Beneish M-Score: -2.67
  • GF Value™: $11.49 vs. price of $18.81 (63.7% above fair value)
  • GF Score™: 81/100 with 6 warning signs

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

Sompo Holdings Business Description

Address 26-1, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, JPN, 160-8338
Sompo Holdings was formed in 2010 through the merger of Sompo Japan and Nipponkoa Insurance. The Sompo brand—meaning "nonlife insurance" in Japanese—dates to 2001, when Yasuda Fire, Nissan Fire, and Taisei Fire combined. Today, Sompo maintains a formidable position in its home market, holding an approximate 28% share of domestic nonlife insurance premiums in Japan, operating in a consolidated oligopoly alongside larger rivals Tokio Marine and MS&AD. Following record-high profitability in fiscal 2025 and the transformative acquisition of Aspen Insurance, the group is aggressively expanding its global footprint, with overseas business and reinsurance now functioning as its primary profit engines, contributing over half of the group's adjusted consolidated profit.
81GF Score

Get the complete analysis for SMPNY

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

$18.81
Price
$11.49
GF Value