Shiseido Co (STU:SHD) Beneish M-Score : -2.76 (As of Dec. 15, 2024)

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What is Shiseido Co Beneish M-Score?

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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:SHD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04 Med: -2.3 Max: -1.94
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Shiseido Co was -1.94. The lowest was -3.04. And the median was -2.30.

Shiseido Co Beneish M-Score Historical Data

The historical data trend for Shiseido 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.

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Shiseido Co Beneish M-Score Chart

Shiseido Co Annual Data

Trend

Mar14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.19

-2.72

-2.74

-2.30

-2.87

Shiseido Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.01	-2.87	-2.70	-2.76	-

Competitive Comparison of Shiseido Co's Beneish M-Score

For the Household & Personal Products subindustry, Shiseido 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.

Shiseido Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Shiseido Co's Beneish M-Score distribution charts can be found below:

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

Shiseido 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 Shiseido Co 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 * 1.0229

0.528 * 0.9383

0.404 * 1.1528

0.892 * 0.8279

0.115 * 0.9369

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.121

4.679 * -0.05193

0.327 * 0.9931

-2.85

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was €913 Mil.
Revenue was 1524.693 + 1531.831 + 1596.174 + 1446.445 = €6,099 Mil.
Gross Profit was 1164.81 + 1151.491 + 1198.253 + 1061.954 = €4,577 Mil.
Total Current Assets was €2,838 Mil.
Total Assets was €7,945 Mil.
Property, Plant and Equipment(Net PPE) was €2,348 Mil.
Depreciation, Depletion and Amortization(DDA) was €474 Mil.
Selling, General, & Admin. Expense(SGA) was €4,623 Mil.
Total Current Liabilities was €2,473 Mil.
Long-Term Debt & Capital Lease Obligation was €1,124 Mil.
Net Income was 19.426 + -20.179 + 7.846 + 55.537 = €63 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 165.097 + 21.843 + 177.793 + 110.479 = €475 Mil.

Total Receivables was €1,078 Mil.
Revenue was 1659.666 + 1677.1 + 2131.373 + 1898.578 = €7,367 Mil.
Gross Profit was 1235.208 + 1177.329 + 1538.355 + 1235.831 = €5,187 Mil.
Total Current Assets was €3,055 Mil.
Total Assets was €8,289 Mil.
Property, Plant and Equipment(Net PPE) was €2,737 Mil.
Depreciation, Depletion and Amortization(DDA) was €511 Mil.
Selling, General, & Admin. Expense(SGA) was €4,981 Mil.
Total Current Liabilities was €2,393 Mil.
Long-Term Debt & Capital Lease Obligation was €1,386 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)
	=	(912.858 / 6099.143)	/	(1077.899 / 7366.717)
	=	0.14967	/	0.14632
	=	1.0229

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)
	=	(5186.723 / 7366.717)	/	(4576.508 / 6099.143)
	=	0.704075	/	0.750353
	=	0.9383

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 - (2837.911 + 2348.364) / 7944.933)	/	(1 - (3055.37 + 2737.049) / 8289.169)
	=	0.347222	/	0.301206
	=	1.1528

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
	=	6099.143	/	7366.717
	=	0.8279

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))
	=	(511.055 / (511.055 + 2737.049))	/	(473.966 / (473.966 + 2348.364))
	=	0.157339	/	0.167934
	=	0.9369

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)
	=	(4623.182 / 6099.143)	/	(4981.338 / 7366.717)
	=	0.758005	/	0.676195
	=	1.121

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)
	=	((1123.651 + 2473.279) / 7944.933)	/	((1386.112 + 2392.787) / 8289.169)
	=	0.452733	/	0.455884
	=	0.9931

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
	=	(62.63 - 0	-	475.212)	/	7944.933
	=	-0.05193

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.

Shiseido Co has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.

Shiseido Co Beneish M-Score Related Terms

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Shiseido Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Shiseido Co Ltd (STU:SHD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SSDOY:USA SSDOF:USA 4911:Japan SHD:Germany

Address

5-5 Ginza 7-chome, Chuo-ku, Tokyo, JPN, 104-0061

Website

http://www.shiseido.co.jp

Shiseido is a leading Japanese cosmetics manufacturer. Founded in 1872, the first Western-style pharmacy in Ginza, Tokyo, it is one of the oldest cosmetics companies globally. Shiseido's suite of 31 brands, including its namesake brand and luxury Clé de Peau Beauté, has an 9.3% share of Japan's beauty and personal care market and 18.3% share of Japan's premium segment according to Euromonitor. It is also ranked No. 3 after Estée Lauder and L'Oréal, with 7.6% market share in the global premium skincare space, thanks to a strong presence in China. China, Japan, and western markets each account for about 25% of sales, followed by 15% of travel retail, and 6% in Asia. Its distribution channels include department stores, drugstores, specialty retailers, travel retailers, and e-commerce.

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