Sumitomo Chemical Co (STU:SMM) Beneish M-Score : -3.12 (As of Apr. 02, 2025)

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What is Sumitomo Chemical 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 -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:SMM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15 Med: -2.55 Max: -2.13
Current: -3.12

During the past 13 years, the highest Beneish M-Score of Sumitomo Chemical Co was -2.13. The lowest was -3.15. And the median was -2.55.

Sumitomo Chemical Co Beneish M-Score Historical Data

The historical data trend for Sumitomo Chemical 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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Sumitomo Chemical Co Beneish M-Score Chart

Sumitomo Chemical Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.50

-2.80

-2.34

-2.76

-2.59

Sumitomo Chemical Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.51	-2.59	-2.77	-3.15	-3.12

Competitive Comparison of Sumitomo Chemical Co's Beneish M-Score

For the Chemicals subindustry, Sumitomo Chemical 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.

Sumitomo Chemical Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's Beneish M-Score distribution charts can be found below:

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

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Sumitomo Chemical 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 Sumitomo Chemical 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 * 1.0008

0.528 * 0.9084

0.404 * 0.8299

0.892 * 0.9738

0.115 * 1.0853

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0309

4.679 * -0.106502

0.327 * 1.0719

-3.14

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €3,532 Mil.
Revenue was 4119.144 + 3965.997 + 3602.444 + 3930.233 = €15,618 Mil.
Gross Profit was 1164.799 + 1124.022 + 1011.26 + 531.612 = €3,832 Mil.
Total Current Assets was €10,715 Mil.
Total Assets was €23,218 Mil.
Property, Plant and Equipment(Net PPE) was €4,946 Mil.
Depreciation, Depletion and Amortization(DDA) was €856 Mil.
Selling, General, & Admin. Expense(SGA) was €4,994 Mil.
Total Current Liabilities was €8,665 Mil.
Long-Term Debt & Capital Lease Obligation was €5,613 Mil.
Net Income was 217.978 + -194.817 + 143.493 + -1240.802 = €-1,074 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 479.281 + 477.772 + -72.138 + 513.656 = €1,399 Mil.

Total Receivables was €3,624 Mil.
Revenue was 3948.664 + 3953.038 + 3677.051 + 4459.787 = €16,039 Mil.
Gross Profit was 998.862 + 805.885 + 843.169 + 926.416 = €3,574 Mil.
Total Current Assets was €10,887 Mil.
Total Assets was €26,874 Mil.
Property, Plant and Equipment(Net PPE) was €5,448 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,038 Mil.
Selling, General, & Admin. Expense(SGA) was €4,975 Mil.
Total Current Liabilities was €9,069 Mil.
Long-Term Debt & Capital Lease Obligation was €6,348 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)
	=	(3532.01 / 15617.818)	/	(3624.399 / 16038.54)
	=	0.226153	/	0.225981
	=	1.0008

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)
	=	(3574.332 / 16038.54)	/	(3831.693 / 15617.818)
	=	0.222859	/	0.245341
	=	0.9084

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 - (10714.576 + 4946.254) / 23217.611)	/	(1 - (10887.125 + 5447.998) / 26874.425)
	=	0.325476	/	0.392168
	=	0.8299

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
	=	15617.818	/	16038.54
	=	0.9738

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))
	=	(1038.365 / (1038.365 + 5447.998))	/	(855.775 / (855.775 + 4946.254))
	=	0.160084	/	0.147496
	=	1.0853

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)
	=	(4994.106 / 15617.818)	/	(4974.986 / 16038.54)
	=	0.31977	/	0.310189
	=	1.0309

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)
	=	((5613.363 + 8664.857) / 23217.611)	/	((6348.296 + 9069.486) / 26874.425)
	=	0.614974	/	0.573697
	=	1.0719

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
	=	(-1074.148 - 0	-	1398.571)	/	23217.611
	=	-0.106502

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.

Sumitomo Chemical Co has a M-score of -3.14 suggests that the company is unlikely to be a manipulator.

Sumitomo Chemical Co Beneish M-Score Related Terms

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Sumitomo Chemical Co Business Description

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SOMMY:USA 4005:Japan

Address

27-1, Shinkawa 2-chome, Chuo-ku, Tokyo, JPN, 104-8260

Website

http://www.sumitomo-chem.co.jp

Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.