Digital Arts (TSE:2326) Beneish M-Score: -3.43 (As of Jul. 01, 2026)


TSE:2326 Digital Arts Inc TSE:2326
79 GF Score
Price 円3,705.00
GF Value 円6,219.31
Valuation Significantly Undervalued
View Full Analysis

What is Digital Arts Beneish M-Score?

Digital Arts TSE:2326 +0.27% 79 Beneish M-Score is -3.43 as of Jul. 01, 2026. GuruFocus rates TSE:2326 with a GF Score™ of 79/100 and a GF Value™ of 円6,219.31 (Significantly Undervalued). Among 2,630 Software companies, Digital Arts ranks better than 86.81% 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 -3.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:2326' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Med: -3.03   Max: -2.1
Current: -3.43

During the past 13 years, the highest Beneish M-Score of Digital Arts was -2.10. The lowest was -3.52. And the median was -3.03.

Digital Arts Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Digital Arts'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.

Digital Arts Beneish M-Score Chart

Digital Arts Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.35 -2.20 -2.10 -2.43 -3.43

Digital Arts 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.43 0.00 0.00 0.00 -3.43

TSE:2326 vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Digital Arts'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.

Digital Arts Beneish M-Score vs Software Industry

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

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


TSE:2326
79GF Score
Digital Arts Inc TSE:2326
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Digital Arts 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 Digital Arts 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 * 0.9883+0.528 * 1.0179+0.404 * 0.8987+0.892 * 1.0855+0.115 * 1.0097
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.177786-0.327 * 1.4588
=-3.43

* 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1,548 Mil.
Revenue was 円10,835 Mil.
Gross Profit was 円7,500 Mil.
Total Current Assets was 円25,080 Mil.
Total Assets was 円27,865 Mil.
Property, Plant and Equipment(Net PPE) was 円265 Mil.
Depreciation, Depletion and Amortization(DDA) was 円974 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円9,358 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円3,427 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円8,381 Mil.
 Total Receivables was 円1,443 Mil.
Revenue was 円9,982 Mil.
Gross Profit was 円7,033 Mil.
Total Current Assets was 円20,112 Mil.
Total Assets was 円22,627 Mil.
Property, Plant and Equipment(Net PPE) was 円238 Mil.
Depreciation, Depletion and Amortization(DDA) was 円916 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円5,209 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 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)
=(1548 / 10835) / (1443 / 9982)
=0.14287 / 0.14456
=0.9883

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)
=(7033 / 9982) / (7500 / 10835)
=0.704568 / 0.692201
=1.0179

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 - (25080 + 265) / 27865) / (1 - (20112 + 238) / 22627)
=0.090436 / 0.100632
=0.8987

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
=10835 / 9982
=1.0855

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))
=(916 / (916 + 238)) / (974 / (974 + 265))
=0.793761 / 0.786118
=1.0097

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)
=(0 / 10835) / (0 / 9982)
=0 / 0
=1

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)
=((0 + 9358) / 27865) / ((0 + 5209) / 22627)
=0.335833 / 0.230212
=1.4588

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
=(3427 - 0 - 8381) / 27865
=-0.177786

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.

Digital Arts has a M-score of -3.43 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 -3.43 mean?
Digital Arts (TSE:2326) has a Beneish M-Score of -3.43 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Digital Arts and its competitors. According to the industry distribution chart, Digital Arts ranks #347 out of 2630 companies in the Software industry, placing it in the top 13.2%.
Is Digital Arts' Beneish M-Score too high?
Digital Arts' current Beneish M-Score is -3.43. Based on the distribution chart, Digital Arts ranks #347 out of 2630 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Arts has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' Beneish M-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #347 out of 2630 companies for Beneish M-Score. This places Digital Arts in the top 13% of its industry — outperforming the majority of peers. 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 Digital Arts and its competitors. Digital Arts's current Beneish M-Score is -3.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,219.31, compared to a current price of 円3,705.00 — trading 40.4% below its estimated fair value. The current Beneish M-Score is -3.43. Digital Arts' overall GF Score™ is 79/100. 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 Digital Arts (TSE:2326), the current Beneish M-Score is -3.43 as of Jul. 01, 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 Digital Arts (TSE:2326) Overvalued in 2026?

Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued. The current stock price of 円3,705.00 is trading 40.4% below its estimated GF Value™ of 円6,219.31. GuruFocus considers Digital Arts to be Significantly Undervalued.

Key valuation signals for TSE:2326:

  • Beneish M-Score: -3.43
  • GF Value™: 円6,219.31 vs. price of 円3,705.00 (40.4% below fair value)
  • GF Score™: 79/100

No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Digital Arts Business Description

Address Otemachi First Square, West tower 14 Floor, 1-5-1,Otemachi, Chiyoda, JPN, 100-0014
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
79GF Score

Get the complete analysis for TSE:2326

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

円3,705.00
Price
円6,219.31
GF Value