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Kanemi Co (TSE:2669) Beneish M-Score : -2.58 (As of Mar. 31, 2025)


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

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

TSE:2669' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.5   Max: -1.51
Current: -2.58

During the past 13 years, the highest Beneish M-Score of Kanemi Co was -1.51. The lowest was -3.15. And the median was -2.50.


Kanemi Co Beneish M-Score Historical Data

The historical data trend for Kanemi 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.

* Premium members only.

Kanemi Co Beneish M-Score Chart

Kanemi Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Feb20 Feb21 Feb22 Feb23 Feb24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.15 -2.63 -2.89 -2.59 -2.58

Kanemi Co Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 - - -2.58 - -

Competitive Comparison of Kanemi Co's Beneish M-Score

For the Packaged Foods subindustry, Kanemi 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.


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

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

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


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Kanemi 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 Kanemi Co 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 * 1.0469+0.528 * 0.9623+0.404 * 1.0101+0.892 * 1.0746+0.115 * 0.9908
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0227+4.679 * -0.035992-0.327 * 1.0481
=-2.58

* 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 (Feb24) TTM:Last Year (Feb23) TTM:
Total Receivables was 円5,940 Mil.
Revenue was 円87,108 Mil.
Gross Profit was 円14,924 Mil.
Total Current Assets was 円25,125 Mil.
Total Assets was 円35,938 Mil.
Property, Plant and Equipment(Net PPE) was 円9,076 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,006 Mil.
Selling, General, & Admin. Expense(SGA) was 円5,187 Mil.
Total Current Liabilities was 円8,075 Mil.
Long-Term Debt & Capital Lease Obligation was 円17 Mil.
Net Income was 円1,855 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円3,148 Mil.
Total Receivables was 円5,280 Mil.
Revenue was 円81,059 Mil.
Gross Profit was 円13,365 Mil.
Total Current Assets was 円22,888 Mil.
Total Assets was 円33,406 Mil.
Property, Plant and Equipment(Net PPE) was 円8,919 Mil.
Depreciation, Depletion and Amortization(DDA) was 円979 Mil.
Selling, General, & Admin. Expense(SGA) was 円4,719 Mil.
Total Current Liabilities was 円7,165 Mil.
Long-Term Debt & Capital Lease Obligation was 円12 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)
=(5940.167 / 87107.882) / (5280.03 / 81059.326)
=0.068193 / 0.065138
=1.0469

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)
=(13364.833 / 81059.326) / (14924.428 / 87107.882)
=0.164877 / 0.171333
=0.9623

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 - (25125.058 + 9076.315) / 35938.486) / (1 - (22887.977 + 8919.43) / 33406.05)
=0.048336 / 0.047855
=1.0101

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
=87107.882 / 81059.326
=1.0746

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))
=(978.575 / (978.575 + 8919.43)) / (1006.022 / (1006.022 + 9076.315))
=0.098866 / 0.099781
=0.9908

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)
=(5186.857 / 87107.882) / (4719.431 / 81059.326)
=0.059545 / 0.058222
=1.0227

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)
=((17.437 + 8075.222) / 35938.486) / ((12.43 + 7164.918) / 33406.05)
=0.225181 / 0.214852
=1.0481

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
=(1854.926 - 0 - 3148.42) / 35938.486
=-0.035992

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.

Kanemi Co has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.


Kanemi Co Beneish M-Score Related Terms

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Kanemi Co Business Description

Traded in Other Exchanges
N/A
Address
90 Nakatsubo, Tenpaku Nagoya, Nakatsubo, JPN, 458-0815
Kanemi Co Ltd is a Japanese based company. It is engaged in the production and retails of lunch boxes, daily dishes, and sushi dishes. It operates in two business division including tenant business and external sales business. Tenant business develops prepared dishes in various styles sold at supermarkets, department stores, station buildings, and station Naka. External sales business manufactures and ships lunch boxes, rice balls, and pasta for convenience stores. The company wholesales its products to supermarkets. Kanemi also provides management services for franchisees.

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