Hotto Link (TSE:3680) Beneish M-Score: -3.08 (As of Jul. 11, 2026)


TSE:3680 Hotto Link Inc TSE:3680
55 GF Score
Price 円215.00
GF Value 円200.72
Valuation Fairly Valued
! 3 Warning Signs
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What is Hotto Link Beneish M-Score?

Hotto Link TSE:3680 -0.46% 55 Beneish M-Score is -3.08 as of Jul. 11, 2026. GuruFocus rates TSE:3680 with a GF Score™ of 55/100 and a GF Value™ of 円200.72 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,627 Software companies, Hotto Link ranks better than 79.41% 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 -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:3680' s Beneish M-Score Range Over the Past 10 Years
Min: -4.08   Med: -2.49   Max: -1.2
Current: -3.08

During the past 13 years, the highest Beneish M-Score of Hotto Link was -1.20. The lowest was -4.08. And the median was -2.49.

Hotto Link Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Hotto Link'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.

Hotto Link Beneish M-Score Chart

Hotto Link Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.96 -1.99 -1.37 -1.86 -1.73

Hotto Link Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 -2.50 -2.80 0.00 -1.73 -3.08

TSE:3680 vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Hotto Link'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.

Hotto Link Beneish M-Score vs Software Industry

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

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


TSE:3680
55GF Score
Hotto Link Inc TSE:3680
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hotto Link 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 Hotto Link 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 * 1.8943+0.528 * 0.7576+0.404 * 0.9436+0.892 * 0.4485+0.115 * 1.5594
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5713+4.679 * -0.091496-0.327 * 1.2967
=-2.86

* 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461 Mil.
Revenue was 996.744 + 0 + 0 + 556.421 = 円1,553 Mil.
Gross Profit was 393.947 + 0 + 0 + 220.929 = 円615 Mil.
Total Current Assets was 円2,961 Mil.
Total Assets was 円5,744 Mil.
Property, Plant and Equipment(Net PPE) was 円294 Mil.
Depreciation, Depletion and Amortization(DDA) was 円133 Mil.
Selling, General, & Admin. Expense(SGA) was 円712 Mil.
Total Current Liabilities was 円841 Mil.
Long-Term Debt & Capital Lease Obligation was 円689 Mil.
Net Income was -45.96 + 0 + 0 + -316.714 = 円-363 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 65.815 + 0 + 0 + 97.083 = 円163 Mil.
 Total Receivables was 円543 Mil.
Revenue was 1171.986 + 0 + 1119.125 + 1171.986 = 円3,463 Mil.
Gross Profit was 350.98 + 0 + 336.642 + 350.98 = 円1,039 Mil.
Total Current Assets was 円3,731 Mil.
Total Assets was 円7,537 Mil.
Property, Plant and Equipment(Net PPE) was 円345 Mil.
Depreciation, Depletion and Amortization(DDA) was 円324 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,010 Mil.
Total Current Liabilities was 円817 Mil.
Long-Term Debt & Capital Lease Obligation was 円731 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)
=(460.931 / 1553.165) / (542.537 / 3463.097)
=0.296769 / 0.156662
=1.8943

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)
=(1038.602 / 3463.097) / (614.876 / 1553.165)
=0.299906 / 0.395886
=0.7576

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 - (2960.82 + 294.475) / 5744.213) / (1 - (3731.313 + 344.955) / 7537.384)
=0.433291 / 0.459193
=0.9436

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
=1553.165 / 3463.097
=0.4485

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))
=(323.605 / (323.605 + 344.955)) / (132.551 / (132.551 + 294.475))
=0.484033 / 0.310405
=1.5594

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)
=(711.788 / 1553.165) / (1010.051 / 3463.097)
=0.458282 / 0.291661
=1.5713

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)
=((689.489 + 841.019) / 5744.213) / ((731.37 + 817.385) / 7537.384)
=0.266443 / 0.205476
=1.2967

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
=(-362.674 - 0 - 162.898) / 5744.213
=-0.091496

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.

Hotto Link has a M-score of -2.86 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 -3.08 mean?
Hotto Link (TSE:3680) has a Beneish M-Score of -3.08 as of Jul. 11, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hotto Link and its competitors. According to the industry distribution chart, Hotto Link ranks #541 out of 2627 companies in the Software industry, placing it in the top 20.6%.
Is Hotto Link's Beneish M-Score too high?
Hotto Link's current Beneish M-Score is -3.08. Based on the distribution chart, Hotto Link ranks #541 out of 2627 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Hotto Link has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hotto Link's Beneish M-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Hotto Link ranks #541 out of 2627 companies for Beneish M-Score. This places Hotto Link in the top 21% 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 Hotto Link and its competitors. Hotto Link's current Beneish M-Score is -3.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotto Link stock overvalued right now?
Based on GuruFocus' analysis, Hotto Link (TSE:3680) is currently considered Fairly Valued. The stock's GF Value™ is 円200.72, compared to a current price of 円215.00 — trading 7.1% above its estimated fair value. The current Beneish M-Score is -3.08. Hotto Link's overall GF Score™ is 55/100 with 3 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 Hotto Link (TSE:3680), the current Beneish M-Score is -3.08 as of Jul. 11, 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 Hotto Link (TSE:3680) Overvalued in 2026?

Based on GuruFocus' analysis, Hotto Link stock appears to be overvalued. The current stock price of 円215.00 is trading 7.1% above its estimated GF Value™ of 円200.72. GuruFocus considers Hotto Link to be Fairly Valued.

Key valuation signals for TSE:3680:

  • Beneish M-Score: -3.08
  • GF Value™: 円200.72 vs. price of 円215.00 (7.1% above fair value)
  • GF Score™: 55/100 with 3 warning signs

No single metric tells the full story. See the TSE:3680 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hotto Link Business Description

Address 1-3-11 Fujimi, 5th Floor, Fujimi Duplex Biz, Chiyoda-ku, Tokyo, JPN, 102-0071
Hotto Link Inc provides social big data solutions, offering SNS marketing support services mainly for domestic clients and selling SNS data access rights through its DaaS business. It also operates a Web3-related business that includes investment and research activities via Nonagon Capital, supporting startups and offering community services like Nonagon Report and Nonagon Connect.
55GF Score

Get the complete analysis for TSE:3680

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

円215.00
Price
円200.72
GF Value