Software Service (TSE:3733) Beneish M-Score: -1.36 (As of Jun. 25, 2026)


TSE:3733 Software Service Inc TSE:3733
91 GF Score
Price 円10,250.00
GF Value 円12,438.94
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Software Service Beneish M-Score?

Software Service TSE:3733 +3.02% 91 Beneish M-Score is -1.36 as of Jun. 25, 2026. GuruFocus rates TSE:3733 with a GF Score™ of 91/100 and a GF Value™ of 円12,438.94 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 632 Healthcare Providers & Services companies, Software Service ranks worse than 89.4% 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.

Warning Sign:

Beneish M-Score -1.36 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSE:3733' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Med: -2.38   Max: -1.36
Current: -1.36

During the past 13 years, the highest Beneish M-Score of Software Service was -1.36. The lowest was -2.92. And the median was -2.38.

Software Service Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Software Service'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.

Software Service Beneish M-Score Chart

Software Service Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.35 -2.33 -2.76 -2.60 -1.36

Software Service Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
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 0.00 0.00 -1.36 0.00 0.00

TSE:3733 vs VEEV, BTSG, TEM: Beneish M-Score Comparison

For the Health Information Services subindustry, Software Service'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.

Software Service Beneish M-Score vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Software Service's Beneish M-Score distribution charts can be found below:

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


TSE:3733
91GF Score
Software Service Inc TSE:3733
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Software Service 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 Software Service 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 * 1.8845+0.528 * 0.9704+0.404 * 1.0353+0.892 * 1.1008+0.115 * 0.7317
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.05553-0.327 * 1.0491
=-1.36

* 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 (Oct25) TTM:Last Year (Oct24) TTM:
Total Receivables was 円9,750 Mil.
Revenue was 円42,298 Mil.
Gross Profit was 円11,329 Mil.
Total Current Assets was 円32,639 Mil.
Total Assets was 円52,188 Mil.
Property, Plant and Equipment(Net PPE) was 円18,124 Mil.
Depreciation, Depletion and Amortization(DDA) was 円879 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円10,240 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円6,112 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円3,214 Mil.
 Total Receivables was 円4,700 Mil.
Revenue was 円38,425 Mil.
Gross Profit was 円9,987 Mil.
Total Current Assets was 円25,126 Mil.
Total Assets was 円44,893 Mil.
Property, Plant and Equipment(Net PPE) was 円18,583 Mil.
Depreciation, Depletion and Amortization(DDA) was 円651 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円8,396 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)
=(9750 / 42298) / (4700 / 38425)
=0.230507 / 0.122316
=1.8845

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)
=(9987 / 38425) / (11329 / 42298)
=0.259909 / 0.267838
=0.9704

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 - (32639 + 18124) / 52188) / (1 - (25126 + 18583) / 44893)
=0.027305 / 0.026374
=1.0353

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
=42298 / 38425
=1.1008

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))
=(651 / (651 + 18583)) / (879 / (879 + 18124))
=0.033846 / 0.046256
=0.7317

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 / 42298) / (0 / 38425)
=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 + 10240) / 52188) / ((0 + 8396) / 44893)
=0.196214 / 0.187022
=1.0491

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
=(6112 - 0 - 3214) / 52188
=0.05553

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.

Software Service has a M-score of -1.36 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.36 mean?
Software Service (TSE:3733) has a Beneish M-Score of -1.36 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Software Service and its competitors. According to the industry distribution chart, Software Service ranks #565 out of 632 companies in the Healthcare Providers & Services industry, placing it in the top 89.4%.
Is Software Service's Beneish M-Score too high?
Software Service's current Beneish M-Score is -1.36. Based on the distribution chart, Software Service ranks #565 out of 632 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Software Service has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Software Service's Beneish M-Score compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Software Service ranks #565 out of 632 companies for Beneish M-Score. This places Software Service in the lower half of its industry. 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 Healthcare Providers & Services company?
A good Beneish M-Score depends on the Healthcare Providers & Services 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 Software Service and its competitors. Software Service's current Beneish M-Score is -1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Software Service stock overvalued right now?
Based on GuruFocus' analysis, Software Service (TSE:3733) is currently considered Modestly Undervalued. The stock's GF Value™ is 円12,438.94, compared to a current price of 円10,250.00 — trading 17.6% below its estimated fair value. The current Beneish M-Score is -1.36. Software Service's overall GF Score™ is 91/100 with 2 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 Software Service (TSE:3733), the current Beneish M-Score is -1.36 as of Jun. 25, 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 Software Service (TSE:3733) Overvalued in 2026?

Based on GuruFocus' analysis, Software Service stock appears to be undervalued. The current stock price of 円10,250.00 is trading 17.6% below its estimated GF Value™ of 円12,438.94. GuruFocus considers Software Service to be Modestly Undervalued.

Key valuation signals for TSE:3733:

  • Beneish M-Score: -1.36
  • GF Value™: 円12,438.94 vs. price of 円10,250.00 (17.6% below fair value)
  • GF Score™: 91/100 with 2 warning signs

No single metric tells the full story. See the TSE:3733 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Software Service Business Description

Address 4-2-30, Miyahara, Osaka, JPN
Software Service Inc installs, develops and sells Electric Medical Record System, Hospital Total Ordering System, and nursing support system. The product line includes - Anesthesia recording system, Dialysis management system, Infection control system, Bacterial test system, Personnel payroll system, Visiting system for nursing, In-home medical care, Office-based care system, Hospital entrance care system, among others.
91GF Score

Get the complete analysis for TSE:3733

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

円10,250.00
Price
円12,438.94
GF Value