SYSTEMS DESIGN Co (TSE:3766) Beneish M-Score: -2.73 (As of Jul. 13, 2026)

What is SYSTEMS DESIGN Co Beneish M-Score?

SYSTEMS DESIGN Co TSE:3766 +1.79% 71 Beneish M-Score is -2.73 as of Jul. 13, 2026. GuruFocus rates TSE:3766 with a GF Score™ of 71/100 and a GF Value™ of 円1,043.89 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,631 Software companies, SYSTEMS DESIGN Co ranks better than 63.4% 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.

Good Sign:

Beneish M-Score -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:3766' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.43 Max: -2.13
Current: -2.73

During the past 13 years, the highest Beneish M-Score of SYSTEMS DESIGN Co was -2.13. The lowest was -3.02. And the median was -2.43.

SYSTEMS DESIGN Co Beneish M-Score Related Terms

SYSTEMS DESIGN Co Beneish M-Score Historical Data

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The historical data trend for SYSTEMS DESIGN 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.

SYSTEMS DESIGN Co Beneish M-Score Chart

SYSTEMS DESIGN Co Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.33

-2.64

-2.93

-2.13

-2.73

SYSTEMS DESIGN Co Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.93	0.00	-2.13	0.00	-2.73

TSE:3766 vs IBM, ACN, FISV: Beneish M-Score Comparison

For the Information Technology Services subindustry, SYSTEMS DESIGN 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.

SYSTEMS DESIGN Co Beneish M-Score vs Software Industry

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

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

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71GF Score

SYSTEMS DESIGN Co Ltd TSE:3766

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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SYSTEMS DESIGN 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 SYSTEMS DESIGN 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 * 0.8899

0.528 * 0.9906

0.404 * 1.1417

0.892 * 1.04

0.115 * 1.1786

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.049072

0.327 * 1.0961

-2.73

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was 円1,610 Mil.
Revenue was 円9,994 Mil.
Gross Profit was 円2,255 Mil.
Total Current Assets was 円5,053 Mil.
Total Assets was 円6,882 Mil.
Property, Plant and Equipment(Net PPE) was 円315 Mil.
Depreciation, Depletion and Amortization(DDA) was 円83 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円1,431 Mil.
Long-Term Debt & Capital Lease Obligation was 円18 Mil.
Net Income was 円393 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円731 Mil.

Total Receivables was 円1,740 Mil.
Revenue was 円9,609 Mil.
Gross Profit was 円2,148 Mil.
Total Current Assets was 円4,829 Mil.
Total Assets was 円6,395 Mil.
Property, Plant and Equipment(Net PPE) was 円334 Mil.
Depreciation, Depletion and Amortization(DDA) was 円109 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円1,214 Mil.
Long-Term Debt & Capital Lease Obligation was 円14 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)
	=	(1610.143 / 9993.803)	/	(1739.71 / 9609.075)
	=	0.161114	/	0.181049
	=	0.8899

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)
	=	(2147.953 / 9609.075)	/	(2255.088 / 9993.803)
	=	0.223534	/	0.225649
	=	0.9906

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 - (5053.136 + 315.431) / 6882.433)	/	(1 - (4829.071 + 333.671) / 6394.826)
	=	0.219961	/	0.192669
	=	1.1417

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
	=	9993.803	/	9609.075
	=	1.04

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))
	=	(108.522 / (108.522 + 333.671))	/	(82.953 / (82.953 + 315.431))
	=	0.245418	/	0.208224
	=	1.1786

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 / 9993.803)	/	(0 / 9609.075)
	=	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)
	=	((17.749 + 1431.054) / 6882.433)	/	((13.664 + 1214.498) / 6394.826)
	=	0.210507	/	0.192056
	=	1.0961

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
	=	(393.126 - 0	-	730.861)	/	6882.433
	=	-0.049072

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.

SYSTEMS DESIGN Co has a M-score of -2.73 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 -2.73 mean?

SYSTEMS DESIGN Co (TSE:3766) has a Beneish M-Score of -2.73 as of Jul. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on SYSTEMS DESIGN Co and its competitors. According to the industry distribution chart, SYSTEMS DESIGN Co ranks #963 out of 2631 companies in the Software industry, placing it in the top 36.6%.

Is SYSTEMS DESIGN Co's Beneish M-Score too high?

SYSTEMS DESIGN Co's current Beneish M-Score is -2.73. Based on the distribution chart, SYSTEMS DESIGN Co ranks #963 out of 2631 companies in the Software industry, which is above the industry midpoint. Overall, SYSTEMS DESIGN Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does SYSTEMS DESIGN Co's Beneish M-Score compare to IBM and ACN?

According to the Software industry distribution chart, SYSTEMS DESIGN Co ranks #963 out of 2631 companies for Beneish M-Score. This puts SYSTEMS DESIGN Co in the upper 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 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 SYSTEMS DESIGN Co and its competitors. SYSTEMS DESIGN Co's current Beneish M-Score is -2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is SYSTEMS DESIGN Co stock overvalued right now?

Based on GuruFocus' analysis, SYSTEMS DESIGN Co (TSE:3766) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,043.89, compared to a current price of 円1,419.00 — trading 35.9% above its estimated fair value. The current Beneish M-Score is -2.73. SYSTEMS DESIGN Co's overall GF Score™ is 71/100 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 SYSTEMS DESIGN Co (TSE:3766), the current Beneish M-Score is -2.73 as of Jul. 13, 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 SYSTEMS DESIGN Co (TSE:3766) Overvalued in 2026?

Based on GuruFocus' analysis, SYSTEMS DESIGN Co stock appears to be overvalued. The current stock price of 円1,419.00 is trading 35.9% above its estimated GF Value™ of 円1,043.89. GuruFocus considers SYSTEMS DESIGN Co to be Significantly Overvalued.

Key valuation signals for TSE:3766:

Beneish M-Score: -2.73
GF Value™: 円1,043.89 vs. price of 円1,419.00 (35.9% above fair value)
GF Score™: 71/100 with 3 warning signs

No single metric tells the full story. See the TSE:3766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

SYSTEMS DESIGN Co Business Description

Industry Technology Software

Comparable Companies TSE:5026 TSE:4386 TSE:5255 TSE:5133 TSE:460A TSE:2375 TSE:7120 TSE:3682 TSE:548A TSE:2493 IBM NSE:TCS ACN NSE:INFY TSE:6702 TSE:6701 NSE:HCLTECH FISV XMAD:AMS FIS

Address 2-1-1 Nishi-Shinjuku, 32nd floor, Shinjuku Mitsui Building, Shinjuku-ku, Tokyo, JPN

Website https://www.sdcj.co.jp

SYSTEMS DESIGN Co Ltd is an information technology service provider in Japan. The business of the company includes system development, integration, outsourcing business, system operation, data solution, and product service. The services offered by the company include quality control system, accounting system, a repair service system, and a dealer management system.

71GF Score

Get the complete analysis for TSE:3766

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

円1,419.00

Price

円1,043.89

GF Value

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