bBreak Systems Co (TSE:3986) Beneish M-Score: -2.70 (As of Jun. 26, 2026)


TSE:3986 bBreak Systems Co Ltd TSE:3986
83 GF Score
Price 円550.00
GF Value 円483.32
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is bBreak Systems Co Beneish M-Score?

bBreak Systems Co TSE:3986 +3.97% 83 Beneish M-Score is -2.70 as of Jun. 26, 2026. GuruFocus rates TSE:3986 with a GF Score™ of 83/100 and a GF Value™ of 円483.32 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,634 Software companies, bBreak Systems Co ranks better than 61.28% 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:3986' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.67   Max: 10.53
Current: -2.7

During the past 11 years, the highest Beneish M-Score of bBreak Systems Co was 10.53. The lowest was -2.94. And the median was -2.67.

bBreak Systems Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for bBreak Systems 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.

bBreak Systems Co Beneish M-Score Chart

bBreak Systems Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.25 -2.67 10.53 -2.82 -2.70

bBreak Systems Co Semi-Annual Data
Jun15 Jun16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 -2.82 0.00 -2.70 0.00

TSE:3986 vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, bBreak Systems 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.

bBreak Systems Co Beneish M-Score vs Software Industry

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

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


TSE:3986
83GF Score
bBreak Systems Co Ltd TSE:3986
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

bBreak Systems 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 bBreak Systems 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 * 0.8278+0.528 * 1.0149+0.404 * 1.0464+0.892 * 0.99+0.115 * 0.4319
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.010053-0.327 * 0.8977
=-2.70

* 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 (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was 円111 Mil.
Revenue was 円1,378 Mil.
Gross Profit was 円644 Mil.
Total Current Assets was 円2,128 Mil.
Total Assets was 円2,292 Mil.
Property, Plant and Equipment(Net PPE) was 円75 Mil.
Depreciation, Depletion and Amortization(DDA) was 円10 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円368 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円92 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円115 Mil.
 Total Receivables was 円135 Mil.
Revenue was 円1,392 Mil.
Gross Profit was 円660 Mil.
Total Current Assets was 円2,065 Mil.
Total Assets was 円2,228 Mil.
Property, Plant and Equipment(Net PPE) was 円80 Mil.
Depreciation, Depletion and Amortization(DDA) was 円4 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円399 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)
=(111.028 / 1377.558) / (135.479 / 1391.519)
=0.080598 / 0.097361
=0.8278

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)
=(659.891 / 1391.519) / (643.694 / 1377.558)
=0.474223 / 0.467272
=1.0149

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 - (2127.928 + 74.623) / 2292.277) / (1 - (2064.888 + 79.959) / 2228.199)
=0.039143 / 0.037408
=1.0464

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
=1377.558 / 1391.519
=0.99

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))
=(4.151 / (4.151 + 79.959)) / (9.627 / (9.627 + 74.623))
=0.049352 / 0.114267
=0.4319

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 / 1377.558) / (0 / 1391.519)
=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 + 368.483) / 2292.277) / ((0 + 398.994) / 2228.199)
=0.16075 / 0.179066
=0.8977

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
=(91.836 - 0 - 114.88) / 2292.277
=-0.010053

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.

bBreak Systems Co has a M-score of -2.70 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 -2.70 mean?
bBreak Systems Co (TSE:3986) has a Beneish M-Score of -2.70 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on bBreak Systems Co and its competitors. According to the industry distribution chart, bBreak Systems Co ranks #1020 out of 2634 companies in the Software industry, placing it in the top 38.7%.
Is bBreak Systems Co's Beneish M-Score too high?
bBreak Systems Co's current Beneish M-Score is -2.70. Based on the distribution chart, bBreak Systems Co ranks #1020 out of 2634 companies in the Software industry, which is above the industry midpoint. Overall, bBreak Systems Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does bBreak Systems Co's Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, bBreak Systems Co ranks #1020 out of 2634 companies for Beneish M-Score. This puts bBreak Systems 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 bBreak Systems Co and its competitors. bBreak Systems Co's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is bBreak Systems Co stock overvalued right now?
Based on GuruFocus' analysis, bBreak Systems Co (TSE:3986) is currently considered Modestly Overvalued. The stock's GF Value™ is 円483.32, compared to a current price of 円550.00 — trading 13.8% above its estimated fair value. The current Beneish M-Score is -2.70. bBreak Systems Co's overall GF Score™ is 83/100 with 6 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 bBreak Systems Co (TSE:3986), the current Beneish M-Score is -2.70 as of Jun. 26, 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 bBreak Systems Co (TSE:3986) Overvalued in 2026?

Based on GuruFocus' analysis, bBreak Systems Co stock appears to be overvalued. The current stock price of 円550.00 is trading 13.8% above its estimated GF Value™ of 円483.32. GuruFocus considers bBreak Systems Co to be Modestly Overvalued.

Key valuation signals for TSE:3986:

  • Beneish M-Score: -2.70
  • GF Value™: 円483.32 vs. price of 円550.00 (13.8% above fair value)
  • GF Score™: 83/100 with 6 warning signs

No single metric tells the full story. See the TSE:3986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

bBreak Systems Co Business Description

Address 2-10-2 Higashigotanda, Shinagawa-ku, 5th Floor, Higashi-Gotanda Square, Tokyo, JPN, 141-0022
bBreak Systems Co Ltd develops and sells packaged software, Cloud EPR for corporate management. It is engaged in providing enterprise resource planning package software, MA-EYES, and system integration. The Company's business segments are package business, which is centered on providing its own ERP via cloud computing, and the business that provides services to clients.
83GF Score

Get the complete analysis for TSE:3986

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

円550.00
Price
円483.32
GF Value