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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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Denka Co's Beneish M-Score or its related term are showing as below:
TSE:4061'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.59 Max: -2.46
Current: -2.65
During the past 13 years, the highest Beneish M-Score of Denka Co was -2.46. The lowest was -2.81. And the median was -2.59.
Denka Co Beneish M-Score Related Terms
Denka Co Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Denka 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.
For the Chemicals subindustry, Denka 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.
Denka Co Beneish M-Score vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Denka Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Denka Co's Beneish M-Score falls into.
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 Denka 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 * 1.0448
+
0.528 * 0.8616
+
0.404 * 1.038
+
0.892 * 0.96
+
0.115 * 1.0435
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1
+
4.679 * -0.030043
-
0.327 * 0.9459
=
-2.65
* 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.
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.
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))
=
(27857 / (27857 + 312966))
/
(29165 / (29165 + 343184))
=
0.081735
/
0.078327
=
1.0435
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
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
=
(15695 - 0
-
36154)
/
681000
=
-0.030043
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.
Denka Co has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.
Denka Co (TSE:4061) has a Beneish M-Score of -2.65 as of Jul. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Denka Co and its competitors. According to the industry distribution chart, Denka Co ranks #564 out of 1526 companies in the Chemicals industry, placing it in the top 37%.
Is Denka Co's Beneish M-Score too high?
Denka Co's current Beneish M-Score is -2.65. Based on the distribution chart, Denka Co ranks #564 out of 1526 companies in the Chemicals industry, which is above the industry midpoint. Overall, Denka Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Denka Co's Beneish M-Score compare to DOW?
According to the Chemicals industry distribution chart, Denka Co ranks #564 out of 1526 companies for Beneish M-Score. This puts Denka 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 Chemicals company?
A good Beneish M-Score depends on the Chemicals 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 Denka Co and its competitors. Denka Co's current Beneish M-Score is -2.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denka Co stock overvalued right now?
Based on GuruFocus' analysis, Denka Co (TSE:4061) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,365.00, compared to a current price of 円3,684.00 — trading 55.8% above its estimated fair value. The current Beneish M-Score is -2.65. Denka Co's overall GF Score™ is 60/100 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 Denka Co (TSE:4061), the current Beneish M-Score is -2.65 as of Jul. 21, 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 Denka Co (TSE:4061) Overvalued in 2026?
Based on GuruFocus' analysis, Denka Co stock appears to be overvalued.
The current stock price of 円3,684.00 is trading 55.8% above its estimated GF Value™ of 円2,365.00.
GuruFocus considers Denka Co to be Significantly Overvalued.
Key valuation signals for TSE:4061:
Beneish M-Score: -2.65
GF Value™: 円2,365.00 vs. price of 円3,684.00 (55.8% above fair value)
No single metric tells the full story. See the TSE:4061 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.
60GF Score
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