Kaneka (TSE:4118) Beneish M-Score: -2.54 (As of Jun. 27, 2026)

What is Kaneka Beneish M-Score?

Kaneka TSE:4118 +0.21% 80 Beneish M-Score is -2.54 as of Jun. 27, 2026. GuruFocus rates TSE:4118 with a GF Score™ of 80/100 and a GF Value™ of 円4,374.91 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,530 Chemicals companies, Kaneka ranks better than 53.27% 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4118' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.6 Max: -2.37
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Kaneka was -2.37. The lowest was -2.86. And the median was -2.60.

Kaneka Beneish M-Score Related Terms

Kaneka Beneish M-Score Historical Data

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The historical data trend for Kaneka'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.

Kaneka Beneish M-Score Chart

Kaneka Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.37

-2.48

-2.59

-2.65

-2.54

Kaneka Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.65	0.00	0.00	0.00	-2.54

TSE:4118 vs LIN, SHW, ECL: Beneish M-Score Comparison

For the Specialty Chemicals subindustry, Kaneka'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.

Kaneka Beneish M-Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kaneka's Beneish M-Score distribution charts can be found below:

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

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80GF Score

Kaneka Corp TSE:4118

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

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Kaneka 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 Kaneka 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 * 1.0304

0.528 * 1.0059

0.404 * 0.9769

0.892 * 1.0055

0.115 * 0.9718

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.019956

0.327 * 0.9848

-2.54

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was 円163,638 Mil.
Revenue was 円811,638 Mil.
Gross Profit was 円225,550 Mil.
Total Current Assets was 円465,718 Mil.
Total Assets was 円959,154 Mil.
Property, Plant and Equipment(Net PPE) was 円355,780 Mil.
Depreciation, Depletion and Amortization(DDA) was 円47,427 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円304,056 Mil.
Long-Term Debt & Capital Lease Obligation was 円90,589 Mil.
Net Income was 円30,977 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円50,118 Mil.

Total Receivables was 円157,937 Mil.
Revenue was 円807,200 Mil.
Gross Profit was 円225,644 Mil.
Total Current Assets was 円444,524 Mil.
Total Assets was 円920,143 Mil.
Property, Plant and Equipment(Net PPE) was 円340,435 Mil.
Depreciation, Depletion and Amortization(DDA) was 円43,937 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円294,933 Mil.
Long-Term Debt & Capital Lease Obligation was 円89,489 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)
	=	(163638 / 811638)	/	(157937 / 807200)
	=	0.201615	/	0.19566
	=	1.0304

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)
	=	(225644 / 807200)	/	(225550 / 811638)
	=	0.279539	/	0.277895
	=	1.0059

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 - (465718 + 355780) / 959154)	/	(1 - (444524 + 340435) / 920143)
	=	0.143518	/	0.146916
	=	0.9769

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
	=	811638	/	807200
	=	1.0055

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))
	=	(43937 / (43937 + 340435))	/	(47427 / (47427 + 355780))
	=	0.114309	/	0.117624
	=	0.9718

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 / 811638)	/	(0 / 807200)
	=	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)
	=	((90589 + 304056) / 959154)	/	((89489 + 294933) / 920143)
	=	0.411451	/	0.417785
	=	0.9848

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
	=	(30977 - 0	-	50118)	/	959154
	=	-0.019956

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.

Kaneka has a M-score of -2.54 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 -2.54 mean?

Kaneka (TSE:4118) has a Beneish M-Score of -2.54 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Kaneka and its competitors. According to the industry distribution chart, Kaneka ranks #715 out of 1530 companies in the Chemicals industry, placing it in the top 46.7%.

Is Kaneka's Beneish M-Score too high?

Kaneka's current Beneish M-Score is -2.54. Based on the distribution chart, Kaneka ranks #715 out of 1530 companies in the Chemicals industry, which is above the industry midpoint. Overall, Kaneka has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Kaneka's Beneish M-Score compare to LIN and SHW?

According to the Chemicals industry distribution chart, Kaneka ranks #715 out of 1530 companies for Beneish M-Score. This puts Kaneka 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 Kaneka and its competitors. Kaneka's current Beneish M-Score is -2.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Kaneka stock overvalued right now?

Based on GuruFocus' analysis, Kaneka (TSE:4118) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,374.91, compared to a current price of 円5,775.00 — trading 32% above its estimated fair value. The current Beneish M-Score is -2.54. Kaneka's overall GF Score™ is 80/100 with 9 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 Kaneka (TSE:4118), the current Beneish M-Score is -2.54 as of Jun. 27, 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 Kaneka (TSE:4118) Overvalued in 2026?

Based on GuruFocus' analysis, Kaneka stock appears to be overvalued. The current stock price of 円5,775.00 is trading 32% above its estimated GF Value™ of 円4,374.91. GuruFocus considers Kaneka to be Significantly Overvalued.

Key valuation signals for TSE:4118:

Beneish M-Score: -2.54
GF Value™: 円4,374.91 vs. price of 円5,775.00 (32% above fair value)
GF Score™: 80/100 with 9 warning signs

No single metric tells the full story. See the TSE:4118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kaneka Business Description

Industry Basic Materials Chemicals

Comparable Companies TSE:4202 TSE:4043 TSE:4966 TSE:7966 TSE:4208 TSE:5301 TSE:4099 TSE:4401 TSE:4205 TSE:4613 LIN XPAR:AI SHW ECL APD XSWX:GIVN SHSE:600309 XSWX:SIKA SZSE:002466 OCSE:NSIS B

Other Exchanges KKA:Germany

Address 3-2-4, Nakanoshima, Kita-ku, Osaka, JPN, 530-8288

Website http://www.kaneka.co.jp

Kaneka Corp manufactures and sells a variety of chemicals, plastics, and chemical-based products. The company organizes itself into seven segments based on product type. The foodstuffs segment, which generates more revenue than any other segment, sells margarine, shortening, bakery yeast and spices. The chemicals segment sells polyvinyl chloride used in pipes and flooring. The functional and expandable products segments sell polystyrene- and silicone-based products. The life science products segment sells medical devices, which include balloon catheters for vessel stenosis, and pharmaceutical ingredients. The electronic products segment sells heat resistant films and optical materials. The synthetic fibers segment sells fibers used to make apparel. The majority of revenue comes from Japan.

80GF Score

Get the complete analysis for TSE:4118

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

円5,775.00

Price

円4,374.91

GF Value

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