New Japan Chemical Co (TSE:4406) Beneish M-Score: -2.62 (As of Jul. 11, 2026)


TSE:4406 New Japan Chemical Co Ltd TSE:4406
61 GF Score
Price 円202.00
GF Value 円199.66
Valuation Fairly Valued
! 5 Warning Signs
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What is New Japan Chemical Co Beneish M-Score?

New Japan Chemical Co TSE:4406 +0.50% 61 Beneish M-Score is -2.62 as of Jul. 11, 2026. GuruFocus rates TSE:4406 with a GF Score™ of 61/100 and a GF Value™ of 円199.66 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,525 Chemicals companies, New Japan Chemical Co ranks better than 60.26% 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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4406' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.55   Max: -2.42
Current: -2.62

During the past 13 years, the highest Beneish M-Score of New Japan Chemical Co was -2.42. The lowest was -2.88. And the median was -2.55.

New Japan Chemical Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for New Japan Chemical 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.

New Japan Chemical Co Beneish M-Score Chart

New Japan Chemical Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.42 -2.53 -2.71 -2.55 -2.62

New Japan Chemical 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 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 -2.71 0.00 -2.55 0.00 -2.62

TSE:4406 vs LIN, SHW, ECL: Beneish M-Score Comparison

For the Specialty Chemicals subindustry, New Japan Chemical 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.

New Japan Chemical Co Beneish M-Score vs Chemicals Industry

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

* The bar in red indicates where New Japan Chemical Co's Beneish M-Score falls into.


TSE:4406
61GF Score
New Japan Chemical Co Ltd TSE:4406
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

New Japan Chemical 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 New Japan Chemical 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 * 1.0029+0.528 * 1.0053+0.404 * 0.9863+0.892 * 0.9817+0.115 * 1.0077
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.025926-0.327 * 1.0242
=-2.62

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was 円7,453 Mil.
Revenue was 円32,105 Mil.
Gross Profit was 円5,325 Mil.
Total Current Assets was 円20,084 Mil.
Total Assets was 円40,345 Mil.
Property, Plant and Equipment(Net PPE) was 円9,018 Mil.
Depreciation, Depletion and Amortization(DDA) was 円755 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円10,292 Mil.
Long-Term Debt & Capital Lease Obligation was 円4,946 Mil.
Net Income was 円597 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円1,643 Mil.
 Total Receivables was 円7,570 Mil.
Revenue was 円32,703 Mil.
Gross Profit was 円5,453 Mil.
Total Current Assets was 円17,584 Mil.
Total Assets was 円37,519 Mil.
Property, Plant and Equipment(Net PPE) was 円9,334 Mil.
Depreciation, Depletion and Amortization(DDA) was 円788 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円9,076 Mil.
Long-Term Debt & Capital Lease Obligation was 円4,760 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)
=(7453 / 32105) / (7570 / 32703)
=0.232145 / 0.231477
=1.0029

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)
=(5453 / 32703) / (5325 / 32105)
=0.166743 / 0.165862
=1.0053

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 - (20084 + 9018) / 40345) / (1 - (17584 + 9334) / 37519)
=0.278671 / 0.28255
=0.9863

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
=32105 / 32703
=0.9817

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))
=(788 / (788 + 9334)) / (755 / (755 + 9018))
=0.07785 / 0.077254
=1.0077

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 / 32105) / (0 / 32703)
=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)
=((4946 + 10292) / 40345) / ((4760 + 9076) / 37519)
=0.377692 / 0.368773
=1.0242

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
=(597 - 0 - 1643) / 40345
=-0.025926

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.

New Japan Chemical Co has a M-score of -2.62 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 -2.62 mean?
New Japan Chemical Co (TSE:4406) has a Beneish M-Score of -2.62 as of Jul. 11, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on New Japan Chemical Co and its competitors. According to the industry distribution chart, New Japan Chemical Co ranks #606 out of 1525 companies in the Chemicals industry, placing it in the top 39.7%.
Is New Japan Chemical Co's Beneish M-Score too high?
New Japan Chemical Co's current Beneish M-Score is -2.62. Based on the distribution chart, New Japan Chemical Co ranks #606 out of 1525 companies in the Chemicals industry, which is above the industry midpoint. Overall, New Japan Chemical Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does New Japan Chemical Co's Beneish M-Score compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #606 out of 1525 companies for Beneish M-Score. This puts New Japan Chemical 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 New Japan Chemical Co and its competitors. New Japan Chemical Co's current Beneish M-Score is -2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Fairly Valued. The stock's GF Value™ is 円199.66, compared to a current price of 円202.00 — trading 1.2% above its estimated fair value. The current Beneish M-Score is -2.62. New Japan Chemical Co's overall GF Score™ is 61/100 with 5 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 New Japan Chemical Co (TSE:4406), the current Beneish M-Score is -2.62 as of Jul. 11, 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?

Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued. The current stock price of 円202.00 is trading 1.2% above its estimated GF Value™ of 円199.66. GuruFocus considers New Japan Chemical Co to be Fairly Valued.

Key valuation signals for TSE:4406:

  • Beneish M-Score: -2.62
  • GF Value™: 円199.66 vs. price of 円202.00 (1.2% above fair value)
  • GF Score™: 61/100 with 5 warning signs

No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

New Japan Chemical Co Business Description

Address 13, Kashima Yagura-cho, Fushimi-ku, Kyoto, JPN
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
61GF Score

Get the complete analysis for TSE:4406

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

円202.00
Price
円199.66
GF Value