Flect Co (TSE:4414) Beneish M-Score: -1.87 (As of Jun. 27, 2026)


TSE:4414 Flect Co Ltd TSE:4414
77 GF Score
Price 円1,015.00
GF Value 円2,839.16
Valuation Significantly Undervalued
! 1 Warning Sign
View Full Analysis

What is Flect Co Beneish M-Score?

Flect Co TSE:4414 -0.88% 77 Beneish M-Score is -1.87 as of Jun. 27, 2026. GuruFocus rates TSE:4414 with a GF Score™ of 77/100 and a GF Value™ of 円2,839.16 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,634 Software companies, Flect Co ranks worse than 78.97% 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 -1.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4414' s Beneish M-Score Range Over the Past 10 Years
Min: -2.6   Med: -1.87   Max: -0.77
Current: -1.87

During the past 7 years, the highest Beneish M-Score of Flect Co was -0.77. The lowest was -2.60. And the median was -1.87.

Flect Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Flect 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.

Flect Co Beneish M-Score Chart

Flect Co Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial -1.58 -0.77 -2.38 -2.60 -1.87

Flect Co Semi-Annual Data
Mar20 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 -2.38 0.00 -2.60 0.00 -1.87

TSE:4414 vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Flect 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.

Flect Co Beneish M-Score vs Software Industry

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

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


TSE:4414
77GF Score
Flect Co Ltd TSE:4414
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Flect 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 Flect 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 * 1.3176+0.528 * 0.941+0.404 * 0.6469+0.892 * 1.0381+0.115 * 1.4889
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.095805-0.327 * 1.147
=-1.87

* 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1,932 Mil.
Revenue was 円8,252 Mil.
Gross Profit was 円3,908 Mil.
Total Current Assets was 円3,340 Mil.
Total Assets was 円3,695 Mil.
Property, Plant and Equipment(Net PPE) was 円149 Mil.
Depreciation, Depletion and Amortization(DDA) was 円70 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円1,076 Mil.
Long-Term Debt & Capital Lease Obligation was 円382 Mil.
Net Income was 円684 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円330 Mil.
 Total Receivables was 円1,412 Mil.
Revenue was 円7,949 Mil.
Gross Profit was 円3,543 Mil.
Total Current Assets was 円3,733 Mil.
Total Assets was 円4,199 Mil.
Property, Plant and Equipment(Net PPE) was 円102 Mil.
Depreciation, Depletion and Amortization(DDA) was 円93 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円994 Mil.
Long-Term Debt & Capital Lease Obligation was 円450 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)
=(1931.665 / 8251.666) / (1412.319 / 7949.168)
=0.234094 / 0.177669
=1.3176

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)
=(3542.786 / 7949.168) / (3908.221 / 8251.666)
=0.44568 / 0.473628
=0.941

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 - (3339.894 + 148.583) / 3695.451) / (1 - (3733.005 + 101.986) / 4198.504)
=0.056008 / 0.086582
=0.6469

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
=8251.666 / 7949.168
=1.0381

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))
=(93.104 / (93.104 + 101.986)) / (70.095 / (70.095 + 148.583))
=0.477236 / 0.32054
=1.4889

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 / 8251.666) / (0 / 7949.168)
=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)
=((382.365 + 1075.569) / 3695.451) / ((450.117 + 994.036) / 4198.504)
=0.394521 / 0.343968
=1.147

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
=(684.27 - 0 - 330.229) / 3695.451
=0.095805

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.

Flect Co has a M-score of -1.87 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 -1.87 mean?
Flect Co (TSE:4414) has a Beneish M-Score of -1.87 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Flect Co and its competitors. According to the industry distribution chart, Flect Co ranks #2080 out of 2634 companies in the Software industry, placing it in the top 79%.
Is Flect Co's Beneish M-Score too high?
Flect Co's current Beneish M-Score is -1.87. Based on the distribution chart, Flect Co ranks #2080 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Flect Co has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's Beneish M-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Flect Co ranks #2080 out of 2634 companies for Beneish M-Score. This places Flect Co in the lower 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 Flect Co and its competitors. Flect Co's current Beneish M-Score is -1.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,839.16, compared to a current price of 円1,015.00 — trading 64.2% below its estimated fair value. The current Beneish M-Score is -1.87. Flect Co's overall GF Score™ is 77/100 with 1 warning sign 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 Flect Co (TSE:4414), the current Beneish M-Score is -1.87 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 Flect Co (TSE:4414) Overvalued in 2026?

Based on GuruFocus' analysis, Flect Co stock appears to be undervalued. The current stock price of 円1,015.00 is trading 64.2% below its estimated GF Value™ of 円2,839.16. GuruFocus considers Flect Co to be Significantly Undervalued.

Key valuation signals for TSE:4414:

  • Beneish M-Score: -1.87
  • GF Value™: 円2,839.16 vs. price of 円1,015.00 (64.2% below fair value)
  • GF Score™: 77/100 with 1 warning sign

No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Flect Co Business Description

Address 1-1-1 Shibaura, 11th Floor, Hamamatsucho Building, Minato-ku, Tokyo, JPN, 105-0023
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
77GF Score

Get the complete analysis for TSE:4414

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

円1,015.00
Price
円2,839.16
GF Value