Nippon Paint Holdings Co (TSE:4612) Beneish M-Score : -2.40 (As of Jul. 13, 2025)

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What is Nippon Paint Holdings Co Beneish M-Score?

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 -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:4612' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.36 Max: -0.55
Current: -2.4

During the past 13 years, the highest Beneish M-Score of Nippon Paint Holdings Co was -0.55. The lowest was -3.08. And the median was -2.36.

Nippon Paint Holdings Co Beneish M-Score Historical Data

The historical data trend for Nippon Paint Holdings 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.

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Nippon Paint Holdings Co Beneish M-Score Chart

Nippon Paint Holdings Co Annual Data

Trend

Mar15

Mar16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.64

-2.14

-2.39

-2.60

-2.38

Nippon Paint Holdings Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Beneish M-Score	Get a 7-Day Free Trial															-2.52	-2.39	-2.50	-2.38	-2.40

Competitive Comparison of Nippon Paint Holdings Co's Beneish M-Score

For the Specialty Chemicals subindustry, Nippon Paint Holdings 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.

Nippon Paint Holdings Co's Beneish M-Score Distribution in the Chemicals Industry

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

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

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Nippon Paint Holdings 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 Nippon Paint Holdings Co 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 * 1.0616

0.528 * 0.9911

0.404 * 1.088

0.892 * 1.1092

0.115 * 0.9451

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0049

4.679 * -0.001807

0.327 * 1.2593

-2.40

This Year (Mar25) TTM:

Last Year (Mar24) TTM:

Total Receivables was 円451,263 Mil.
Revenue was 405724 + 415973 + 405604 + 432823 = 円1,660,124 Mil.
Gross Profit was 174092 + 165202 + 161580 + 173940 = 円674,814 Mil.
Total Current Assets was 円1,110,873 Mil.
Total Assets was 円3,658,451 Mil.
Property, Plant and Equipment(Net PPE) was 円491,717 Mil.
Depreciation, Depletion and Amortization(DDA) was 円64,717 Mil.
Selling, General, & Admin. Expense(SGA) was 円489,928 Mil.
Total Current Liabilities was 円1,201,533 Mil.
Long-Term Debt & Capital Lease Obligation was 円693,476 Mil.
Net Income was 36998 + 29134 + 31864 + 36059 = 円134,055 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was -27128 + 101175 + 40871 + 25749 = 円140,667 Mil.

Total Receivables was 円383,213 Mil.
Revenue was 384319 + 356696 + 392953 + 362711 = 円1,496,679 Mil.
Gross Profit was 156721 + 144911 + 156110 + 145234 = 円602,976 Mil.
Total Current Assets was 円954,832 Mil.
Total Assets was 円2,889,081 Mil.
Property, Plant and Equipment(Net PPE) was 円442,083 Mil.
Depreciation, Depletion and Amortization(DDA) was 円54,596 Mil.
Selling, General, & Admin. Expense(SGA) was 円439,535 Mil.
Total Current Liabilities was 円578,554 Mil.
Long-Term Debt & Capital Lease Obligation was 円609,758 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)
	=	(451263 / 1660124)	/	(383213 / 1496679)
	=	0.271825	/	0.256042
	=	1.0616

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)
	=	(602976 / 1496679)	/	(674814 / 1660124)
	=	0.402876	/	0.406484
	=	0.9911

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 - (1110873 + 491717) / 3658451)	/	(1 - (954832 + 442083) / 2889081)
	=	0.561948	/	0.516485
	=	1.088

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
	=	1660124	/	1496679
	=	1.1092

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))
	=	(54596 / (54596 + 442083))	/	(64717 / (64717 + 491717))
	=	0.109922	/	0.116307
	=	0.9451

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)
	=	(489928 / 1660124)	/	(439535 / 1496679)
	=	0.295115	/	0.293674
	=	1.0049

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)
	=	((693476 + 1201533) / 3658451)	/	((609758 + 578554) / 2889081)
	=	0.517981	/	0.411311
	=	1.2593

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
	=	(134055 - 0	-	140667)	/	3658451
	=	-0.001807

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.

Nippon Paint Holdings Co has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Nippon Paint Holdings Co Beneish M-Score Related Terms

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Nippon Paint Holdings Co Business Description

Industry

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Traded in Other Exchanges

NPPHY:USA NPCPF:USA NI7:Germany

Address

2-1-2 Oyodo Kita, Kita-ku, Osaka, JPN, 531-8511

Website

http://www.nipponpaint-holdings.com

Nippon Paint is a global paint company with operations in over 50 countries. About two thirds of sales are in decorative paint, serving mostly residential, and some commercial customers. It has the dominant share of the paint markets in China and some smaller Asian countries, as well as Australia. In other regions its often one of the three largest players. Its products are distributed via paint and home improvement retailers, some 300,000 distributors globally. Household brands include Nipsea, Nippon Paint, Dulux (in Asia, the Pacific, and Europe), British Paints, Betek Boya, and Alina, among others. About one fourth of sales are in industrial coatings and paints. Here, customer groups include manufacturers of automotives and industrial products.

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