Elements (TSE:5246) Beneish M-Score: -1.86 (As of Jun. 26, 2026)


TSE:5246 Elements Inc TSE:5246
59 GF Score
Price 円575.00
GF Value 円1,517.76
Valuation Possible Value Trap
! 5 Warning Signs
View Full Analysis

What is Elements Beneish M-Score?

Elements TSE:5246 -3.69% 59 Beneish M-Score is -1.86 as of Jun. 26, 2026. GuruFocus rates TSE:5246 with a GF Score™ of 59/100 and a GF Value™ of 円1,517.76 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,634 Software companies, Elements ranks worse than 79.31% 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 -1.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:5246' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66   Med: -1.92   Max: 0.67
Current: -1.86

During the past 6 years, the highest Beneish M-Score of Elements was 0.67. The lowest was -2.66. And the median was -1.92.

Elements Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Elements'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.

Elements Beneish M-Score Chart

Elements Annual Data
Trend Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Beneish M-Score
Get a 7-Day Free Trial 0.00 -2.66 0.67 -1.97 -1.86

Elements Semi-Annual Data
Nov20 Nov21 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only 0.67 0.00 -1.97 0.00 -1.86

TSE:5246 vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Elements'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.

Elements Beneish M-Score vs Software Industry

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

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


TSE:5246
59GF Score
Elements Inc TSE:5246
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Elements 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 Elements 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 * 1.2643+0.528 * 1.1067+0.404 * 1.123+0.892 * 1.5301+0.115 * 0.8597
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.028028-0.327 * 1.1822
=-1.86

* 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 (Nov25) TTM:Last Year (Nov24) TTM:
Total Receivables was 円757 Mil.
Revenue was 円3,895 Mil.
Gross Profit was 円3,019 Mil.
Total Current Assets was 円4,496 Mil.
Total Assets was 円7,240 Mil.
Property, Plant and Equipment(Net PPE) was 円322 Mil.
Depreciation, Depletion and Amortization(DDA) was 円362 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円1,845 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,810 Mil.
Net Income was 円-701 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-498 Mil.
 Total Receivables was 円392 Mil.
Revenue was 円2,546 Mil.
Gross Profit was 円2,183 Mil.
Total Current Assets was 円3,207 Mil.
Total Assets was 円4,917 Mil.
Property, Plant and Equipment(Net PPE) was 円245 Mil.
Depreciation, Depletion and Amortization(DDA) was 円204 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円707 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,392 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)
=(757.489 / 3895.112) / (391.581 / 2545.724)
=0.194472 / 0.153819
=1.2643

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)
=(2183.371 / 2545.724) / (3018.548 / 3895.112)
=0.857662 / 0.774958
=1.1067

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 - (4495.523 + 322.41) / 7239.954) / (1 - (3207.262 + 244.898) / 4916.868)
=0.334535 / 0.297895
=1.123

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
=3895.112 / 2545.724
=1.5301

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))
=(204.308 / (204.308 + 244.898)) / (362.187 / (362.187 + 322.41))
=0.45482 / 0.529051
=0.8597

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 / 3895.112) / (0 / 2545.724)
=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)
=((1809.504 + 1845.244) / 7239.954) / ((1392.436 + 707.122) / 4916.868)
=0.504803 / 0.427011
=1.1822

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
=(-700.666 - 0 - -497.744) / 7239.954
=-0.028028

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.

Elements has a M-score of -1.86 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 -1.86 mean?
Elements (TSE:5246) has a Beneish M-Score of -1.86 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Elements and its competitors. According to the industry distribution chart, Elements ranks #2089 out of 2634 companies in the Software industry, placing it in the top 79.3%.
Is Elements' Beneish M-Score too high?
Elements' current Beneish M-Score is -1.86. Based on the distribution chart, Elements ranks #2089 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Elements has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elements' Beneish M-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Elements ranks #2089 out of 2634 companies for Beneish M-Score. This places Elements 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 Elements and its competitors. Elements's current Beneish M-Score is -1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elements stock overvalued right now?
Based on GuruFocus' analysis, Elements (TSE:5246) is currently considered Possible Value Trap. The stock's GF Value™ is 円1,517.76, compared to a current price of 円575.00 — trading 62.1% below its estimated fair value. The current Beneish M-Score is -1.86. Elements' overall GF Score™ is 59/100 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 Elements (TSE:5246), the current Beneish M-Score is -1.86 as of Jun. 26, 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 Elements (TSE:5246) Overvalued in 2026?

Based on GuruFocus' analysis, Elements stock appears to be undervalued. The current stock price of 円575.00 is trading 62.1% below its estimated GF Value™ of 円1,517.76. GuruFocus considers Elements to be Possible Value Trap.

Key valuation signals for TSE:5246:

  • Beneish M-Score: -1.86
  • GF Value™: 円1,517.76 vs. price of 円575.00 (62.1% below fair value)
  • GF Score™: 59/100 with 5 warning signs

No single metric tells the full story. See the TSE:5246 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Elements Business Description

Address 1-6-1 Otemachi, 2th Floor, Otemachi Building, Chiyoda-ku, Tokyo, JPN, 100-0004
Elements Inc is engaged in the development and provision of personal authentication solutions such as LIQUID eKYC, an online identity verification service, that utilizes biometrics, image analysis and machine learning technologies, as well as personal optimization solutions for clothing, food and shelter.
59GF Score

Get the complete analysis for TSE:5246

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

円575.00
Price
円1,517.76
GF Value