Ridge-i (TSE:5572) Beneish M-Score: -1.23 (As of Jun. 26, 2026)


TSE:5572 Ridge-i Inc TSE:5572
56 GF Score
Price 円2,483.00
GF Value 円5,194.44
Valuation Possible Value Trap
! 1 Warning Sign
View Full Analysis

What is Ridge-i Beneish M-Score?

Ridge-i TSE:5572 -6.65% 56 Beneish M-Score is -1.23 as of Jun. 26, 2026. GuruFocus rates TSE:5572 with a GF Score™ of 56/100 and a GF Value™ of 円5,194.44 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 2,634 Software companies, Ridge-i ranks worse than 87.7% 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.

Warning Sign:

Beneish M-Score -1.23 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSE:5572' s Beneish M-Score Range Over the Past 10 Years
Min: -2.52   Med: -1.23   Max: 3.04
Current: -1.23

During the past 5 years, the highest Beneish M-Score of Ridge-i was 3.04. The lowest was -2.52. And the median was -1.23.

Ridge-i Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Ridge-i'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.

Ridge-i Beneish M-Score Chart

Ridge-i Annual Data
Trend Jul21 Jul22 Jul23 Jul24 Jul25
Beneish M-Score
0.00 0.00 3.04 -2.52 -1.23

Ridge-i Semi-Annual Data
Jul21 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only 0.00 -2.52 0.00 -1.23 0.00

TSE:5572 vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Ridge-i'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.

Ridge-i Beneish M-Score vs Software Industry

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

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


TSE:5572
56GF Score
Ridge-i Inc TSE:5572
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ridge-i 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 Ridge-i 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 * 0.5867+0.528 * 1.3453+0.404 * 1.0466+0.892 * 2.4192+0.115 * 0.2771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.031024-0.327 * 0.6825
=-1.23

* 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 (Jul25) TTM:Last Year (Jul24) TTM:
Total Receivables was 円405 Mil.
Revenue was 円2,593 Mil.
Gross Profit was 円1,326 Mil.
Total Current Assets was 円2,306 Mil.
Total Assets was 円2,846 Mil.
Property, Plant and Equipment(Net PPE) was 円116 Mil.
Depreciation, Depletion and Amortization(DDA) was 円85 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円370 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円140 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円51 Mil.
 Total Receivables was 円285 Mil.
Revenue was 円1,072 Mil.
Gross Profit was 円737 Mil.
Total Current Assets was 円2,468 Mil.
Total Assets was 円3,043 Mil.
Property, Plant and Equipment(Net PPE) was 円141 Mil.
Depreciation, Depletion and Amortization(DDA) was 円19 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円532 Mil.
Long-Term Debt & Capital Lease Obligation was 円47 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)
=(405.196 / 2593.322) / (285.496 / 1071.954)
=0.156246 / 0.266332
=0.5867

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)
=(737.367 / 1071.954) / (1325.959 / 2593.322)
=0.687872 / 0.511297
=1.3453

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 - (2306.169 + 115.896) / 2846.318) / (1 - (2468.34 + 141.484) / 3043.228)
=0.149053 / 0.142416
=1.0466

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
=2593.322 / 1071.954
=2.4192

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))
=(18.753 / (18.753 + 141.484)) / (84.714 / (84.714 + 115.896))
=0.117033 / 0.422282
=0.2771

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 / 2593.322) / (0 / 1071.954)
=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)
=((0 + 369.883) / 2846.318) / ((47.237 + 532.241) / 3043.228)
=0.129951 / 0.190416
=0.6825

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
=(139.627 - 0 - 51.323) / 2846.318
=0.031024

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.

Ridge-i has a M-score of -1.23 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.23 mean?
Ridge-i (TSE:5572) has a Beneish M-Score of -1.23 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ridge-i and its competitors. According to the industry distribution chart, Ridge-i ranks #2310 out of 2634 companies in the Software industry, placing it in the top 87.7%.
Is Ridge-i's Beneish M-Score too high?
Ridge-i's current Beneish M-Score is -1.23. Based on the distribution chart, Ridge-i ranks #2310 out of 2634 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Ridge-i has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ridge-i's Beneish M-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Ridge-i ranks #2310 out of 2634 companies for Beneish M-Score. This places Ridge-i 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 Ridge-i and its competitors. Ridge-i's current Beneish M-Score is -1.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ridge-i stock overvalued right now?
Based on GuruFocus' analysis, Ridge-i (TSE:5572) is currently considered Possible Value Trap. The stock's GF Value™ is 円5,194.44, compared to a current price of 円2,483.00 — trading 52.2% below its estimated fair value. The current Beneish M-Score is -1.23. Ridge-i's overall GF Score™ is 56/100 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 Ridge-i (TSE:5572), the current Beneish M-Score is -1.23 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 Ridge-i (TSE:5572) Overvalued in 2026?

Based on GuruFocus' analysis, Ridge-i stock appears to be undervalued. The current stock price of 円2,483.00 is trading 52.2% below its estimated GF Value™ of 円5,194.44. GuruFocus considers Ridge-i to be Possible Value Trap.

Key valuation signals for TSE:5572:

  • Beneish M-Score: -1.23
  • GF Value™: 円5,194.44 vs. price of 円2,483.00 (52.2% below fair value)
  • GF Score™: 56/100 with 1 warning sign

No single metric tells the full story. See the TSE:5572 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ridge-i Business Description

Address 1-6-1 Otemachi, Otemachi Building 438, Chiyoda-ku,, Tokyo, JPN, 100-0004
Ridge-i Inc is engaged in the consulting and development of AI/deep learning technology; provision of joint ventures, licenses, maintenance models, products developed in-house and provision of AI analysis solutions using satellite data.
56GF Score

Get the complete analysis for TSE:5572

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

円2,483.00
Price
円5,194.44
GF Value