Zenhoren Co (TSE:5845) Beneish M-Score: -3.20 (As of Jun. 26, 2026)


TSE:5845 Zenhoren Co Ltd TSE:5845
41 GF Score
Price 円996.00
GF Value 円886.33
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Zenhoren Co Beneish M-Score?

Zenhoren Co TSE:5845 +0.20% 41 Beneish M-Score is -3.20 as of Jun. 26, 2026. GuruFocus rates TSE:5845 with a GF Score™ of 41/100 and a GF Value™ of 円886.33 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,020 Business Services companies, Zenhoren Co ranks better than 85.98% 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 -3.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:5845' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Med: -2.87   Max: -2.72
Current: -3.2

During the past 5 years, the highest Beneish M-Score of Zenhoren Co was -2.72. The lowest was -3.20. And the median was -2.87.

Zenhoren Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Zenhoren 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.

Zenhoren Co Beneish M-Score Chart

Zenhoren Co Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
0.00 0.00 -2.72 -2.87 -3.20

Zenhoren Co Semi-Annual Data
Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Beneish M-Score Get a 7-Day Free Trial -2.72 0.00 -2.87 0.00 -3.20

TSE:5845 vs CTAS, CPRT, GPN: Beneish M-Score Comparison

For the Specialty Business Services subindustry, Zenhoren 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.

Zenhoren Co Beneish M-Score vs Business Services Industry

For the Business Services industry and Industrials sector, Zenhoren Co's Beneish M-Score distribution charts can be found below:

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


TSE:5845
41GF Score
Zenhoren Co Ltd TSE:5845
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zenhoren 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 Zenhoren 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 * 0.9584+0.528 * 0.9603+0.404 * 0.9866+0.892 * 1.0207+0.115 * 0.7107
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.137127-0.327 * 0.9872
=-3.20

* 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7,945 Mil.
Revenue was 円26,188 Mil.
Gross Profit was 円18,233 Mil.
Total Current Assets was 円19,048 Mil.
Total Assets was 円24,904 Mil.
Property, Plant and Equipment(Net PPE) was 円315 Mil.
Depreciation, Depletion and Amortization(DDA) was 円863 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円16,490 Mil.
Long-Term Debt & Capital Lease Obligation was 円240 Mil.
Net Income was 円1,728 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円5,143 Mil.
 Total Receivables was 円8,122 Mil.
Revenue was 円25,658 Mil.
Gross Profit was 円17,154 Mil.
Total Current Assets was 円16,677 Mil.
Total Assets was 円22,762 Mil.
Property, Plant and Equipment(Net PPE) was 円952 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,034 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円15,485 Mil.
Long-Term Debt & Capital Lease Obligation was 円5 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)
=(7945 / 26188) / (8122 / 25658)
=0.303383 / 0.316548
=0.9584

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)
=(17154 / 25658) / (18233 / 26188)
=0.668563 / 0.696235
=0.9603

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 - (19048 + 315) / 24904) / (1 - (16677 + 952) / 22762)
=0.222494 / 0.225507
=0.9866

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
=26188 / 25658
=1.0207

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))
=(1034 / (1034 + 952)) / (863 / (863 + 315))
=0.520645 / 0.732598
=0.7107

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 / 26188) / (0 / 25658)
=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)
=((240 + 16490) / 24904) / ((5 + 15485) / 22762)
=0.67178 / 0.68052
=0.9872

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
=(1728 - 0 - 5143) / 24904
=-0.137127

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.

Zenhoren Co has a M-score of -3.20 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 -3.20 mean?
Zenhoren Co (TSE:5845) has a Beneish M-Score of -3.20 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zenhoren Co and its competitors. According to the industry distribution chart, Zenhoren Co ranks #143 out of 1020 companies in the Business Services industry, placing it in the top 14%.
Is Zenhoren Co's Beneish M-Score too high?
Zenhoren Co's current Beneish M-Score is -3.20. Based on the distribution chart, Zenhoren Co ranks #143 out of 1020 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zenhoren Co has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenhoren Co's Beneish M-Score compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenhoren Co ranks #143 out of 1020 companies for Beneish M-Score. This places Zenhoren Co in the top 14% of its industry — outperforming the majority of peers. 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 Business Services company?
A good Beneish M-Score depends on the Business Services 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 Zenhoren Co and its competitors. Zenhoren Co's current Beneish M-Score is -3.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenhoren Co stock overvalued right now?
Based on GuruFocus' analysis, Zenhoren Co (TSE:5845) is currently considered Modestly Overvalued. The stock's GF Value™ is 円886.33, compared to a current price of 円996.00 — trading 12.4% above its estimated fair value. The current Beneish M-Score is -3.20. Zenhoren Co's overall GF Score™ is 41/100 with 4 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 Zenhoren Co (TSE:5845), the current Beneish M-Score is -3.20 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 Zenhoren Co (TSE:5845) Overvalued in 2026?

Based on GuruFocus' analysis, Zenhoren Co stock appears to be overvalued. The current stock price of 円996.00 is trading 12.4% above its estimated GF Value™ of 円886.33. GuruFocus considers Zenhoren Co to be Modestly Overvalued.

Key valuation signals for TSE:5845:

  • Beneish M-Score: -3.20
  • GF Value™: 円886.33 vs. price of 円996.00 (12.4% above fair value)
  • GF Score™: 41/100 with 4 warning signs

No single metric tells the full story. See the TSE:5845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zenhoren Co Business Description

Address 905 Ameku, Okinawa Prefecture, Naha, JPN, 900-8608
Zenhoren Co Ltd is engaged in the rent liability guarantee business, providing rent guarantee services for residential properties with coverage of up to 24 months rent, including monthly rent, moving-out settlement fees, and tenant accident expense insurance. For business use, the Z-Business NEO service covers stores and offices with guarantees up to 24 months rent. The company also offers guarantees for parking lots and trunk rooms, the Z-value service for combined rent guarantee and fire insurance via smartphone, and Z-WEB/Z-WEB2.0 for centralized management by real estate companies. In addition, Zenhoren provides Z-College Support (tuition guarantee), enabling vocational schools and students to pay tuition fees in installments.
41GF Score

Get the complete analysis for TSE:5845

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

円996.00
Price
円886.33
GF Value