Daiwa Cycle Co (TSE:5888) Beneish M-Score: -2.04 (As of Jun. 28, 2026)


TSE:5888 Daiwa Cycle Co Ltd TSE:5888
18 GF Score
Price 円2,993.00
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What is Daiwa Cycle Co Beneish M-Score?

Daiwa Cycle Co TSE:5888 +1.46% 18 Beneish M-Score is -2.04 as of Jun. 28, 2026. GuruFocus rates TSE:5888 with a GF Score™ of 18/100. Among 1,274 Vehicles & Parts companies, Daiwa Cycle Co ranks worse than 81.55% 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 -2.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:5888' s Beneish M-Score Range Over the Past 10 Years
Min: -2.5   Med: -2.31   Max: -2.04
Current: -2.04

During the past 5 years, the highest Beneish M-Score of Daiwa Cycle Co was -2.04. The lowest was -2.50. And the median was -2.31.

Daiwa Cycle Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Daiwa Cycle 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.

Daiwa Cycle Co Beneish M-Score Chart

Daiwa Cycle Co Annual Data
Trend Jan22 Jan23 Jan24 Jan25 Jan26
Beneish M-Score
0.00 0.00 -2.31 -2.50 -2.04

Daiwa Cycle Co Quarterly Data
Jan22 Jan23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -2.04 0.00

TSE:5888 vs BC, THO, PII: Beneish M-Score Comparison

For the Recreational Vehicles subindustry, Daiwa Cycle 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.

Daiwa Cycle Co Beneish M-Score vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Daiwa Cycle Co's Beneish M-Score distribution charts can be found below:

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


TSE:5888
18GF Score
Daiwa Cycle Co Ltd TSE:5888
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Daiwa Cycle 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 Daiwa Cycle 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 * 1.1633+0.528 * 1.0178+0.404 * 1.0255+0.892 * 1.1503+0.115 * 1.1291
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.022567-0.327 * 0.9558
=-2.04

* 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 (Jan26) TTM:Last Year (Jan25) TTM:
Total Receivables was 円647 Mil.
Revenue was 円21,107 Mil.
Gross Profit was 円9,200 Mil.
Total Current Assets was 円6,589 Mil.
Total Assets was 円9,585 Mil.
Property, Plant and Equipment(Net PPE) was 円1,318 Mil.
Depreciation, Depletion and Amortization(DDA) was 円191 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円3,178 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円949 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円732 Mil.
 Total Receivables was 円484 Mil.
Revenue was 円18,349 Mil.
Gross Profit was 円8,141 Mil.
Total Current Assets was 円6,127 Mil.
Total Assets was 円8,592 Mil.
Property, Plant and Equipment(Net PPE) was 円999 Mil.
Depreciation, Depletion and Amortization(DDA) was 円167 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円2,981 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 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)
=(647.052 / 21106.86) / (483.548 / 18349.324)
=0.030656 / 0.026352
=1.1633

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)
=(8141.117 / 18349.324) / (9200.404 / 21106.86)
=0.443674 / 0.435896
=1.0178

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 - (6588.548 + 1318.19) / 9584.519) / (1 - (6126.742 + 998.868) / 8592.292)
=0.175051 / 0.170697
=1.0255

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
=21106.86 / 18349.324
=1.1503

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))
=(166.525 / (166.525 + 998.868)) / (190.986 / (190.986 + 1318.19))
=0.142892 / 0.12655
=1.1291

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 / 21106.86) / (0 / 18349.324)
=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 + 3178.37) / 9584.519) / ((0 + 2981.103) / 8592.292)
=0.331615 / 0.346951
=0.9558

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
=(948.553 - 0 - 732.262) / 9584.519
=0.022567

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.

Daiwa Cycle Co has a M-score of -2.04 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 -2.04 mean?
Daiwa Cycle Co (TSE:5888) has a Beneish M-Score of -2.04 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Daiwa Cycle Co and its competitors. According to the industry distribution chart, Daiwa Cycle Co ranks #1039 out of 1274 companies in the Vehicles & Parts industry, placing it in the top 81.6%.
Is Daiwa Cycle Co's Beneish M-Score too high?
Daiwa Cycle Co's current Beneish M-Score is -2.04. Based on the distribution chart, Daiwa Cycle Co ranks #1039 out of 1274 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Daiwa Cycle Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Cycle Co's Beneish M-Score compare to BC and THO?
According to the Vehicles & Parts industry distribution chart, Daiwa Cycle Co ranks #1039 out of 1274 companies for Beneish M-Score. This places Daiwa Cycle 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 Vehicles & Parts company?
A good Beneish M-Score depends on the Vehicles & Parts 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 Daiwa Cycle Co and its competitors. Daiwa Cycle Co's current Beneish M-Score is -2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Cycle Co stock overvalued right now?
Daiwa Cycle Co (TSE:5888) has a current Beneish M-Score of -2.04. The current Beneish M-Score is -2.04. Daiwa Cycle Co's overall GF Score™ is 18/100. 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 Daiwa Cycle Co (TSE:5888), the current Beneish M-Score is -2.04 as of Jun. 28, 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.

Daiwa Cycle Co Business Description

Address 1-12-38 Esaka-cho, 5th floor, Esaka Soliton Building, Suita-shi, Osaka, JPN, 564-0063
Daiwa Cycle Co Ltd is a specialty retail company that operates a chain of bicycle stores. The Company is engaged in the Sales of bicycles, bicycle parts and accessories as well as the provision of bicycle maintenance and repair. The company distributes its products and services directly to consumers through its directly managed physical locations, franchise partnerships, and e-commerce platforms.
18GF Score

Get the complete analysis for TSE:5888

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

円2,993.00
Price