Japan Display (TSE:6740) Beneish M-Score: -4.53 (As of Jun. 27, 2026)


TSE:6740 Japan Display Inc TSE:6740
25 GF Score
Price 円60.00
GF Value 円9.67
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Japan Display Beneish M-Score?

Japan Display TSE:6740 +9.09% 25 Beneish M-Score is -4.53 as of Jun. 27, 2026. GuruFocus rates TSE:6740 with a GF Score™ of 25/100 and a GF Value™ of 円9.67 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,404 Hardware companies, Japan Display ranks better than 97.13% 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 -4.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:6740' s Beneish M-Score Range Over the Past 10 Years
Min: -16.51   Med: -3.85   Max: -1.85
Current: -4.53

During the past 13 years, the highest Beneish M-Score of Japan Display was -1.85. The lowest was -16.51. And the median was -3.85.

Japan Display Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Japan Display'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.

Japan Display Beneish M-Score Chart

Japan Display Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.85 -2.60 -3.11 -3.99 -4.53

Japan Display Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.99 0.00 0.00 0.00 -4.53

TSE:6740 vs APH, GLW, TEL: Beneish M-Score Comparison

For the Electronic Components subindustry, Japan Display'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.

Japan Display Beneish M-Score vs Hardware Industry

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

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


TSE:6740
25GF Score
Japan Display Inc TSE:6740
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Japan Display 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 Japan Display 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 * 1.0503+0.528 * -2.6472+0.404 * 1.1028+0.892 * 0.7038+0.115 * 0.9407
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.027976-0.327 * 1.2202
=-4.53

* 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22,309 Mil.
Revenue was 円132,328 Mil.
Gross Profit was 円2,566 Mil.
Total Current Assets was 円81,039 Mil.
Total Assets was 円124,248 Mil.
Property, Plant and Equipment(Net PPE) was 円37,772 Mil.
Depreciation, Depletion and Amortization(DDA) was 円3,914 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円127,862 Mil.
Long-Term Debt & Capital Lease Obligation was 円0 Mil.
Net Income was 円-19,810 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-23,286 Mil.
 Total Receivables was 円30,179 Mil.
Revenue was 円188,012 Mil.
Gross Profit was 円-9,651 Mil.
Total Current Assets was 円100,156 Mil.
Total Assets was 円148,031 Mil.
Property, Plant and Equipment(Net PPE) was 円42,001 Mil.
Depreciation, Depletion and Amortization(DDA) was 円4,069 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円124,850 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)
=(22309 / 132328) / (30179 / 188012)
=0.168589 / 0.160516
=1.0503

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)
=(-9651 / 188012) / (2566 / 132328)
=-0.051332 / 0.019391
=-2.6472

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 - (81039 + 37772) / 124248) / (1 - (100156 + 42001) / 148031)
=0.043759 / 0.039681
=1.1028

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
=132328 / 188012
=0.7038

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))
=(4069 / (4069 + 42001)) / (3914 / (3914 + 37772))
=0.088322 / 0.093892
=0.9407

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 / 132328) / (0 / 188012)
=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 + 127862) / 124248) / ((0 + 124850) / 148031)
=1.029087 / 0.843404
=1.2202

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
=(-19810 - 0 - -23286) / 124248
=0.027976

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.

Japan Display has a M-score of -4.53 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 -4.53 mean?
Japan Display (TSE:6740) has a Beneish M-Score of -4.53 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Japan Display and its competitors. According to the industry distribution chart, Japan Display ranks #69 out of 2404 companies in the Hardware industry, placing it in the top 2.9%.
Is Japan Display's Beneish M-Score too high?
Japan Display's current Beneish M-Score is -4.53. Based on the distribution chart, Japan Display ranks #69 out of 2404 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Display has a GF Score™ of 25/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Display's Beneish M-Score compare to APH and GLW?
According to the Hardware industry distribution chart, Japan Display ranks #69 out of 2404 companies for Beneish M-Score. This places Japan Display in the top 3% 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 Hardware company?
A good Beneish M-Score depends on the Hardware 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 Japan Display and its competitors. Japan Display's current Beneish M-Score is -4.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Display stock overvalued right now?
Based on GuruFocus' analysis, Japan Display (TSE:6740) is currently considered Significantly Overvalued. The stock's GF Value™ is 円9.67, compared to a current price of 円60.00 — trading 520.5% above its estimated fair value. The current Beneish M-Score is -4.53. Japan Display's overall GF Score™ is 25/100 with 6 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 Japan Display (TSE:6740), the current Beneish M-Score is -4.53 as of Jun. 27, 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 Japan Display (TSE:6740) Overvalued in 2026?

Based on GuruFocus' analysis, Japan Display stock appears to be overvalued. The current stock price of 円60.00 is trading 520.5% above its estimated GF Value™ of 円9.67. GuruFocus considers Japan Display to be Significantly Overvalued.

Key valuation signals for TSE:6740:

  • Beneish M-Score: -4.53
  • GF Value™: 円9.67 vs. price of 円60.00 (520.5% above fair value)
  • GF Score™: 25/100 with 6 warning signs

No single metric tells the full story. See the TSE:6740 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Japan Display Business Description

Address Landic 2nd Building, 3-7-1, Nishi-shinbashi, Minato-ku, Tokyo, JPN, 105-0003
Japan Display Inc is engaged in the development, production, and sale of small and medium-sized display devices and related products. Its products are divided into two categories: Mobile Device and Automotive and Non-Mobile. The Mobile Device category includes displays for smartphones, tablets and mobile phone devices. The Automotive and Non-Mobile category includes displays for automotive applications, consumer electronics, and industrial devices as well as income from patents and other sources. The company's business operations span across Europe, Korea, China, Philippines, America, and Hong Kong.
25GF Score

Get the complete analysis for TSE:6740

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

円60.00
Price
円9.67
GF Value