Shinko (TSE:7120) Beneish M-Score: -1.52 (As of Jul. 17, 2026)

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TSE:7120 Shinko Inc TSE:7120
85 GF Score
Price 円1,092.00
GF Value 円1,029.93
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Shinko Beneish M-Score?

Shinko TSE:7120 +2.15% 85 Beneish M-Score is -1.52 as of Jul. 17, 2026. GuruFocus rates TSE:7120 with a GF Score™ of 85/100 and a GF Value™ of 円1,029.93 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,628 Software companies, Shinko ranks worse than 84.74% 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 -1.52 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSE:7120' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Med: -2.24   Max: -1.52
Current: -1.52

During the past 6 years, the highest Beneish M-Score of Shinko was -1.52. The lowest was -3.02. And the median was -2.24.

Shinko Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Shinko'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.

Shinko Beneish M-Score Chart

Shinko Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial 0.00 -1.66 -3.02 -2.82 -1.52

Shinko Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only -3.02 0.00 -2.82 0.00 -1.52

TSE:7120 vs IBM, ACN, FISV: Beneish M-Score Comparison

For the Information Technology Services subindustry, Shinko'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.

Shinko Beneish M-Score vs Software Industry

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

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


TSE:7120
85GF Score
Shinko Inc TSE:7120
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shinko 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 Shinko 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 * 1.3955+0.528 * 1.0247+0.404 * 0.7809+0.892 * 1.1467+0.115 * 1.0258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.12671-0.327 * 1.1817
=-1.52

* 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4,829 Mil.
Revenue was 円19,384 Mil.
Gross Profit was 円4,502 Mil.
Total Current Assets was 円7,392 Mil.
Total Assets was 円8,769 Mil.
Property, Plant and Equipment(Net PPE) was 円298 Mil.
Depreciation, Depletion and Amortization(DDA) was 円106 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円4,707 Mil.
Long-Term Debt & Capital Lease Obligation was 円376 Mil.
Net Income was 円675 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-436 Mil.
 Total Receivables was 円3,018 Mil.
Revenue was 円16,904 Mil.
Gross Profit was 円4,023 Mil.
Total Current Assets was 円5,062 Mil.
Total Assets was 円6,370 Mil.
Property, Plant and Equipment(Net PPE) was 円305 Mil.
Depreciation, Depletion and Amortization(DDA) was 円112 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円3,064 Mil.
Long-Term Debt & Capital Lease Obligation was 円61 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)
=(4828.582 / 19383.783) / (3017.639 / 16904.476)
=0.249104 / 0.178511
=1.3955

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)
=(4023.332 / 16904.476) / (4502.42 / 19383.783)
=0.238004 / 0.232278
=1.0247

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 - (7392.076 + 297.997) / 8768.702) / (1 - (5061.674 + 304.627) / 6369.629)
=0.123009 / 0.157517
=0.7809

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
=19383.783 / 16904.476
=1.1467

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))
=(111.968 / (111.968 + 304.627)) / (105.794 / (105.794 + 297.997))
=0.268769 / 0.262002
=1.0258

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 / 19383.783) / (0 / 16904.476)
=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)
=((376.068 + 4706.927) / 8768.702) / ((60.721 + 3063.861) / 6369.629)
=0.579675 / 0.490544
=1.1817

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
=(675.152 - 0 - -435.933) / 8768.702
=0.12671

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.

Shinko has a M-score of -1.52 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 -1.52 mean?
Shinko (TSE:7120) has a Beneish M-Score of -1.52 as of Jul. 17, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shinko and its competitors. According to the industry distribution chart, Shinko ranks #2227 out of 2628 companies in the Software industry, placing it in the top 84.7%.
Is Shinko's Beneish M-Score too high?
Shinko's current Beneish M-Score is -1.52. Based on the distribution chart, Shinko ranks #2227 out of 2628 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Shinko has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shinko's Beneish M-Score compare to IBM and ACN?
According to the Software industry distribution chart, Shinko ranks #2227 out of 2628 companies for Beneish M-Score. This places Shinko 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 Shinko and its competitors. Shinko's current Beneish M-Score is -1.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinko stock overvalued right now?
Based on GuruFocus' analysis, Shinko (TSE:7120) is currently considered Fairly Valued. The stock's GF Value™ is 円1,029.93, compared to a current price of 円1,092.00 — trading 6% above its estimated fair value. The current Beneish M-Score is -1.52. Shinko's overall GF Score™ is 85/100 with 3 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 Shinko (TSE:7120), the current Beneish M-Score is -1.52 as of Jul. 17, 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 Shinko (TSE:7120) Overvalued in 2026?

Based on GuruFocus' analysis, Shinko stock appears to be overvalued. The current stock price of 円1,092.00 is trading 6% above its estimated GF Value™ of 円1,029.93. GuruFocus considers Shinko to be Fairly Valued.

Key valuation signals for TSE:7120:

  • Beneish M-Score: -1.52
  • GF Value™: 円1,029.93 vs. price of 円1,092.00 (6% above fair value)
  • GF Score™: 85/100 with 3 warning signs

No single metric tells the full story. See the TSE:7120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shinko Business Description

Address 8F CS Tower, 5-20-8 Asakusabashi, Taito-ku, Tokyo, JPN, 111-0053
Shinko Inc is engaged in providing maintenance services for IT equipment and Staffing services. The company's services and products include; Maintenance services, human resource services, Introduction design and installation development services, and Network security-related products. The Maintenance services include Onsite maintenance service, Help desk service, Remote monitoring service, and call center service. The human resource services include an Engineer dispatch service and a Business contract. The Introduction design and installation development services include Network design and construction, Wireless environment construction, and Communication system construction.
85GF Score

Get the complete analysis for TSE:7120

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

円1,092.00
Price
円1,029.93
GF Value