Aichi Financial Group (TSE:7389) Beneish M-Score: -2.47 (As of Jun. 28, 2026)


TSE:7389 Aichi Financial Group Inc TSE:7389
34 GF Score
Price 円1,384.00
GF Value 円668.96
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is Aichi Financial Group Beneish M-Score?

Aichi Financial Group TSE:7389 +2.22% 34 Beneish M-Score is -2.47 as of Jun. 28, 2026. GuruFocus rates TSE:7389 with a GF Score™ of 34/100 and a GF Value™ of 円668.96 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,399 Banks companies, Aichi Financial Group ranks better than 64.26% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:7389' s Beneish M-Score Range Over the Past 10 Years
Min: -2.47   Med: -2.42   Max: -2.36
Current: -2.47

During the past 4 years, the highest Beneish M-Score of Aichi Financial Group was -2.36. The lowest was -2.47. And the median was -2.42.

TSE:7389
34GF Score
Aichi Financial Group Inc TSE:7389
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aichi Financial Group 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 Aichi Financial Group 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+0.528 * 1+0.404 * 1.0005+0.892 * 1.1173+0.115 * 1.3377
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.022376-0.327 * 1.0945
=-2.47

* 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0 Mil.
Revenue was 円97,556 Mil.
Gross Profit was 円97,556 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円7,168,337 Mil.
Property, Plant and Equipment(Net PPE) was 円67,351 Mil.
Depreciation, Depletion and Amortization(DDA) was 円3,408 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円387,896 Mil.
Net Income was 円21,808 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円182,208 Mil.
 Total Receivables was 円0 Mil.
Revenue was 円87,312 Mil.
Gross Profit was 円87,312 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円6,799,701 Mil.
Property, Plant and Equipment(Net PPE) was 円67,061 Mil.
Depreciation, Depletion and Amortization(DDA) was 円4,618 Mil.
Selling, General, & Admin. Expense(SGA) was 円0 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円336,166 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)
=(0 / 97556) / (0 / 87312)
=0 / 0
=1

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)
=(87312 / 87312) / (97556 / 97556)
=1 / 1
=1

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 - (0 + 67351) / 7168337) / (1 - (0 + 67061) / 6799701)
=0.990604 / 0.990138
=1.0005

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
=97556 / 87312
=1.1173

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))
=(4618 / (4618 + 67061)) / (3408 / (3408 + 67351))
=0.064426 / 0.048163
=1.3377

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 / 97556) / (0 / 87312)
=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)
=((387896 + 0) / 7168337) / ((336166 + 0) / 6799701)
=0.054112 / 0.049438
=1.0945

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
=(21808 - 0 - 182208) / 7168337
=-0.022376

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.

Aichi Financial Group has a M-score of -2.47 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 -2.47 mean?
Aichi Financial Group (TSE:7389) has a Beneish M-Score of -2.47 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Aichi Financial Group and its competitors. According to the industry distribution chart, Aichi Financial Group ranks #500 out of 1399 companies in the Banks industry, placing it in the top 35.7%.
Is Aichi Financial Group's Beneish M-Score too high?
Aichi Financial Group's current Beneish M-Score is -2.47. Based on the distribution chart, Aichi Financial Group ranks #500 out of 1399 companies in the Banks industry, which is above the industry midpoint. Overall, Aichi Financial Group has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aichi Financial Group's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Aichi Financial Group ranks #500 out of 1399 companies for Beneish M-Score. This puts Aichi Financial Group in the upper 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 Banks company?
A good Beneish M-Score depends on the Banks 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 Aichi Financial Group and its competitors. Aichi Financial Group's current Beneish M-Score is -2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aichi Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Aichi Financial Group (TSE:7389) is currently considered Significantly Overvalued. The stock's GF Value™ is 円668.96, compared to a current price of 円1,384.00 — trading 106.9% above its estimated fair value. The current Beneish M-Score is -2.47. Aichi Financial Group's overall GF Score™ is 34/100 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 Aichi Financial Group (TSE:7389), the current Beneish M-Score is -2.47 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.

Is Aichi Financial Group (TSE:7389) Overvalued in 2026?

Based on GuruFocus' analysis, Aichi Financial Group stock appears to be overvalued. The current stock price of 円1,384.00 is trading 106.9% above its estimated GF Value™ of 円668.96. GuruFocus considers Aichi Financial Group to be Significantly Overvalued.

Key valuation signals for TSE:7389:

  • Beneish M-Score: -2.47
  • GF Value™: 円668.96 vs. price of 円1,384.00 (106.9% above fair value)
  • GF Score™: 34/100 with 1 warning sign

No single metric tells the full story. See the TSE:7389 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Aichi Financial Group Business Description

Address 3-14-12, Sakae, Naka-ku, Nagoya-shi, Aichi, JPN, 460-8678
Aichi Financial Group Inc is involved in the banking business. It provides banking products and services.
34GF Score

Get the complete analysis for TSE:7389

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

円1,384.00
Price
円668.96
GF Value