Seven Industries Co (TSE:7896) Beneish M-Score: -2.36 (As of Jul. 17, 2026)

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Seven Industries Co Ltd TSE:7896

62 GF Score

Price 円507.00

GF Value 円498.50

Valuation Fairly Valued

6 Warning Signs

View Full Analysis

What is Seven Industries Co Beneish M-Score?

Seven Industries Co TSE:7896 -0.59% 62 Beneish M-Score is -2.36 as of Jul. 17, 2026. GuruFocus rates TSE:7896 with a GF Score™ of 62/100 and a GF Value™ of 円498.50 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,700 Construction companies, Seven Industries Co ranks worse than 58.76% 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:7896' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45 Med: -2.46 Max: -2.06
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Seven Industries Co was -2.06. The lowest was -3.45. And the median was -2.46.

Seven Industries Co Beneish M-Score Related Terms

Seven Industries Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Seven Industries 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.

Seven Industries Co Beneish M-Score Chart

Seven Industries Co Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.06

-2.49

-3.45

-2.47

-2.36

Seven Industries Co Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-3.45	0.00	-2.47	0.00	-2.36

TSE:7896 vs TT, JCI, CARR: Beneish M-Score Comparison

For the Building Products & Equipment subindustry, Seven Industries 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.

Seven Industries Co Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, Seven Industries Co's Beneish M-Score distribution charts can be found below:

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

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62GF Score

Seven Industries Co Ltd TSE:7896

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Seven Industries 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 Seven Industries Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9258

0.528 * 1.1091

0.404 * 1.304

0.892 * 1.0111

0.115 * 0.657

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0286

4.679 * 0.012513

0.327 * 1.0466

-2.36

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was 円2,943 Mil.
Revenue was 円15,589 Mil.
Gross Profit was 円2,094 Mil.
Total Current Assets was 円6,168 Mil.
Total Assets was 円10,949 Mil.
Property, Plant and Equipment(Net PPE) was 円4,353 Mil.
Depreciation, Depletion and Amortization(DDA) was 円236 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,145 Mil.
Total Current Liabilities was 円3,025 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,737 Mil.
Net Income was 円-127 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円-264 Mil.

Total Receivables was 円3,144 Mil.
Revenue was 円15,418 Mil.
Gross Profit was 円2,297 Mil.
Total Current Assets was 円6,782 Mil.
Total Assets was 円10,942 Mil.
Property, Plant and Equipment(Net PPE) was 円3,832 Mil.
Depreciation, Depletion and Amortization(DDA) was 円134 Mil.
Selling, General, & Admin. Expense(SGA) was 円1,101 Mil.
Total Current Liabilities was 円3,016 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,531 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)
	=	(2943 / 15589)	/	(3144 / 15418)
	=	0.188787	/	0.203917
	=	0.9258

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)
	=	(2297 / 15418)	/	(2094 / 15589)
	=	0.148982	/	0.134325
	=	1.1091

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 - (6168 + 4353) / 10949)	/	(1 - (6782 + 3832) / 10942)
	=	0.03909	/	0.029976
	=	1.304

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
	=	15589	/	15418
	=	1.0111

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))
	=	(134 / (134 + 3832))	/	(236 / (236 + 4353))
	=	0.033787	/	0.051427
	=	0.657

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)
	=	(1145 / 15589)	/	(1101 / 15418)
	=	0.073449	/	0.07141
	=	1.0286

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)
	=	((1737 + 3025) / 10949)	/	((1531 + 3016) / 10942)
	=	0.434926	/	0.415555
	=	1.0466

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
	=	(-127 - 0	-	-264)	/	10949
	=	0.012513

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.

Seven Industries Co has a M-score of -2.36 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 -2.36 mean?

Seven Industries Co (TSE:7896) has a Beneish M-Score of -2.36 as of Jul. 17, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Seven Industries Co and its competitors. According to the industry distribution chart, Seven Industries Co ranks #999 out of 1700 companies in the Construction industry, placing it in the top 58.8%.

Is Seven Industries Co's Beneish M-Score too high?

Seven Industries Co's current Beneish M-Score is -2.36. Based on the distribution chart, Seven Industries Co ranks #999 out of 1700 companies in the Construction industry, which is below the industry midpoint. Overall, Seven Industries Co has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Seven Industries Co's Beneish M-Score compare to TT and JCI?

According to the Construction industry distribution chart, Seven Industries Co ranks #999 out of 1700 companies for Beneish M-Score. This places Seven Industries 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 Construction company?

A good Beneish M-Score depends on the Construction 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 Seven Industries Co and its competitors. Seven Industries Co's current Beneish M-Score is -2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Seven Industries Co stock overvalued right now?

Based on GuruFocus' analysis, Seven Industries Co (TSE:7896) is currently considered Fairly Valued. The stock's GF Value™ is 円498.50, compared to a current price of 円507.00 — trading 1.7% above its estimated fair value. The current Beneish M-Score is -2.36. Seven Industries Co's overall GF Score™ is 62/100 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 Seven Industries Co (TSE:7896), the current Beneish M-Score is -2.36 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 Seven Industries Co (TSE:7896) Overvalued in 2026?

Based on GuruFocus' analysis, Seven Industries Co stock appears to be overvalued. The current stock price of 円507.00 is trading 1.7% above its estimated GF Value™ of 円498.50. GuruFocus considers Seven Industries Co to be Fairly Valued.

Key valuation signals for TSE:7896:

Beneish M-Score: -2.36
GF Value™: 円498.50 vs. price of 円507.00 (1.7% above fair value)
GF Score™: 62/100 with 6 warning signs

No single metric tells the full story. See the TSE:7896 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Seven Industries Co Business Description

Industry Industrials Construction

Comparable Companies TSE:5287 NGO:5386 TSE:9767 TSE:5271 TSE:5928 TSE:5380 SSE:1449 TSE:5997 TSE:1994 TSE:5900 TT JCI CARR XPAR:SGO TSE:6367 XSWX:GEBN LII MAIR DUB:KRX MAS

Address 1006 Makino, Gifu Prefecture, Minokamo, JPN, 505-0016

Website http://www.seven-gr.co.jp

Seven Industries Co Ltd is a Japan-based company offering Interior building materials and Wood structure business. It mainly produces and sells housing materials using laminated timber and other materials by item, as well as manages real estate rentals.

62GF Score

Get the complete analysis for TSE:7896

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

円507.00

Price

円498.50

GF Value

View TSE:7896 Analysis

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