Awa Bank (TSE:8388) Beneish M-Score: -2.33 (As of Jun. 27, 2026)


TSE:8388 Awa Bank Ltd TSE:8388
45 GF Score
Price 円7,070.00
GF Value 円3,436.54
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Awa Bank Beneish M-Score?

Awa Bank TSE:8388 +2.46% 45 Beneish M-Score is -2.33 as of Jun. 27, 2026. GuruFocus rates TSE:8388 with a GF Score™ of 45/100 and a GF Value™ of 円3,436.54 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,397 Banks companies, Awa Bank ranks worse than 62.92% 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:8388' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48   Med: -2.52   Max: -1.68
Current: -2.33

During the past 13 years, the highest Beneish M-Score of Awa Bank was -1.68. The lowest was -3.48. And the median was -2.52.

TSE:8388
45GF Score
Awa Bank Ltd TSE:8388
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Awa Bank 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 Awa Bank 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 * 1.0002+0.892 * 1.1755+0.115 * 1.0323
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8786+4.679 * 0.000467-0.327 * 1.0909
=-2.33

* 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82,838 Mil.
Gross Profit was 円82,838 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円4,171,990 Mil.
Property, Plant and Equipment(Net PPE) was 円39,290 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,914 Mil.
Selling, General, & Admin. Expense(SGA) was 円32,222 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円225,597 Mil.
Net Income was 円15,527 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円13,580 Mil.
 Total Receivables was 円0 Mil.
Revenue was 円70,472 Mil.
Gross Profit was 円70,472 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円4,024,901 Mil.
Property, Plant and Equipment(Net PPE) was 円38,515 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,956 Mil.
Selling, General, & Admin. Expense(SGA) was 円31,199 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円199,514 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 / 82838) / (0 / 70472)
=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)
=(70472 / 70472) / (82838 / 82838)
=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 + 39290) / 4171990) / (1 - (0 + 38515) / 4024901)
=0.990582 / 0.990431
=1.0002

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
=82838 / 70472
=1.1755

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))
=(2956 / (2956 + 38515)) / (2914 / (2914 + 39290))
=0.071279 / 0.069046
=1.0323

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)
=(32222 / 82838) / (31199 / 70472)
=0.388976 / 0.442715
=0.8786

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)
=((225597 + 0) / 4171990) / ((199514 + 0) / 4024901)
=0.054074 / 0.04957
=1.0909

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
=(15527 - 0 - 13580) / 4171990
=0.000467

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.

Awa Bank has a M-score of -2.33 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 -2.33 mean?
Awa Bank (TSE:8388) has a Beneish M-Score of -2.33 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Awa Bank and its competitors. According to the industry distribution chart, Awa Bank ranks #879 out of 1397 companies in the Banks industry, placing it in the top 62.9%.
Is Awa Bank's Beneish M-Score too high?
Awa Bank's current Beneish M-Score is -2.33. Based on the distribution chart, Awa Bank ranks #879 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, Awa Bank has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Awa Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Awa Bank ranks #879 out of 1397 companies for Beneish M-Score. This places Awa Bank 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 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 Awa Bank and its competitors. Awa Bank's current Beneish M-Score is -2.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Awa Bank stock overvalued right now?
Based on GuruFocus' analysis, Awa Bank (TSE:8388) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,436.54, compared to a current price of 円7,070.00 — trading 105.7% above its estimated fair value. The current Beneish M-Score is -2.33. Awa Bank's overall GF Score™ is 45/100 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 Awa Bank (TSE:8388), the current Beneish M-Score is -2.33 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 Awa Bank (TSE:8388) Overvalued in 2026?

Based on GuruFocus' analysis, Awa Bank stock appears to be overvalued. The current stock price of 円7,070.00 is trading 105.7% above its estimated GF Value™ of 円3,436.54. GuruFocus considers Awa Bank to be Significantly Overvalued.

Key valuation signals for TSE:8388:

  • Beneish M-Score: -2.33
  • GF Value™: 円3,436.54 vs. price of 円7,070.00 (105.7% above fair value)
  • GF Score™: 45/100 with 6 warning signs

No single metric tells the full story. See the TSE:8388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Awa Bank Business Description

Address 2-24-1 Nishisemba-cho, Tokushima-shi, Tokushima, JPN, 770-8601
Awa Bank Ltd is a Japan-based company that is principally engaged in commercial banking and leasing services. The commercial banking business offers services including deposit services, lending services, securities investment services, and exchange services. It also refers customers to the services provided by the company's subsidiaries, including business support services, management consulting services, credit card services, and credit guarantee services. The leasing business provides leasing services by Awagin Leasing Company Limited, a subsidiary of the company. The company generates the majority of revenue from the commercial banking business.
45GF Score

Get the complete analysis for TSE:8388

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

円7,070.00
Price
円3,436.54
GF Value