Towa Bank (TSE:8558) Beneish M-Score: -2.45 (As of Jun. 26, 2026)


TSE:8558 Towa Bank Ltd TSE:8558
51 GF Score
Price 円1,439.00
GF Value 円844.35
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Towa Bank Beneish M-Score?

Towa Bank TSE:8558 +2.06% 51 Beneish M-Score is -2.45 as of Jun. 26, 2026. GuruFocus rates TSE:8558 with a GF Score™ of 51/100 and a GF Value™ of 円844.35 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,397 Banks companies, Towa Bank ranks better than 60.77% 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:8558' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.47   Max: -1.99
Current: -2.45

During the past 13 years, the highest Beneish M-Score of Towa Bank was -1.99. The lowest was -2.97. And the median was -2.47.

TSE:8558
51GF Score
Towa Bank Ltd TSE:8558
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Towa 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 Towa 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 * 1.1354+0.115 * 0.9157
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.917+4.679 * -0.010713-0.327 * 1.1388
=-2.45

* 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33,779 Mil.
Gross Profit was 円33,779 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円2,416,250 Mil.
Property, Plant and Equipment(Net PPE) was 円23,770 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,268 Mil.
Selling, General, & Admin. Expense(SGA) was 円21,314 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円140,300 Mil.
Net Income was 円-24,499 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円1,386 Mil.
 Total Receivables was 円0 Mil.
Revenue was 円29,751 Mil.
Gross Profit was 円29,751 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円2,382,753 Mil.
Property, Plant and Equipment(Net PPE) was 円23,884 Mil.
Depreciation, Depletion and Amortization(DDA) was 円2,070 Mil.
Selling, General, & Admin. Expense(SGA) was 円20,471 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円121,490 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 / 33779) / (0 / 29751)
=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)
=(29751 / 29751) / (33779 / 33779)
=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 + 23770) / 2416250) / (1 - (0 + 23884) / 2382753)
=0.990162 / 0.989976
=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
=33779 / 29751
=1.1354

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))
=(2070 / (2070 + 23884)) / (2268 / (2268 + 23770))
=0.079756 / 0.087103
=0.9157

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)
=(21314 / 33779) / (20471 / 29751)
=0.630984 / 0.688078
=0.917

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)
=((140300 + 0) / 2416250) / ((121490 + 0) / 2382753)
=0.058065 / 0.050987
=1.1388

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
=(-24499 - 0 - 1386) / 2416250
=-0.010713

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.

Towa Bank has a M-score of -2.45 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 -2.45 mean?
Towa Bank (TSE:8558) has a Beneish M-Score of -2.45 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Towa Bank and its competitors. According to the industry distribution chart, Towa Bank ranks #548 out of 1397 companies in the Banks industry, placing it in the top 39.2%.
Is Towa Bank's Beneish M-Score too high?
Towa Bank's current Beneish M-Score is -2.45. Based on the distribution chart, Towa Bank ranks #548 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, Towa Bank has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Towa Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Towa Bank ranks #548 out of 1397 companies for Beneish M-Score. This puts Towa Bank 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 Towa Bank and its competitors. Towa Bank's current Beneish M-Score is -2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towa Bank stock overvalued right now?
Based on GuruFocus' analysis, Towa Bank (TSE:8558) is currently considered Significantly Overvalued. The stock's GF Value™ is 円844.35, compared to a current price of 円1,439.00 — trading 70.4% above its estimated fair value. The current Beneish M-Score is -2.45. Towa Bank's overall GF Score™ is 51/100 with 5 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 Towa Bank (TSE:8558), the current Beneish M-Score is -2.45 as of Jun. 26, 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 Towa Bank (TSE:8558) Overvalued in 2026?

Based on GuruFocus' analysis, Towa Bank stock appears to be overvalued. The current stock price of 円1,439.00 is trading 70.4% above its estimated GF Value™ of 円844.35. GuruFocus considers Towa Bank to be Significantly Overvalued.

Key valuation signals for TSE:8558:

  • Beneish M-Score: -2.45
  • GF Value™: 円844.35 vs. price of 円1,439.00 (70.4% above fair value)
  • GF Score™: 51/100 with 5 warning signs

No single metric tells the full story. See the TSE:8558 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Towa Bank Business Description

Address 2-12-6 Hon-machi, Maebashi, JPN, 371-0023
Towa Bank Ltd is a regional bank that provides banking and financial services. Its banking services includes deposits, loans, and foreign exchange transaction.
51GF Score

Get the complete analysis for TSE:8558

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

円1,439.00
Price
円844.35
GF Value