MS&AD Insurance Group Holdings (TSE:8725) Beneish M-Score: -1.35 (As of Aug. 29, 2026)

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TSE:8725 MS&AD Insurance Group Holdings Inc TSE:8725
55 GF Score
Price 円5,114.00
! 5 Warning Signs
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What is MS&AD Insurance Group Holdings Beneish M-Score?

MS&AD Insurance Group Holdings TSE:8725 +1.23% 55 Beneish M-Score is -1.35 as of Aug. 29, 2026. GuruFocus rates TSE:8725 with a GF Score™ of 55/100. The stock has 5 warning signs investors should review. Among 404 Insurance companies, MS&AD Insurance Group Holdings ranks worse than 91.34% 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.

Warning Sign:

Beneish M-Score -1.35 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for MS&AD Insurance Group Holdings's Beneish M-Score or its related term are showing as below:

TSE:8725' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.55   Max: -1.35
Current: -1.35

During the past 13 years, the highest Beneish M-Score of MS&AD Insurance Group Holdings was -1.35. The lowest was -3.51. And the median was -2.55.

TSE:8725
55GF Score
MS&AD Insurance Group Holdings Inc TSE:8725
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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MS&AD Insurance Group Holdings 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 MS&AD Insurance Group Holdings 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 * 3.3001+0.528 * 1+0.404 * 1.0018+0.892 * 1.1432+0.115 * 1.0266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9021+4.679 * -0.203042-0.327 * 1.549
=-1.35

* 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42,532 Mil.
Revenue was 円14,935,359 Mil.
Gross Profit was 円14,935,359 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円28,640,815 Mil.
Property, Plant and Equipment(Net PPE) was 円447,859 Mil.
Depreciation, Depletion and Amortization(DDA) was 円115,718 Mil.
Selling, General, & Admin. Expense(SGA) was 円872,531 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円998,406 Mil.
Net Income was 円787,339 Mil.
Gross Profit was 円5,840,007 Mil.
Cash Flow from Operations was 円762,608 Mil.
 Total Receivables was 円11,274 Mil.
Revenue was 円13,064,487 Mil.
Gross Profit was 円13,064,487 Mil.
Total Current Assets was 円0 Mil.
Total Assets was 円26,241,298 Mil.
Property, Plant and Equipment(Net PPE) was 円456,461 Mil.
Depreciation, Depletion and Amortization(DDA) was 円121,917 Mil.
Selling, General, & Admin. Expense(SGA) was 円846,012 Mil.
Total Current Liabilities was 円0 Mil.
Long-Term Debt & Capital Lease Obligation was 円590,565 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)
=(42532 / 14935359) / (11274 / 13064487)
=0.002848 / 0.000863
=3.3001

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)
=(13064487 / 13064487) / (14935359 / 14935359)
=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 + 447859) / 28640815) / (1 - (0 + 456461) / 26241298)
=0.984363 / 0.982605
=1.0018

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
=14935359 / 13064487
=1.1432

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))
=(121917 / (121917 + 456461)) / (115718 / (115718 + 447859))
=0.210791 / 0.205328
=1.0266

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)
=(872531 / 14935359) / (846012 / 13064487)
=0.05842 / 0.064757
=0.9021

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)
=((998406 + 0) / 28640815) / ((590565 + 0) / 26241298)
=0.03486 / 0.022505
=1.549

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
=(787339 - 5840007 - 762608) / 28640815
=-0.203042

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.

MS&AD Insurance Group Holdings has a M-score of -1.35 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 -1.35 mean?
MS&AD Insurance Group Holdings (TSE:8725) has a Beneish M-Score of -1.35 as of Aug. 29, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on MS&AD Insurance Group Holdings and its competitors. According to the industry distribution chart, MS&AD Insurance Group Holdings ranks #369 out of 404 companies in the Insurance industry, placing it in the top 91.3%.
Is MS&AD Insurance Group Holdings' Beneish M-Score too high?
MS&AD Insurance Group Holdings' current Beneish M-Score is -1.35. Based on the distribution chart, MS&AD Insurance Group Holdings ranks #369 out of 404 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, MS&AD Insurance Group Holdings has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does MS&AD Insurance Group Holdings' Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, MS&AD Insurance Group Holdings ranks #369 out of 404 companies for Beneish M-Score. This places MS&AD Insurance Group Holdings 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 MS&AD Insurance Group Holdings and its competitors. MS&AD Insurance Group Holdings's current Beneish M-Score is -1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MS&AD Insurance Group Holdings stock overvalued right now?
MS&AD Insurance Group Holdings (TSE:8725) has a current Beneish M-Score of -1.35. The current Beneish M-Score is -1.35. MS&AD Insurance Group Holdings' overall GF Score™ is 55/100 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 MS&AD Insurance Group Holdings (TSE:8725), the current Beneish M-Score is -1.35 as of Aug. 29, 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.

MS&AD Insurance Group Holdings Business Description

Address Yaesu First Financial Building, Yaesu 1-3-7, Chuo-ku, Tokyo, JPN, 103-0028
MS&AD is Japan's largest domestic property and casualty insurer by market share, trailing Tokio Marine HCC in global scale. Domestically, it maintains a solid second-tier life presence. Overseas, MS&AD holds a dominant, profitable retail footprint in the Association of Southeast Asian Nations and is aggressively pivoting to US specialty lines via a milestone investment in W.R. Berkley, supported by MS Amlin's successful turnaround in global specialty markets.Domestically, MS&AD leverages deep corporate ties with Mitsui and Sumitomo, alongside an exclusive Toyota partnership that provides unparalleled advantages in capturing auto insurance customers and building advanced telematics data funnels.
55GF Score

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

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