Business Brain Showa Ota (TSE:9658) Beneish M-Score: -2.63 (As of Jun. 27, 2026)

What is Business Brain Showa Ota Beneish M-Score?

Business Brain Showa Ota TSE:9658 +1.53% 86 Beneish M-Score is -2.63 as of Jun. 27, 2026. GuruFocus rates TSE:9658 with a GF Score™ of 86/100 and a GF Value™ of 円954.69 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,634 Software companies, Business Brain Showa Ota ranks better than 56.07% 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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Business Brain Showa Ota's Beneish M-Score or its related term are showing as below:

TSE:9658' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.38 Max: -0.64
Current: -2.63

During the past 13 years, the highest Beneish M-Score of Business Brain Showa Ota was -0.64. The lowest was -2.92. And the median was -2.38.

Business Brain Showa Ota Beneish M-Score Related Terms

Business Brain Showa Ota Beneish M-Score Historical Data

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The historical data trend for Business Brain Showa Ota'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.

Business Brain Showa Ota Beneish M-Score Chart

Business Brain Showa Ota Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.11

-2.69

-0.64

-2.37

-2.63

Business Brain Showa Ota 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															-0.64	-2.38	-2.37	0.00	-2.63

TSE:9658 vs IBM, ACN, FISV: Beneish M-Score Comparison

For the Information Technology Services subindustry, Business Brain Showa Ota'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.

Business Brain Showa Ota Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Business Brain Showa Ota's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Business Brain Showa Ota's Beneish M-Score falls into.

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86GF Score

Business Brain Showa Ota Inc TSE:9658

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

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Business Brain Showa Ota 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 Business Brain Showa Ota 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 * 0.9666

0.528 * 0.9818

0.404 * 0.9392

0.892 * 1.0849

0.115 * 1.0647

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9916

4.679 * -0.03099

0.327 * 1.0902

-2.63

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was 円7,345 Mil.
Revenue was 円42,100 Mil.
Gross Profit was 円9,493 Mil.
Total Current Assets was 円20,523 Mil.
Total Assets was 円48,464 Mil.
Property, Plant and Equipment(Net PPE) was 円4,021 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,551 Mil.
Selling, General, & Admin. Expense(SGA) was 円6,180 Mil.
Total Current Liabilities was 円8,765 Mil.
Long-Term Debt & Capital Lease Obligation was 円2,687 Mil.
Net Income was 円2,987 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円4,489 Mil.

Total Receivables was 円7,004 Mil.
Revenue was 円38,804 Mil.
Gross Profit was 円8,590 Mil.
Total Current Assets was 円18,251 Mil.
Total Assets was 円45,322 Mil.
Property, Plant and Equipment(Net PPE) was 円3,253 Mil.
Depreciation, Depletion and Amortization(DDA) was 円1,370 Mil.
Selling, General, & Admin. Expense(SGA) was 円5,744 Mil.
Total Current Liabilities was 円7,940 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,884 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)
	=	(7345.281 / 42099.52)	/	(7004.097 / 38803.632)
	=	0.174474	/	0.180501
	=	0.9666

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)
	=	(8590.213 / 38803.632)	/	(9492.922 / 42099.52)
	=	0.221377	/	0.225488
	=	0.9818

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 - (20523.258 + 4021.124) / 48464.196)	/	(1 - (18250.96 + 3253.026) / 45322.298)
	=	0.493556	/	0.525532
	=	0.9392

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
	=	42099.52	/	38803.632
	=	1.0849

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))
	=	(1369.796 / (1369.796 + 3253.026))	/	(1550.711 / (1550.711 + 4021.124))
	=	0.296312	/	0.278312
	=	1.0647

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)
	=	(6179.79 / 42099.52)	/	(5744.116 / 38803.632)
	=	0.14679	/	0.14803
	=	0.9916

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)
	=	((2687.375 + 8764.682) / 48464.196)	/	((1883.508 + 7940.323) / 45322.298)
	=	0.236299	/	0.216755
	=	1.0902

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
	=	(2986.667 - 0	-	4488.572)	/	48464.196
	=	-0.03099

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.

Business Brain Showa Ota has a M-score of -2.63 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 -2.63 mean?

Business Brain Showa Ota (TSE:9658) has a Beneish M-Score of -2.63 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Business Brain Showa Ota and its competitors. According to the industry distribution chart, Business Brain Showa Ota ranks #1157 out of 2634 companies in the Software industry, placing it in the top 43.9%.

Is Business Brain Showa Ota's Beneish M-Score too high?

Business Brain Showa Ota's current Beneish M-Score is -2.63. Based on the distribution chart, Business Brain Showa Ota ranks #1157 out of 2634 companies in the Software industry, which is above the industry midpoint. Overall, Business Brain Showa Ota has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Business Brain Showa Ota's Beneish M-Score compare to IBM and ACN?

According to the Software industry distribution chart, Business Brain Showa Ota ranks #1157 out of 2634 companies for Beneish M-Score. This puts Business Brain Showa Ota 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 Software company?

A good Beneish M-Score depends on the Software 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 Business Brain Showa Ota and its competitors. Business Brain Showa Ota's current Beneish M-Score is -2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Business Brain Showa Ota stock overvalued right now?

Based on GuruFocus' analysis, Business Brain Showa Ota (TSE:9658) is currently considered Fairly Valued. The stock's GF Value™ is 円954.69, compared to a current price of 円993.00 — trading 4% above its estimated fair value. The current Beneish M-Score is -2.63. Business Brain Showa Ota's overall GF Score™ is 86/100 with 2 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 Business Brain Showa Ota (TSE:9658), the current Beneish M-Score is -2.63 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 Business Brain Showa Ota (TSE:9658) Overvalued in 2026?

Based on GuruFocus' analysis, Business Brain Showa Ota stock appears to be overvalued. The current stock price of 円993.00 is trading 4% above its estimated GF Value™ of 円954.69. GuruFocus considers Business Brain Showa Ota to be Fairly Valued.

Key valuation signals for TSE:9658:

Beneish M-Score: -2.63
GF Value™: 円954.69 vs. price of 円993.00 (4% above fair value)
GF Score™: 86/100 with 2 warning signs

No single metric tells the full story. See the TSE:9658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Business Brain Showa Ota Business Description

Industry Technology Software

Comparable Companies TSE:9640 TSE:4072 TSE:4709 TSE:4725 TSE:9739 TSE:3798 TSE:2359 TSE:3393 TSE:4258 TSE:8275 IBM ACN NSE:TCS NSE:INFY TSE:6702 TSE:6701 NSE:HCLTECH FISV XMAD:AMS CTSH

Address 1-1-1 Nishi-Shinbashi, Hibiya Fort Tower, 15th Floor, Minato-ku, Tokyo, JPN, 105-0003

Website http://www.bbs.co.jp

Business Brain Showa Ota Inc provides Consulting, System development, and Management services. The Group has two reportable segments: the Consulting and Systems Development Business and the Management Services (BPO) Business. It derives maximum revenue from Consulting and Systems Development Business.

86GF Score

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

円993.00

Price

円954.69

GF Value

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