Arcs Co (TSE:9948) Beneish M-Score: -2.51 (As of Jun. 26, 2026)


TSE:9948 Arcs Co Ltd TSE:9948
83 GF Score
Price 円3,340.00
GF Value 円3,119.82
Valuation Fairly Valued
! 1 Warning Sign
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What is Arcs Co Beneish M-Score?

Arcs Co TSE:9948 +0.30% 83 Beneish M-Score is -2.51 as of Jun. 26, 2026. GuruFocus rates TSE:9948 with a GF Score™ of 83/100 and a GF Value™ of 円3,119.82 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,087 Retail - Cyclical companies, Arcs Co ranks worse than 55.38% 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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSE:9948' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83   Med: -2.5   Max: -2.33
Current: -2.51

During the past 13 years, the highest Beneish M-Score of Arcs Co was -2.33. The lowest was -2.83. And the median was -2.50.

Arcs Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Arcs 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.

Arcs Co Beneish M-Score Chart

Arcs Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.45 -2.41 -2.61 -2.64 -2.51

Arcs Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.98 -2.94 -2.90 -2.51

TSE:9948 vs DDS: Beneish M-Score Comparison

For the Department Stores subindustry, Arcs 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.

Arcs Co Beneish M-Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Arcs Co's Beneish M-Score distribution charts can be found below:

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


TSE:9948
83GF Score
Arcs Co Ltd TSE:9948
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arcs 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 Arcs Co 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 * 1.0554+0.528 * 0.9989+0.404 * 1.2416+0.892 * 1.0307+0.115 * 0.9832
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9644+4.679 * -0.04608-0.327 * 0.9887
=-2.51

* 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 (Feb26) TTM:Last Year (Feb25) TTM:
Total Receivables was 円7,593 Mil.
Revenue was 162186 + 151078 + 159399 + 154294 = 円626,957 Mil.
Gross Profit was 41420 + 38061 + 39722 + 38612 = 円157,815 Mil.
Total Current Assets was 円129,436 Mil.
Total Assets was 円300,714 Mil.
Property, Plant and Equipment(Net PPE) was 円143,406 Mil.
Depreciation, Depletion and Amortization(DDA) was 円10,525 Mil.
Selling, General, & Admin. Expense(SGA) was 円17,059 Mil.
Total Current Liabilities was 円73,654 Mil.
Long-Term Debt & Capital Lease Obligation was 円17,623 Mil.
Net Income was 3947 + 2785 + 2915 + 2798 = 円12,445 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 6135 + -2711 + 10715 + 12163 = 円26,302 Mil.
 Total Receivables was 円6,980 Mil.
Revenue was 158650 + 146894 + 153916 + 148824 = 円608,284 Mil.
Gross Profit was 40526 + 36919 + 38180 + 37314 = 円152,939 Mil.
Total Current Assets was 円116,286 Mil.
Total Assets was 円282,662 Mil.
Property, Plant and Equipment(Net PPE) was 円145,275 Mil.
Depreciation, Depletion and Amortization(DDA) was 円10,470 Mil.
Selling, General, & Admin. Expense(SGA) was 円17,162 Mil.
Total Current Liabilities was 円68,386 Mil.
Long-Term Debt & Capital Lease Obligation was 円18,394 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)
=(7593 / 626957) / (6980 / 608284)
=0.012111 / 0.011475
=1.0554

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)
=(152939 / 608284) / (157815 / 626957)
=0.251427 / 0.251716
=0.9989

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 - (129436 + 143406) / 300714) / (1 - (116286 + 145275) / 282662)
=0.092686 / 0.074651
=1.2416

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
=626957 / 608284
=1.0307

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))
=(10470 / (10470 + 145275)) / (10525 / (10525 + 143406))
=0.067225 / 0.068375
=0.9832

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)
=(17059 / 626957) / (17162 / 608284)
=0.027209 / 0.028214
=0.9644

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)
=((17623 + 73654) / 300714) / ((18394 + 68386) / 282662)
=0.303534 / 0.30701
=0.9887

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
=(12445 - 0 - 26302) / 300714
=-0.04608

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.

Arcs Co has a M-score of -2.51 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 -2.51 mean?
Arcs Co (TSE:9948) has a Beneish M-Score of -2.51 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Arcs Co and its competitors. According to the industry distribution chart, Arcs Co ranks #602 out of 1087 companies in the Retail - Cyclical industry, placing it in the top 55.4%.
Is Arcs Co's Beneish M-Score too high?
Arcs Co's current Beneish M-Score is -2.51. Based on the distribution chart, Arcs Co ranks #602 out of 1087 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Arcs Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcs Co's Beneish M-Score compare to DDS?
According to the Retail - Cyclical industry distribution chart, Arcs Co ranks #602 out of 1087 companies for Beneish M-Score. This places Arcs 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 Retail - Cyclical company?
A good Beneish M-Score depends on the Retail - Cyclical 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 Arcs Co and its competitors. Arcs Co's current Beneish M-Score is -2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcs Co stock overvalued right now?
Based on GuruFocus' analysis, Arcs Co (TSE:9948) is currently considered Fairly Valued. The stock's GF Value™ is 円3,119.82, compared to a current price of 円3,340.00 — trading 7.1% above its estimated fair value. The current Beneish M-Score is -2.51. Arcs Co's overall GF Score™ is 83/100 with 1 warning sign 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 Arcs Co (TSE:9948), the current Beneish M-Score is -2.51 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 Arcs Co (TSE:9948) Overvalued in 2026?

Based on GuruFocus' analysis, Arcs Co stock appears to be overvalued. The current stock price of 円3,340.00 is trading 7.1% above its estimated GF Value™ of 円3,119.82. GuruFocus considers Arcs Co to be Fairly Valued.

Key valuation signals for TSE:9948:

  • Beneish M-Score: -2.51
  • GF Value™: 円3,119.82 vs. price of 円3,340.00 (7.1% above fair value)
  • GF Score™: 83/100 with 1 warning sign

No single metric tells the full story. See the TSE:9948 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Arcs Co Business Description

Address 11-2-32, Minami 13-jo Nishi, Chuo-ku, Sapporo, JPN, 064-8610
Arcs Co Ltd is a Japan-based company principally engaged in the supermarket business. The company also operates other businesses through subsidiaries, including tourism, building maintenance, real estate leasing, property and casualty insurance, life insurance agency, wholesale, food manufacturing, industrial and general waste collection, and construction businesses. The group operates in a single segment related to retail.
83GF Score

Get the complete analysis for TSE:9948

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

円3,340.00
Price
円3,119.82
GF Value