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Sabien Technology Group (LSE:SNT) Financial Strength : 4 (As of Dec. 2023)


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What is Sabien Technology Group Financial Strength?

Sabien Technology Group has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Sabien Technology Group did not have earnings to cover the interest expense. Sabien Technology Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.13. As of today, Sabien Technology Group's Altman Z-Score is -6.10.


Competitive Comparison of Sabien Technology Group's Financial Strength

For the Specialty Industrial Machinery subindustry, Sabien Technology Group's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Sabien Technology Group's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sabien Technology Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sabien Technology Group's Financial Strength falls into.



Sabien Technology Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sabien Technology Group's Interest Expense for the months ended in Dec. 2023 was £-0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was £-0.37 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £0.05 Mil.

Sabien Technology Group's Interest Coverage for the quarter that ended in Dec. 2023 is

Sabien Technology Group did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Sabien Technology Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.039 + 0.054) / 0.738
=0.13

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sabien Technology Group has a Z-score of -6.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -6.1 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Sabien Technology Group  (LSE:SNT) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Sabien Technology Group has the Financial Strength Rank of 4.


Sabien Technology Group Financial Strength Related Terms

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Sabien Technology Group (LSE:SNT) Business Description

Traded in Other Exchanges
N/A
Address
71-75 Shelton Street, London, GBR, WC2H 9JQ
Sabien Technology Group PLC operates in energy efficiency products. It designs, manufactures, and sells commercial boiler and direct-fired hot water heater optimization controls predominantly in the United Kingdom. Its products include M2G boiler load optimization controller to improve the efficiency of each boiler and M1G direct fired hot water heater control technology to reduce energy costs and carbon emissions. Geographically, it derives a majority of its revenue from the United Kingdom.