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NSC Groupe (XPAR:ALNSC) Financial Strength : 7 (As of Dec. 2023)


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What is NSC Groupe Financial Strength?

NSC Groupe has the Financial Strength Rank of 7.

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.

NSC Groupe's Interest Coverage for the quarter that ended in Dec. 2023 was 8.00. NSC Groupe's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.22. As of today, NSC Groupe's Altman Z-Score is 1.88.


Competitive Comparison of NSC Groupe's Financial Strength

For the Specialty Industrial Machinery subindustry, NSC Groupe'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.


NSC Groupe's Financial Strength Distribution in the Industrial Products Industry

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

* The bar in red indicates where NSC Groupe's Financial Strength falls into.



NSC Groupe 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:

NSC Groupe's Interest Expense for the months ended in Dec. 2023 was €-0.45 Mil. Its Operating Income for the months ended in Dec. 2023 was €3.56 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €8.22 Mil.

NSC Groupe's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*3.56/-0.445
=8.00

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

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

NSC Groupe'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
=(9.85 + 8.219) / 80.714
=0.22

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.

NSC Groupe has a Z-score of 1.88, indicating it is in Grey Zones. This implies that NSC Groupe is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.88 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


NSC Groupe  (XPAR:ALNSC) 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.

NSC Groupe has the Financial Strength Rank of 7.


NSC Groupe Financial Strength Related Terms

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NSC Groupe (XPAR:ALNSC) Business Description

Traded in Other Exchanges
N/A
Address
170 Rue de la Republique, Guebwiller, FRA, 68500
NSC Groupe SA is a France-based company. It designs and manufactures machinery and equipment for the textile, foundry, energy and packaging industries. The company has three divisions: Packaging lines; Textile lines; and Foundry. It Textiles division, manufactures industrial machinery that produces yarns from natural and synthetic fibers and is engaged in developing integrated production lines for the production of textile fabrics in a continuous process.

NSC Groupe (XPAR:ALNSC) Headlines

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