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Owens Realty Mortgage (Owens Realty Mortgage) Altman Z-Score : 7.81 (As of Apr. 26, 2024)


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What is Owens Realty Mortgage Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Owens Realty Mortgage has a Altman Z-Score of 7.81, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Owens Realty Mortgage's Altman Z-Score or its related term are showing as below:


Owens Realty Mortgage Altman Z-Score Historical Data

The historical data trend for Owens Realty Mortgage's Altman Z-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.

* Premium members only.

Owens Realty Mortgage Altman Z-Score Chart

Owens Realty Mortgage Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Altman Z-Score
Get a 7-Day Free Trial 1.80 1.42 3.04 2.70 6.96

Owens Realty Mortgage Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
Altman Z-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 2.70 3.52 2.06 2.68 6.96

Competitive Comparison of Owens Realty Mortgage's Altman Z-Score

For the REIT - Office subindustry, Owens Realty Mortgage's Altman Z-Score, along with its competitors' market caps and Altman Z-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.


Owens Realty Mortgage's Altman Z-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Owens Realty Mortgage's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Owens Realty Mortgage's Altman Z-Score falls into.



Owens Realty Mortgage Altman Z-Score Calculation

Altman 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.

Owens Realty Mortgage's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.8418+1.4*0.2418+3.3*0.0458+0.6*10.4173+1.0*0.0614
=7.81

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2018:
Total Assets was $209.07 Mil.
Total Current Assets was $180.92 Mil.
Total Current Liabilities was $4.91 Mil.
Retained Earnings was $50.56 Mil.
Pre-Tax Income was 2.071 + 2.4 + 2.325 + 0.653 = $7.45 Mil.
Interest Expense was -0.3 + -0.711 + -0.587 + -0.536 = $-2.13 Mil.
Revenue was 3.736 + 4.724 + 4.346 + 0.032 = $12.84 Mil.
Market Cap (Today) was $184.50 Mil.
Total Liabilities was $17.71 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(180.917 - 4.912)/209.07
=0.8418

X2=Retained Earnings/Total Assets
=50.562/209.07
=0.2418

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(7.449 - -2.134)/209.07
=0.0458

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=184.500/17.711
=10.4173

X5=Revenue/Total Assets
=12.838/209.07
=0.0614

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Owens Realty Mortgage has a Altman Z-Score of 7.81 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Owens Realty Mortgage  (AMEX:ORM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Owens Realty Mortgage Altman Z-Score Related Terms

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Owens Realty Mortgage (Owens Realty Mortgage) Business Description

Traded in Other Exchanges
N/A
Address
2221 Olympic Boulevard, Walnut Creek, CA, USA, 94595
Owens Realty Mortgage Inc is a US-based specialty finance company which focuses on the origination, investment, and management of commercial real estate loans primarily in the Western U.S. It is engaged in providing customized, short-term loans to small and middle-market investors and developers. The company also holds investments in real estate properties with the objective of providing investors with attractive current income and long-term shareholder value. It has three reportable business segments namely Commercial, Residential, and Land. The company is managed and advised by Owens Financial Group, Inc. Owens primary sources of revenue are interest income earned on loan investment portfolio and revenues which are generated from its operating real estate assets.
Executives
Gilbert E Nathan director C/O EMERGENT CAPITAL, INC., 5355 TOWN CENTER ROAD, SUITE 701, BOCA RATON FL 33486
Steven D Hovde director 1110 LAKE COOK ROAD, SUITE 165, BUFFALO GROVE IL 60089