1414 Degrees (ASX:14D) Probability of Financial Distress (%): 99.58% (As of Jun. 26, 2026)


What is 1414 Degrees Probability of Financial Distress (%)?

1414 Degrees ASX:14D -1.03% Probability of Financial Distress (%) is 99.58% as of Jun. 26, 2026. The stock has 2 warning signs investors should review.

Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, 1414 Degrees's Probability of Financial Distress (%) is 99.58%.

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

1414 Degrees  (ASX:14D) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

1414 Degrees Probability of Financial Distress (%) Related Terms

ASX:14D vs CEG, VST, NRG: Probability of Financial Distress (%) Comparison

For the Utilities - Independent Power Producers subindustry, 1414 Degrees's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.

1414 Degrees Probability of Financial Distress (%) vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, 1414 Degrees's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where 1414 Degrees's Probability of Financial Distress (%) falls into.


1414 Degrees Probability of Financial Distress (%) Calculation

Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.

The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:

LPFD= -20.12 * NIMTAAVG + 1.60 * TLMTA - 7.88 * EXRETAVG + 1.55 * SIGMA - 0.005 * RSIZE - 2.27 * CASHMTA + 0.070 * MB - 0.09 * PRICE -8.87
=5.48

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=99.58%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.

2. TLMTA = Total liabilities to Market Total Assets

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

4. EXRETAVG = Excess Return compared to the S&P 500

EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.

5. SIGMA = Standard Deviation of Daily Returns

For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).

6. RSIZE = Relative Size

RSIZE=log (Market Cap / Total Market Cap of S&P 500 companies)

7. MB = Market to Adjusted Book Equity Ratio

MB=Market Cap / Adjusted Book Equity
=Market Cap / (Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

What does a Probability of Financial Distress (%) of 99.58% mean?
1414 Degrees (ASX:14D) has a Probability of Financial Distress (%) of 99.58% as of Jun. 26, 2026.
Is 1414 Degrees' Probability of Financial Distress (%) too high?
1414 Degrees' current Probability of Financial Distress (%) is 99.58%.
How does 1414 Degrees' Probability of Financial Distress (%) compare to CEG and VST?
1414 Degrees' Probability of Financial Distress (%) of 99.58% can be compared against companies in the Utilities - Independent Power Producers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for an Utilities - Independent Power Producers company?
A good Probability of Financial Distress (%) depends on the Utilities - Independent Power Producers industry context. However, Probability of Financial Distress (%) 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 Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. 1414 Degrees's current Probability of Financial Distress (%) is 99.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 1414 Degrees stock overvalued right now?
1414 Degrees (ASX:14D) has a current Probability of Financial Distress (%) of 99.58%. The current Probability of Financial Distress (%) is 99.58%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For 1414 Degrees (ASX:14D), the current Probability of Financial Distress (%) is 99.58% 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.

1414 Degrees Business Description

Address 1 Watts Road, Western Plant, Door 1, Tonsley, Adelaide, SA, AUS, 5042
1414 Degrees Ltd is engaged in developing and commercializing its silicon-based thermal energy storage technology, SiBrick to provide industrial high-temperature heat from low-cost electricity and biogas. Its other products include the SiBox thermal energy storage system which uses SiBrick technology to store renewable electricity as latent heat; and SiPHyR, an integration between a fluid reactor technology and SiBrick to produce hydrogen and solid carbon. The company is also engaged in developing its Aurora Renewable Energy Precinct, a planned renewable energy park to produce, store, and deliver electricity.