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, CASH Financial Services Group's Probability of Financial Distress (%) is 0.43%.
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.
CASH Financial Services Group (HKSE:00510) 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.
CASH Financial Services Group Probability of Financial Distress (%) Related Terms
HKSE:00510 vs MS, GS, SCHW: Probability of Financial Distress (%) Comparison
For the Capital Markets subindustry, CASH Financial Services Group'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.
CASH Financial Services Group Probability of Financial Distress (%) vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, CASH Financial Services Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where CASH Financial Services Group's Probability of Financial Distress (%) falls into.
CASH Financial Services Group 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
=
-5.45
The Probability of Financial Distress (%) (PFD) was then obtianed by:
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).
What does a Probability of Financial Distress (%) of 0.43% mean?
CASH Financial Services Group (HKSE:00510) has a Probability of Financial Distress (%) of 0.43% as of Jun. 25, 2026.
Is CASH Financial Services Group's Probability of Financial Distress (%) too high?
CASH Financial Services Group's current Probability of Financial Distress (%) is 0.43%. Overall, CASH Financial Services Group has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CASH Financial Services Group's Probability of Financial Distress (%) compare to MS and GS?
CASH Financial Services Group's Probability of Financial Distress (%) of 0.43% can be compared against companies in the Capital Markets 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 a Capital Markets company?
A good Probability of Financial Distress (%) depends on the Capital Markets 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. CASH Financial Services Group's current Probability of Financial Distress (%) is 0.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CASH Financial Services Group stock overvalued right now?
Based on GuruFocus' analysis, CASH Financial Services Group (HKSE:00510) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.63 — trading 152% above its estimated fair value. The current Probability of Financial Distress (%) is 0.43%. CASH Financial Services Group's overall GF Score™ is 32/100 with 5 warning signs to review. 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 CASH Financial Services Group (HKSE:00510), the current Probability of Financial Distress (%) is 0.43% as of Jun. 25, 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 CASH Financial Services Group (HKSE:00510) Overvalued in 2026?
Based on GuruFocus' analysis, CASH Financial Services Group stock appears to be overvalued.
The current stock price of HK$0.63 is trading 152% above its estimated GF Value™ of HK$0.25.
GuruFocus considers CASH Financial Services Group to be Significantly Overvalued.
Key valuation signals for HKSE:00510:
Probability of Financial Distress (%): 0.43%
GF Value™: HK$0.25 vs. price of HK$0.63 (152% above fair value)
No single metric tells the full story. See the HKSE:00510 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CASH Financial Services Group Business Description
CASH Financial Services Group Ltd is engaged in the provision of online and traditional brokerage of securities, futures and options as well as general and life insurance, mutual funds and mandatory provident fund products; proprietary trading of equity securities and derivatives; provision of margin financing and money lending services; and provision of investment management services. Its segments include Financial services, and Investment management. It derives revenue from Broking services, Wealth management services, Investment management services, Handling and other services. Geographically, the company derives maximum revenue from Hong Kong, and also has its presence in the PRC.
32GF Score
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Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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