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, Ventia Services Group's Probability of Financial Distress (%) is 0.02%.
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.
Ventia Services Group (NZSE:VNT) 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.
Ventia Services Group Probability of Financial Distress (%) Related Terms
Ventia Services Group Probability of Financial Distress (%) Competitor Comparison
For the Infrastructure Operations subindustry, Ventia 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.
Ventia Services Group Probability of Financial Distress (%) vs Construction Industry
For the Construction industry and Industrials sector, Ventia Services Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Ventia Services Group's Probability of Financial Distress (%) falls into.
Ventia 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
=
-8.57
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 0.02% mean?
Ventia Services Group (NZSE:VNT) has a Probability of Financial Distress (%) of 0.02% as of Jul. 11, 2026.
Is Ventia Services Group's Probability of Financial Distress (%) too high?
Ventia Services Group's current Probability of Financial Distress (%) is 0.02%. Overall, Ventia Services Group has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ventia Services Group's Probability of Financial Distress (%) compare to competitors?
Ventia Services Group's Probability of Financial Distress (%) of 0.02% can be compared against companies in the Construction 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 Construction company?
A good Probability of Financial Distress (%) depends on the Construction 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. Ventia Services Group's current Probability of Financial Distress (%) is 0.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ventia Services Group stock overvalued right now?
Based on GuruFocus' analysis, Ventia Services Group (NZSE:VNT) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$5.13, compared to a current price of NZ$7.03 — trading 37% above its estimated fair value. The current Probability of Financial Distress (%) is 0.02%. Ventia Services Group's overall GF Score™ is 59/100 with 3 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 Ventia Services Group (NZSE:VNT), the current Probability of Financial Distress (%) is 0.02% as of Jul. 11, 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 Ventia Services Group (NZSE:VNT) Overvalued in 2026?
Based on GuruFocus' analysis, Ventia Services Group stock appears to be overvalued.
The current stock price of NZ$7.03 is trading 37% above its estimated GF Value™ of NZ$5.13.
GuruFocus considers Ventia Services Group to be Significantly Overvalued.
Key valuation signals for NZSE:VNT:
Probability of Financial Distress (%): 0.02%
GF Value™: NZ$5.13 vs. price of NZ$7.03 (37% above fair value)
No single metric tells the full story. See the NZSE:VNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
While Ventia is not the largest player with an estimated sub 10% share of addressable markets, it is nonetheless a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.
59GF Score
Get the complete analysis for NZSE:VNT
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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