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, Texas Mineral Resources's Probability of Financial Distress (%) is 0.13%.
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.
Competitive Comparison
For the Other Industrial Metals & Mining subindustry, Texas Mineral Resources'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.
Texas Mineral Resources Probability of Financial Distress (%) Distribution
For the Metals & Mining industry and Basic Materials sector, Texas Mineral Resources's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Texas Mineral Resources's Probability of Financial Distress (%) falls into.
Texas Mineral Resources 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 |
| = | -6.62 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.13% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*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
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
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
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Texas Mineral Resources (Texas Mineral Resources) Business Description
Traded in Other Exchanges
N/A
Address
539 El Paso Street, Sierra Blanca, TX, USA, 79851
Texas Mineral Resources Corp is an exploration-stage mining company. It is predominantly engaged in the business of acquisition, exploration, and development of mineral properties. The group focuses on the development of a metallurgical process to concentrate or otherwise extract the metals from the Round Top Projects. Its flagship property includes the Round Top rare earths-uranium-beryllium project covering approximately 900 acres in Hudspeth County, Texas; and prospecting permits covering 9,345 acres adjacent to the Round Top project.
Executives
| Cecil C Wall |
director |
3 RIVERWAY, STE. 1800, HOUSTON TX 77056 |
| Anthony G. Marchese |
director |
15 BADEAU AVENUE, SUMMIT X1 07901 |
| Lavern K Lund |
director |
5875 LANDERBROOK DRIVE, SUITE 220, CLEVELAND OH 44124 |
| Clark Moseley |
director |
PO BOX 2466, SIOUX FALLS SD 57101 |
| Kevin A. Francis |
director |
553 SAGE CIRCLE, HIGHLANDS RANCH CO 80126 |
| Peter Jr. Denetclaw |
director |
6040 SANTA CLARA DR, FARMINGTON NM 87402 |
| Chris Mathers |
officer: CFO |
7 COPANA PT., ROCKPORT TX 78382 |
| Daniel E Gorski |
director, officer: Chief Executive Officer |
7 COPANO PT. RD., ROCKPORT TX 78382 |
| Nicholas Pingitore |
director |
C/O TEXAS RARE EARTH RESOURCES CORP., 304 INVERNESS WAY SOUTH, SUITE 365, ENGLEWOOD CO 80112 |
| Sc Fundamental Llc |
director |
747 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10017 |
| Navajo Transitional Energy Company, Llc |
10 percent owner |
PO BOX 11, FARMINGTON NM 87499 |
| Edward A Collery |
other: Member of 10% owner group |
C/O SC FUNDAMENTAL LLC, 747 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10017 |
| Sc Fundamental Llc Employee Savings & Profit Sharing Plan |
10 percent owner |
C/O SC FUNDAMENTAL LLC, 747 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10017 |
| Peter M Collery |
director |
C/O SC FUNDAMENTAL LLC, 747 THIRD AVENUE 27TH FLOOR, NEW YORK NY 10017 |
| Neil H Koffler |
director |
C/O SC FUNDAMENTAL LLC, 747 THIRD AVENUE 27TH FLOOR, NEW YORK NY 10017 |
Texas Mineral Resources (Texas Mineral Resources) Headlines
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