Nihon Knowledge Co (TSE:5252) Probability of Financial Distress (%): 0.02% (As of Jun. 26, 2026)


TSE:5252 Nihon Knowledge Co Ltd TSE:5252
78 GF Score
Price 円737.00
GF Value 円544.01
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Nihon Knowledge Co Probability of Financial Distress (%)?

Nihon Knowledge Co TSE:5252 78 Probability of Financial Distress (%) is 0.02% as of Jun. 26, 2026. GuruFocus rates TSE:5252 with a GF Score™ of 78/100 and a GF Value™ of 円544.01 (Significantly Overvalued). The stock has 4 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, Nihon Knowledge Co'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.

Nihon Knowledge Co  (TSE:5252) 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.

Nihon Knowledge Co Probability of Financial Distress (%) Related Terms

TSE:5252 vs CRM, SHOP, UBER: Probability of Financial Distress (%) Comparison

For the Software - Application subindustry, Nihon Knowledge Co'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.

Nihon Knowledge Co Probability of Financial Distress (%) vs Software Industry

For the Software industry and Technology sector, Nihon Knowledge Co's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Nihon Knowledge Co's Probability of Financial Distress (%) falls into.


TSE:5252
78GF Score
Nihon Knowledge Co Ltd TSE:5252
Probability of Financial Distress (%) is just one metric. See GF Score™, valuation, warning signs, and more.
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Nihon Knowledge Co 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
=-8.64

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

PFD=1/(1 + e^(-LPFD))*100%
=0.02%

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 0.02% mean?
Nihon Knowledge Co (TSE:5252) has a Probability of Financial Distress (%) of 0.02% as of Jun. 26, 2026.
Is Nihon Knowledge Co's Probability of Financial Distress (%) too high?
Nihon Knowledge Co's current Probability of Financial Distress (%) is 0.02%. Overall, Nihon Knowledge Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Knowledge Co's Probability of Financial Distress (%) compare to CRM and SHOP?
Nihon Knowledge Co's Probability of Financial Distress (%) of 0.02% can be compared against companies in the Software 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 Software company?
A good Probability of Financial Distress (%) depends on the Software 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. Nihon Knowledge Co'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 Nihon Knowledge Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Knowledge Co (TSE:5252) is currently considered Significantly Overvalued. The stock's GF Value™ is 円544.01, compared to a current price of 円737.00 — trading 35.5% above its estimated fair value. The current Probability of Financial Distress (%) is 0.02%. Nihon Knowledge Co's overall GF Score™ is 78/100 with 4 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 Nihon Knowledge Co (TSE:5252), the current Probability of Financial Distress (%) is 0.02% 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.

Is Nihon Knowledge Co (TSE:5252) Overvalued in 2026?

Based on GuruFocus' analysis, Nihon Knowledge Co stock appears to be overvalued. The current stock price of 円737.00 is trading 35.5% above its estimated GF Value™ of 円544.01. GuruFocus considers Nihon Knowledge Co to be Significantly Overvalued.

Key valuation signals for TSE:5252:

  • Probability of Financial Distress (%): 0.02%
  • GF Value™: 円544.01 vs. price of 円737.00 (35.5% above fair value)
  • GF Score™: 78/100 with 4 warning signs

No single metric tells the full story. See the TSE:5252 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nihon Knowledge Co Business Description

Address JS Building 9th Floor, 3-19-5 Kotobuki, Taito-ku, Tokyo, JPN, 111-0042
Nihon Knowledge Co Ltd is a comprehensive ICT service company that provides quality and test technology, development, and security products with a thorough user orientation. The company's services include verification services, Development services, and consultation services. The verification services include Resolving software verification issues through a track record of numerous projects and accumulation of know-how. The development services include management systems for steel wholesalers and processing industries and others.
78GF Score

Get the complete analysis for TSE:5252

Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円737.00
Price
円544.01
GF Value