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, Nippon Carbon Co's Probability of Financial Distress (%) is 0.01%.
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.
Nippon Carbon Co (TSE:5302) 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.
Nippon Carbon Co Probability of Financial Distress (%) Related Terms
TSE:5302 vs LIN, SHW, ECL: Probability of Financial Distress (%) Comparison
For the Specialty Chemicals subindustry, Nippon Carbon 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.
Nippon Carbon Co Probability of Financial Distress (%) vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Carbon Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Nippon Carbon Co's Probability of Financial Distress (%) falls into.
Nippon Carbon 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
=
-8.88
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 0.01% mean?
Nippon Carbon Co (TSE:5302) has a Probability of Financial Distress (%) of 0.01% as of Jun. 26, 2026.
Is Nippon Carbon Co's Probability of Financial Distress (%) too high?
Nippon Carbon Co's current Probability of Financial Distress (%) is 0.01%. Overall, Nippon Carbon Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Carbon Co's Probability of Financial Distress (%) compare to LIN and SHW?
Nippon Carbon Co's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Chemicals 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 Chemicals company?
A good Probability of Financial Distress (%) depends on the Chemicals 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. Nippon Carbon Co's current Probability of Financial Distress (%) is 0.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Carbon Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Carbon Co (TSE:5302) is currently considered Fairly Valued. The stock's GF Value™ is 円4,527.11, compared to a current price of 円4,685.00 — trading 3.5% above its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Nippon Carbon Co's overall GF Score™ is 85/100 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 Nippon Carbon Co (TSE:5302), the current Probability of Financial Distress (%) is 0.01% 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 Nippon Carbon Co (TSE:5302) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Carbon Co stock appears to be overvalued.
The current stock price of 円4,685.00 is trading 3.5% above its estimated GF Value™ of 円4,527.11.
GuruFocus considers Nippon Carbon Co to be Fairly Valued.
Key valuation signals for TSE:5302:
Probability of Financial Distress (%): 0.01%
GF Value™: 円4,527.11 vs. price of 円4,685.00 (3.5% above fair value)
No single metric tells the full story. See the TSE:5302 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Carbon Co Ltd engages in the manufacture and sale of carbon products. It provides products in following categories: Carbon Products, Silicon carbide products, and Others. The Carbon Products include artificial graphite electrode, impervious graphite products, isotropic high purity graphite products, a machine for graphite products, general purpose carbon fibers, and graphite fibers, containing resin graphite fibers made of packing, flexible graphite sealing material, and node material for lithium ion battery. Silicon carbide products are involved in the development and sale of ceramic matrix composite. Other category deals with manufacturing industrial machinery, mechanical repair, building and parking leasing.
85GF Score
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