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, Whitehaven Coal'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.
Whitehaven Coal (OTCPK:WHITF) 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.
Whitehaven Coal Probability of Financial Distress (%) Related Terms
Whitehaven Coal Probability of Financial Distress (%) Competitor Comparison
For the Thermal Coal subindustry, Whitehaven Coal'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.
Whitehaven Coal Probability of Financial Distress (%) vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Whitehaven Coal's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Whitehaven Coal's Probability of Financial Distress (%) falls into.
Whitehaven Coal 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
=
-8.81
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?
Whitehaven Coal (WHITF) has a Probability of Financial Distress (%) of 0.01% as of Jun. 26, 2026.
Is Whitehaven Coal's Probability of Financial Distress (%) too high?
Whitehaven Coal's current Probability of Financial Distress (%) is 0.01%. Overall, Whitehaven Coal has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Whitehaven Coal's Probability of Financial Distress (%) compare to competitors?
Whitehaven Coal's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Other Energy Sources 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 an Other Energy Sources company?
A good Probability of Financial Distress (%) depends on the Other Energy Sources 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. Whitehaven Coal'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 Whitehaven Coal stock overvalued right now?
Based on GuruFocus' analysis, Whitehaven Coal (WHITF) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.93, compared to a current price of $5.59 — trading 13.5% above its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Whitehaven Coal's overall GF Score™ is 79/100 with 7 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 Whitehaven Coal (WHITF), 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 Whitehaven Coal (WHITF) Overvalued in 2026?
Based on GuruFocus' analysis, Whitehaven Coal stock appears to be overvalued.
The current stock price of $5.59 is trading 13.5% above its estimated GF Value™ of $4.93.
GuruFocus considers Whitehaven Coal to be Modestly Overvalued.
Key valuation signals for WHITF:
Probability of Financial Distress (%): 0.01%
GF Value™: $4.93 vs. price of $5.59 (13.5% above fair value)
No single metric tells the full story. See the WHITF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Whitehaven Coal is a large Australian independent thermal and metallurgical coal miner with mines in the Gunnedah Basin, New South Wales. It also bought Blackwater and Daunia, two coking coal mines in Queensland, from BHP and Mitsubishi in April 2024. In addition, it owns the large Winchester South deposit next to its Daunia mine. Coal is railed to ports in Newcastle and Queensland for export to Asian customers. Initial production of about 1 million metric tons from Vickery and expanded production at its Queensland mines, Maules Creek, and Narrabri means we expect its share of salable coal production to approach 31 million metric tons from fiscal 2030, from about 13 million in fiscal 2023.
79GF Score
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