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, The United Basalt Products'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.
The United Basalt Products (XMAU:UBP) 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.
The United Basalt Products Probability of Financial Distress (%) Related Terms
XMAU:UBP vs CRH, VMC, MLM: Probability of Financial Distress (%) Comparison
For the Building Materials subindustry, The United Basalt Products'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.
The United Basalt Products Probability of Financial Distress (%) vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, The United Basalt Products's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where The United Basalt Products's Probability of Financial Distress (%) falls into.
The United Basalt Products 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
=
-6.66
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 0.13% mean?
The United Basalt Products (XMAU:UBP) has a Probability of Financial Distress (%) of 0.13% as of Jun. 27, 2026.
Is The United Basalt Products' Probability of Financial Distress (%) too high?
The United Basalt Products' current Probability of Financial Distress (%) is 0.13%. Overall, The United Basalt Products has a GF Score™ of 91/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The United Basalt Products' Probability of Financial Distress (%) compare to CRH and VMC?
The United Basalt Products' Probability of Financial Distress (%) of 0.13% can be compared against companies in the Building Materials 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 Building Materials company?
A good Probability of Financial Distress (%) depends on the Building Materials 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. The United Basalt Products's current Probability of Financial Distress (%) is 0.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The United Basalt Products stock overvalued right now?
Based on GuruFocus' analysis, The United Basalt Products (XMAU:UBP) is currently considered Possible Value Trap. The stock's GF Value™ is MUR121.36, compared to a current price of MUR39.40 — trading 67.5% below its estimated fair value. The current Probability of Financial Distress (%) is 0.13%. The United Basalt Products' overall GF Score™ is 91/100 with 5 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 The United Basalt Products (XMAU:UBP), the current Probability of Financial Distress (%) is 0.13% as of Jun. 27, 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 The United Basalt Products (XMAU:UBP) Overvalued in 2026?
Based on GuruFocus' analysis, The United Basalt Products stock appears to be undervalued.
The current stock price of MUR39.40 is trading 67.5% below its estimated GF Value™ of MUR121.36.
GuruFocus considers The United Basalt Products to be Possible Value Trap.
Key valuation signals for XMAU:UBP:
Probability of Financial Distress (%): 0.13%
GF Value™: MUR121.36 vs. price of MUR39.40 (67.5% below fair value)
No single metric tells the full story. See the XMAU:UBP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The United Basalt Products Ltd is engaged in the manufacturing and sale of building materials, which consist mainly of aggregates, rock sand, and concrete blocks. Other products include precast concrete slabs, ready-to-use dry mortar, various concrete building components, including paving blocks and roof tiles, imported floor and wall tiles, sanitary ware, and a complete range of home building and decorating products, fittings, tools, and garden accessories. Services rendered consist mainly of engineering works by the company's workshop and contracting services. The Groups business segments consist of core business activities, retail, and agriculture. The majority of its activity is performed in Mauritius.
91GF Score
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