ZKIN (ZK International Group Co) Probability of Financial Distress (%): 1.13% (As of Jun. 25, 2026)


ZKIN ZK International Group Co Ltd ZKIN
59 GF Score
Price $1.35
GF Value $1.80
Valuation Modestly Undervalued
! 7 Warning Signs
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What is ZK International Group Co Probability of Financial Distress (%)?

ZK International Group Co ZKIN -3.57% 59 Probability of Financial Distress (%) is 1.13% as of Jun. 25, 2026. GuruFocus rates ZKIN with a GF Score™ of 59/100 and a GF Value™ of $1.80 (Modestly Undervalued). The stock has 7 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, ZK International Group Co's Probability of Financial Distress (%) is 1.13%.

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.

ZK International Group Co  (NAS:ZKIN) 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.

ZK International Group Co Probability of Financial Distress (%) Related Terms

ZKIN vs HLP, LUD, HUDI: Probability of Financial Distress (%) Comparison

For the Steel subindustry, ZK International Group 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.

ZK International Group Co Probability of Financial Distress (%) vs Steel Industry

For the Steel industry and Basic Materials sector, ZK International Group Co's Probability of Financial Distress (%) distribution charts can be found below:

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


ZKIN
59GF Score
ZK International Group Co Ltd ZKIN
Probability of Financial Distress (%) is just one metric. See GF Score™, valuation, warning signs, and more.
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ZK International Group 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
=-4.47

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

PFD=1/(1 + e^(-LPFD))*100%
=1.13%

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 1.13% mean?
ZK International Group Co (ZKIN) has a Probability of Financial Distress (%) of 1.13% as of Jun. 25, 2026.
Is ZK International Group Co's Probability of Financial Distress (%) too high?
ZK International Group Co's current Probability of Financial Distress (%) is 1.13%. Overall, ZK International Group Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZK International Group Co's Probability of Financial Distress (%) compare to HLP and LUD?
ZK International Group Co's Probability of Financial Distress (%) of 1.13% can be compared against companies in the Steel 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 Steel company?
A good Probability of Financial Distress (%) depends on the Steel 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. ZK International Group Co's current Probability of Financial Distress (%) is 1.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZK International Group Co stock overvalued right now?
Based on GuruFocus' analysis, ZK International Group Co (ZKIN) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.80, compared to a current price of $1.35 — trading 25% below its estimated fair value. The current Probability of Financial Distress (%) is 1.13%. ZK International Group Co's overall GF Score™ is 59/100 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 ZK International Group Co (ZKIN), the current Probability of Financial Distress (%) is 1.13% as of Jun. 25, 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 ZK International Group Co (ZKIN) Overvalued in 2026?

Based on GuruFocus' analysis, ZK International Group Co stock appears to be undervalued. The current stock price of $1.35 is trading 25% below its estimated GF Value™ of $1.80. GuruFocus considers ZK International Group Co to be Modestly Undervalued.

Key valuation signals for ZKIN:

  • Probability of Financial Distress (%): 1.13%
  • GF Value™: $1.80 vs. price of $1.35 (25% below fair value)
  • GF Score™: 59/100 with 7 warning signs

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

ZK International Group Co Business Description

Address C/o Zhejiang Zhengkang Industrial Co., Ltd., No. 678 Dingxiang Road, Binhai Industrial Park, Zhejiang Province, Economic and Technology Development Zone, Wenzhou, CHN, 325025
ZK International Group Co Ltd is engaged in the manufacture and marketing of metal pipes. The company is specialized in producing double-press thin-walled stainless steel tubes and fittings, carbon steel tubes and fittings, single-press tubes and fittings, and stainless-steel strips. The products are used in restaurants, hotels, hospitals, firefighting, food, beverage, ships, engines, industrial seawater desalination and systems of direct-drinking water, cold /hot water supply, city water supply, and gas of large/middle scale construction projects.
59GF Score

Get the complete analysis for ZKIN

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

$1.35
Price
$1.80
GF Value