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Lithium AfricaFRA:6MQ -13.67%20 Altman Z2-Score is 26.32 as of Jul. 23, 2026, which is 524% above its 10-year median of 4.22. GuruFocus rates FRA:6MQ with a GF Score™ of 20/100. The stock has 1 warning sign investors should review. Among 2,608 Metals & Mining companies, Lithium Africa ranks better than 85.93% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Good Sign:
Lithium Africa has a Altman Z2-Score of 26.32, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Lithium Africa's Altman Z2-Score or its related term are showing as below:
FRA:6MQ'
s Altman Z2-Score Range Over the Past 10 Years
Min: -22.88 Med: 4.22 Max: 26.28
Current: 26.28
During the past 4 years, Lithium Africa's highest Altman Z2-Score was 26.28. The lowest was -22.88. And the median was 4.22.
Lithium Africa (FRA:6MQ) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Lithium Africa Altman Z2-Score Related Terms
Lithium Africa Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Lithium Africa's Altman Z2-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lithium Africa Altman Z2-Score Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Lithium Africa's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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.
Lithium Africa Altman Z2-Score vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lithium Africa's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Lithium Africa's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Lithium Africa's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.7425
+
3.26
*
-1.514
+
6.72
*
-1.0575
+
1.05
*
31.9006
=
26.32
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Lithium Africa (FRA:6MQ) has a Altman Z2-Score of 26.32 as of Jul. 23, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Lithium Africa and its competitors. This is 524% above median its historical median of 4.22. According to the industry distribution chart, Lithium Africa ranks #367 out of 2608 companies in the Metals & Mining industry, placing it in the top 14.1%.
Is Lithium Africa's Altman Z2-Score too high?
Lithium Africa's current Altman Z2-Score of 26.32 is 524% above median its 10-year median of 4.22. The Metals & Mining industry median Altman Z2-Score is 2.18. Lithium Africa's value of 26.32 is 1107.3% above this industry median. Based on the distribution chart, Lithium Africa ranks #367 out of 2608 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Lithium Africa has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lithium Africa's Altman Z2-Score compare to competitors?
According to the Metals & Mining industry distribution chart, Lithium Africa ranks #367 out of 2608 companies for Altman Z2-Score. This places Lithium Africa in the top 14% of its industry — outperforming the majority of peers. The industry median Altman Z2-Score is 2.18. Lithium Africa's value of 26.32 is 1107.3% above this benchmark. While the company's 10-year median is 4.22 vs. the industry median of 2.18, Lithium Africa has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z2-Score for a Metals & Mining company?
The median Altman Z2-Score among Metals & Mining companies is 2.18, based on 2,608 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithium Africa's current Altman Z2-Score of 26.32 is 1107.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Lithium Africa and its competitors. For the Metals & Mining industry, the median Altman Z2-Score is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithium Africa's current Altman Z2-Score is 26.32, which is 524% above median its own 10-year median of 4.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lithium Africa stock overvalued right now?
Lithium Africa (FRA:6MQ) has a current Altman Z2-Score of 26.32. The current Altman Z2-Score is 26.32, which is 524% above median its 10-year median of 4.22 and 1107.3% above the Metals & Mining industry median of 2.18. Lithium Africa's overall GF Score™ is 20/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Lithium Africa (FRA:6MQ), the current Altman Z2-Score is 26.32 as of Jul. 23, 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.
Lithium Africa Corp is engaged in the exploration of mineral properties. The Company has one operating segment, a mineral exploration group focused on projects located in Africa.
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