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What is Freetech Road Recycling Technology (Holdings) Altman Z2-Score?
Freetech Road Recycling Technology (Holdings)HKSE:06888 -2.44% Altman Z2-Score is 4.49 as of Sep. 21, 2026, which is 25% above its 10-year median of 3.60. The stock has 7 warning signs investors should review. Among 1,588 Construction companies, Freetech Road Recycling Technology (Holdings) ranks better than 64.74% 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:
Freetech Road Recycling Technology (Holdings) has a Altman Z2-Score of 4.49, 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 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.
* 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.
For the Infrastructure Operations subindustry, Freetech Road Recycling Technology (Holdings)'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.
Freetech Road Recycling Technology (Holdings) Altman Z2-Score vs Construction Industry
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.
* 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.
Freetech Road Recycling Technology (Holdings) (HKSE:06888) has a Altman Z2-Score of 4.49 as of Sep. 21, 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 Freetech Road Recycling Technology (Holdings) and its competitors. This is 25% above median its historical median of 3.60. Over the past decade, Freetech Road Recycling Technology (Holdings)'s Altman Z2-Score has ranged from 1.66 to 5.88. According to the industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #560 out of 1588 companies in the Construction industry, placing it in the top 35.3%.
Is Freetech Road Recycling Technology (Holdings)'s Altman Z2-Score too high?
Freetech Road Recycling Technology (Holdings)'s current Altman Z2-Score of 4.49 is 25% above median its 10-year median of 3.60. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 5.88. The Construction industry median Altman Z2-Score is 3.20. Freetech Road Recycling Technology (Holdings)'s value of 4.49 is 40.3% above this industry median. Based on the distribution chart, Freetech Road Recycling Technology (Holdings) ranks #560 out of 1588 companies in the Construction industry, which is above the industry midpoint.
How does Freetech Road Recycling Technology (Holdings)'s Altman Z2-Score compare to competitors?
According to the Construction industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #560 out of 1588 companies for Altman Z2-Score. This puts Freetech Road Recycling Technology (Holdings) in the upper half of its industry. The industry median Altman Z2-Score is 3.20. Freetech Road Recycling Technology (Holdings)'s value of 4.49 is 40.3% above this benchmark. Historically, Freetech Road Recycling Technology (Holdings)'s own Altman Z2-Score has ranged from 1.66 to 5.88 over the past decade. While the company's 10-year median is 3.60 vs. the industry median of 3.20, Freetech Road Recycling Technology (Holdings) 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 Construction company?
The median Altman Z2-Score among Construction companies is 3.20, based on 1,588 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. Freetech Road Recycling Technology (Holdings)'s current Altman Z2-Score of 4.49 is 40.3% 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 Freetech Road Recycling Technology (Holdings) and its competitors. For the Construction industry, the median Altman Z2-Score is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freetech Road Recycling Technology (Holdings)'s current Altman Z2-Score is 4.49, which is 25% above median its own 10-year median of 3.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freetech Road Recycling Technology (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Freetech Road Recycling Technology (Holdings) (HKSE:06888) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.08 — trading 14.3% above its estimated fair value. The current Altman Z2-Score is 4.49, which is 25% above median its 10-year median of 3.60 and 40.3% above the Construction industry median of 3.20. 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 Freetech Road Recycling Technology (Holdings) (HKSE:06888), the current Altman Z2-Score is 4.49 as of Sep. 21, 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.
Freetech Road Recycling Technology (Holdings) Ltd is an investment holding company engaged in the manufacturing and sale of road maintenance equipment and the provision of road maintenance services in the People's Republic of China (the PRC). The operating segments of the group are the APM service segment, where it provides APM services under the registered trademark (Road Doctor) to repair damaged asphalt pavement surfaces, and the APM equipment segment, where it manufactures and sells a wide range of APM equipment. It derives the majority of its revenue from APM Services. The company has a business presence in Mainland China and other overseas markets.
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