Nippon Hume (TSE:5262) Altman Z2-Score: 7.47 (As of Jul. 03, 2026) — 22% Above Median


TSE:5262 Nippon Hume Corp TSE:5262
77 GF Score
Price 円1,044.00
GF Value 円763.39
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is Nippon Hume Altman Z2-Score?

Nippon Hume TSE:5262 +0.29% 77 Altman Z2-Score is 7.47 as of Jul. 03, 2026, which is 22% above its 10-year median of 6.10. GuruFocus rates TSE:5262 with a GF Score™ of 77/100 and a GF Value™ of 円763.39 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,762 Construction companies, Nippon Hume ranks better than 86.61% 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:

Nippon Hume has a Altman Z2-Score of 7.47, 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 Nippon Hume's Altman Z2-Score or its related term are showing as below:

TSE:5262' s Altman Z2-Score Range Over the Past 10 Years
Min: 4.95   Med: 6.1   Max: 7.47
Current: 7.47

During the past 13 years, Nippon Hume's highest Altman Z2-Score was 7.47. The lowest was 4.95. And the median was 6.10.


Nippon Hume  (TSE:5262) 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.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Nippon Hume Altman Z2-Score Related Terms


Nippon Hume Altman Z2-Score Historical Data

* Premium members only.

The historical data trend for Nippon Hume'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.

Nippon Hume Altman Z2-Score Chart

Nippon Hume Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.58 6.26 5.77 7.40 7.47

Nippon Hume Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.40 7.74 8.03 8.17 7.47

TSE:5262 vs TT, JCI, CARR: Altman Z2-Score Comparison

For the Building Products & Equipment subindustry, Nippon Hume'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.


Nippon Hume Altman Z2-Score vs Construction Industry

For the Construction industry and Industrials sector, Nippon Hume's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Nippon Hume's Altman Z2-Score falls into.


TSE:5262
77GF Score
Nippon Hume Corp TSE:5262
Altman Z2-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Hume Altman Z2-Score Calculation

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.

Nippon Hume'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*0.3083+3.26*0.5023+6.72*0.0661+1.05*3.2099
=7.47

* 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.

Trailing Twelve Months (TTM) ended in Mar. 2026:
Total Assets was 円68,996 Mil.
Total Current Assets was 円31,425 Mil.
Total Current Liabilities was 円10,150 Mil.
Retained Earnings was 円34,660 Mil.
Pre-Tax Income was 831.814 + 1357.791 + 822.183 + 1534.724 = 円4,547 Mil.
Interest Expense was -5.543 + -2.756 + -1.831 + -2.831 = 円-13 Mil.
Total Liabilities was 円16,268 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(31424.671 - 10150.172)/68996.244
=0.3083

X2=Retained Earnings/Total Assets
=34660.16/68996.244
=0.5023

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4546.512 - -12.961)/68996.244
=0.0661

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(52219.685 - 0)/16268.3
=3.2099

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Nippon Hume has a Altman Z2-Score of 7.47 indicating it is in Safe Zones.

Frequently Asked Questions Learn more about Altman Z2-Score →
What does a Altman Z2-Score of 7.47 mean?
Nippon Hume (TSE:5262) has a Altman Z2-Score of 7.47 as of Jul. 03, 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 Nippon Hume and its competitors. This is 22% above median its historical median of 6.10. Over the past decade, Nippon Hume's Altman Z2-Score has ranged from 4.95 to 7.47. According to the industry distribution chart, Nippon Hume ranks #236 out of 1762 companies in the Construction industry, placing it in the top 13.4%.
Is Nippon Hume's Altman Z2-Score too high?
Nippon Hume's current Altman Z2-Score of 7.47 is 22% above median its 10-year median of 6.10. Over the past 10 years, this metric has ranged from a low of 4.95 to a high of 7.47. The Construction industry median Altman Z2-Score is 3.21. Nippon Hume's value of 7.47 is 132.7% above this industry median. Based on the distribution chart, Nippon Hume ranks #236 out of 1762 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Hume has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hume's Altman Z2-Score compare to TT and JCI?
According to the Construction industry distribution chart, Nippon Hume ranks #236 out of 1762 companies for Altman Z2-Score. This places Nippon Hume in the top 13% of its industry — outperforming the majority of peers. The industry median Altman Z2-Score is 3.21. Nippon Hume's value of 7.47 is 132.7% above this benchmark. Historically, Nippon Hume's own Altman Z2-Score has ranged from 4.95 to 7.47 over the past decade. While the company's 10-year median is 6.10 vs. the industry median of 3.21, Nippon Hume 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 3.21, based on 1,762 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. Nippon Hume's current Altman Z2-Score of 7.47 is 132.7% 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 Nippon Hume and its competitors. For the Construction industry, the median Altman Z2-Score is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hume's current Altman Z2-Score is 7.47, which is 22% above median its own 10-year median of 6.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hume stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hume (TSE:5262) is currently considered Significantly Overvalued. The stock's GF Value™ is 円763.39, compared to a current price of 円1,044.00 — trading 36.8% above its estimated fair value. The current Altman Z2-Score is 7.47, which is 22% above median its 10-year median of 6.10 and 132.7% above the Construction industry median of 3.21. Nippon Hume's overall GF Score™ is 77/100 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 Nippon Hume (TSE:5262), the current Altman Z2-Score is 7.47 as of Jul. 03, 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 Nippon Hume (TSE:5262) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Hume stock appears to be overvalued. The current stock price of 円1,044.00 is trading 36.8% above its estimated GF Value™ of 円763.39. GuruFocus considers Nippon Hume to be Significantly Overvalued.

Key valuation signals for TSE:5262:

  • Altman Z2-Score: 7.47 (22% above median its 10-year median of 6.10)
  • GF Value™: 円763.39 vs. price of 円1,044.00 (36.8% above fair value)
  • GF Score™: 77/100 with 1 warning sign
  • Industry Position: 132.7% above the Construction median (#236 of 1762)

No single metric tells the full story. See the TSE:5262 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Hume Business Description

Address No. 11, No. 33 5-chome, Minato-ku, Tokyo, JPN, 105-0004
Nippon Hume Corp provides one-stop service in the design, manufacture and installation of precast concrete products. The company's three reportable segments include Foundations, Sewerage-related, and Solar Power Generation and Real Estate. In Foundations, concrete piles are manufactured and sold, and pile driving work is carried out. In the Sewerage related segment, Hume pipes, segments and other products are manufactured and sold, and pipe and drain rehabilitation projects are carried out. In Solar Power Generation and Real Estate, real estate is rented, managed and developed, and equipment related to solar power and the environment is sold and maintenance is provided for it.
77GF Score

Get the complete analysis for TSE:5262

Altman Z2-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,044.00
Price
円763.39
GF Value