The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.62 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Kip McGrath Education Centres has a Altman Z-Score of 2.62, indicating it is in Grey Zones. This implies that Kip McGrath Education Centres is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Kip McGrath Education Centres's Altman Z-Score or its related term are showing as below:
ASX:KME'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.2 Med: 3.12 Max: 4.27
Current: 2.62
During the past 13 years, Kip McGrath Education Centres's highest Altman Z-Score was 4.27. The lowest was 2.20. And the median was 3.12.
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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
ASX:KME vs EDU, TAL, LAUR: Altman Z-Score Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres's Altman Z-Score, along with its competitors' market caps and Altman Z-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.
Kip McGrath Education Centres Altman Z-Score vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres's Altman Z-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.
* 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 Z-Score when X4 or X5 value is 0.
Kip McGrath Education Centres (ASX:KME) has a Altman Z-Score of 2.62 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Kip McGrath Education Centres and its competitors. This is 16% below median its historical median of 3.12. Over the past decade, Kip McGrath Education Centres' Altman Z-Score has ranged from 2.20 to 4.27. According to the industry distribution chart, Kip McGrath Education Centres ranks #115 out of 250 companies in the Education industry, placing it in the top 46%.
Is Kip McGrath Education Centres' Altman Z-Score too high?
Kip McGrath Education Centres' current Altman Z-Score of 2.62 is 16% below median its 10-year median of 3.12. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 4.27. The Education industry median Altman Z-Score is 2.34. Kip McGrath Education Centres' value of 2.62 is 12% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #115 out of 250 companies in the Education industry, which is above the industry midpoint. Overall, Kip McGrath Education Centres has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' Altman Z-Score compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #115 out of 250 companies for Altman Z-Score. This puts Kip McGrath Education Centres in the upper half of its industry. The industry median Altman Z-Score is 2.34. Kip McGrath Education Centres' value of 2.62 is 12% above this benchmark. Historically, Kip McGrath Education Centres' own Altman Z-Score has ranged from 2.20 to 4.27 over the past decade. While the company's 10-year median is 3.12 vs. the industry median of 2.34, Kip McGrath Education Centres 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 Z-Score for an Education company?
The median Altman Z-Score among Education companies is 2.34, based on 250 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kip McGrath Education Centres's current Altman Z-Score of 2.62 is 12% 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 Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Kip McGrath Education Centres and its competitors. For the Education industry, the median Altman Z-Score is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current Altman Z-Score is 2.62, which is 16% below median its own 10-year median of 3.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.47 — trading 14.5% below its estimated fair value. The current Altman Z-Score is 2.62, which is 16% below median its 10-year median of 3.12 and 12% above the Education industry median of 2.34. Kip McGrath Education Centres' overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current Altman Z-Score is 2.62 as of Jun. 29, 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.47 is trading 14.5% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
Altman Z-Score: 2.62 (16% below median its 10-year median of 3.12)
GF Value™: A$0.55 vs. price of A$0.47 (14.5% below fair value)
Industry Position: 12% above the Education median (#115 of 250)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
60GF Score
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