Nido Education (ASX:NDO) Altman Z-Score: 0.61 (As of Jun. 30, 2026) — 20% Below Median


ASX:NDO Nido Education Ltd ASX:NDO
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What is Nido Education Altman Z-Score?

Nido Education ASX:NDO +1.47% 18 Altman Z-Score is 0.61 as of Jun. 30, 2026, which is 20% below its 10-year median of 0.76. GuruFocus rates ASX:NDO with a GF Score™ of 18/100. The stock has 8 warning signs investors should review. Among 250 Education companies, Nido Education ranks worse than 82.4% on this metric.

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 0.61 is in distress zone. This implies bankruptcy possibility in the next two years.

Nido Education has a Altman Z-Score of 0.61, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Nido Education's Altman Z-Score or its related term are showing as below:

ASX:NDO' s Altman Z-Score Range Over the Past 10 Years
Min: 0.49   Med: 0.76   Max: 1.04
Current: 0.61

During the past 4 years, Nido Education's highest Altman Z-Score was 1.04. The lowest was 0.49. And the median was 0.76.


Nido Education  (ASX:NDO) Altman Z-Score Explanation

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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Nido Education Altman Z-Score Related Terms


Nido Education Altman Z-Score Historical Data

* Premium members only.

The historical data trend for Nido Education's Altman Z-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.

Nido Education Altman Z-Score Chart

Nido Education Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Altman Z-Score
0.00 0.49 1.04 0.76

Nido Education Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Altman Z-Score Get a 7-Day Free Trial 0.49 0.00 1.04 0.00 0.76

ASX:NDO vs EDU, TAL, LAUR: Altman Z-Score Comparison

For the Education & Training Services subindustry, Nido Education'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.


Nido Education Altman Z-Score vs Education Industry

For the Education industry and Consumer Defensive sector, Nido Education's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Nido Education's Altman Z-Score falls into.


ASX:NDO
18GF Score
Nido Education Ltd ASX:NDO
Altman Z-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Nido Education Altman Z-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.

Nido Education's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0862+1.4*-0.062+3.3*0.0305+0.6*0.3347+1.0*0.4955
=0.61

* 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.

Trailing Twelve Months (TTM) ended in Dec. 2025:
Total Assets was A$342.8 Mil.
Total Current Assets was A$10.5 Mil.
Total Current Liabilities was A$40.1 Mil.
Retained Earnings was A$-21.3 Mil.
Pre-Tax Income was A$8.9 Mil.
Interest Expense was A$-1.6 Mil.
Revenue was A$169.9 Mil.
Market Cap (Today) was A$77.2 Mil.
Total Liabilities was A$230.5 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
=(10.532 - 40.082)/342.834
=-0.0862

X2=Retained Earnings/Total Assets
=-21.262/342.834
=-0.062

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(8.902 - -1.554)/342.834
=0.0305

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=77.156/230.544
=0.3347

X5=Revenue/Total Assets
=169.869/342.834
=0.4955

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Nido Education has a Altman Z-Score of 0.61 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Frequently Asked Questions Learn more about Altman Z-Score →
What does a Altman Z-Score of 0.61 mean?
Nido Education (ASX:NDO) has a Altman Z-Score of 0.61 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Nido Education and its competitors. This is 20% below median its historical median of 0.76. Over the past decade, Nido Education's Altman Z-Score has ranged from 0.49 to 1.04. According to the industry distribution chart, Nido Education ranks #206 out of 250 companies in the Education industry, placing it in the top 82.4%.
Is Nido Education's Altman Z-Score too high?
Nido Education's current Altman Z-Score of 0.61 is 20% below median its 10-year median of 0.76. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 1.04. The Education industry median Altman Z-Score is 2.37. Nido Education's value of 0.61 is 74.3% below this industry median. Based on the distribution chart, Nido Education ranks #206 out of 250 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Nido Education has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Nido Education's Altman Z-Score compare to EDU and TAL?
According to the Education industry distribution chart, Nido Education ranks #206 out of 250 companies for Altman Z-Score. This places Nido Education in the lower half of its industry. The industry median Altman Z-Score is 2.37. Nido Education's value of 0.61 is 74.3% below this benchmark. Historically, Nido Education's own Altman Z-Score has ranged from 0.49 to 1.04 over the past decade. While the company's 10-year median is 0.76 vs. the industry median of 2.37, Nido Education has consistently been below 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 2.37, 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. Nido Education's current Altman Z-Score of 0.61 is 74.3% below 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 Nido Education and its competitors. For the Education industry, the median Altman Z-Score is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nido Education's current Altman Z-Score is 0.61, which is 20% below median its own 10-year median of 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nido Education stock overvalued right now?
Nido Education (ASX:NDO) has a current Altman Z-Score of 0.61. The current Altman Z-Score is 0.61, which is 20% below median its 10-year median of 0.76 and 74.3% below the Education industry median of 2.37. Nido Education's overall GF Score™ is 18/100 with 8 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 Nido Education (ASX:NDO), the current Altman Z-Score is 0.61 as of Jun. 30, 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.

Nido Education Business Description

Address 1 Park Avenue, Suite 3, Drummoyne, NSW, AUS, 2047
Nido Education Ltd is a national owner, operator and manager of long-day early childhood education and care services. It offers exceptional education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The Group operates in one segment being child care services.
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