Renova EnergiaBSP:RNEW3 -7.78%51 Altman Z-Score is -1.37 as of Jun. 30, 2026. GuruFocus rates BSP:RNEW3 with a GF Score™ of 51/100 and a GF Value™ of R$1.28 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 411 Utilities - Independent Power Producers companies, Renova Energia ranks worse than 94.16% 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 -1.36 is in distress zone. This implies bankruptcy possibility in the next two years.
Renova Energia has a Altman Z-Score of -1.37, 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 Renova Energia's Altman Z-Score or its related term are showing as below:
BSP:RNEW3'
s Altman Z-Score Range Over the Past 10 Years
Min: -4.89 Med: -1.55 Max: 0.77
Current: -1.36
During the past 13 years, Renova Energia's highest Altman Z-Score was 0.77. The lowest was -4.89. And the median was -1.55.
Renova Energia (BSP:RNEW3) 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.
Altman Z-Score does not apply to financial companies.
Renova Energia Altman Z-Score Related Terms
Renova Energia Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Renova Energia'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.
Renova Energia Altman Z-Score Competitor Comparison
For the Utilities - Renewable subindustry, Renova Energia'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.
Renova Energia Altman Z-Score vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Renova Energia's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Renova Energia'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.
Renova Energia'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
*
-0.0316
+
1.4
*
-1.1526
+
3.3
*
0.0012
+
0.6
*
0.1632
+
1.0
*
0.1788
=
-1.37
* 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.
Renova Energia (BSP:RNEW3) has a Altman Z-Score of -1.37 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Renova Energia and its competitors. According to the industry distribution chart, Renova Energia ranks #387 out of 411 companies in the Utilities - Independent Power Producers industry, placing it in the top 94.2%.
Is Renova Energia's Altman Z-Score too high?
Renova Energia's current Altman Z-Score is -1.37. Based on the distribution chart, Renova Energia ranks #387 out of 411 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Renova Energia has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Renova Energia's Altman Z-Score compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Renova Energia ranks #387 out of 411 companies for Altman Z-Score. This places Renova Energia in the lower half of its industry. The industry median Altman Z-Score is 1.23. 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 Utilities - Independent Power Producers company?
The median Altman Z-Score among Utilities - Independent Power Producers companies is 1.23, based on 411 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. 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 Renova Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Altman Z-Score is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renova Energia's current Altman Z-Score is -1.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renova Energia stock overvalued right now?
Based on GuruFocus' analysis, Renova Energia (BSP:RNEW3) is currently considered Possible Value Trap. The stock's GF Value™ is R$1.28, compared to a current price of R$0.83 — trading 35.2% below its estimated fair value. The current Altman Z-Score is -1.37. Renova Energia's overall GF Score™ is 51/100 with 3 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 Renova Energia (BSP:RNEW3), the current Altman Z-Score is -1.37 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.
Is Renova Energia (BSP:RNEW3) Overvalued in 2026?
Based on GuruFocus' analysis, Renova Energia stock appears to be undervalued.
The current stock price of R$0.83 is trading 35.2% below its estimated GF Value™ of R$1.28.
GuruFocus considers Renova Energia to be Possible Value Trap.
Key valuation signals for BSP:RNEW3:
Altman Z-Score: -1.37
GF Value™: R$1.28 vs. price of R$0.83 (35.2% below fair value)
No single metric tells the full story. See the BSP:RNEW3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renova Energia SA is a Brazilian energy company engaged in the development, implementation, and operation of power generation projects from renewable sources - wind and solar, and trading of energy and related activities. The company is generating and trading electric power in all its forms, producing fuel from natural and renewable sources, providing logistics services to environmental advisory firms, and providing advisory services for energy solutions related to the generation, trading, transmission, and other businesses. The company has operating segments, namely: Wind, Solar, Trading, and Administrative. It derives maximum revenue from the Trading segment, which is engaged in energy trading in all its forms and management of the Company's energy purchase and sale contracts.
51GF Score
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