H & M Hennes & Mauritz ABCHIX:HMBS +0.50%74 Altman Z-Score is 2.94 as of Jun. 29, 2026, which is 7% below its 10-year median of 3.16. GuruFocus rates CHIX:HMBS with a GF Score™ of 74/100 and a GF Value™ of kr155.07 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,032 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 60.56% 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.
Good Sign:
Altman Z-score of 3.11 is strong.
H & M Hennes & Mauritz AB has a Altman Z-Score of 2.94, indicating it is in Grey Zones. This implies that H & M Hennes & Mauritz AB 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 H & M Hennes & Mauritz AB's Altman Z-Score or its related term are showing as below:
CHIX:HMBs'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.25 Med: 3.16 Max: 10.94
Current: 3.11
During the past 13 years, H & M Hennes & Mauritz AB's highest Altman Z-Score was 10.94. The lowest was 2.25. And the median was 3.16.
H & M Hennes & Mauritz AB (CHIX:HMBs) 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.
* 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.
CHIX:HMBS vs RL, LEVI, VFC: Altman Z-Score Comparison
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB'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.
H & M Hennes & Mauritz AB Altman Z-Score vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's Altman Z-Score falls into.
H & M Hennes & Mauritz AB 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.
* 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.
H & M Hennes & Mauritz AB (CHIX:HMBS) has a Altman Z-Score of 2.94 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on H & M Hennes & Mauritz AB and its competitors. This is near median its historical median of 3.16. Over the past decade, H & M Hennes & Mauritz AB's Altman Z-Score has ranged from 2.25 to 10.94. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #407 out of 1032 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 39.4%.
Is H & M Hennes & Mauritz AB's Altman Z-Score too high?
H & M Hennes & Mauritz AB's current Altman Z-Score of 2.94 is near median its 10-year median of 3.16. Over the past 10 years, this metric has ranged from a low of 2.25 to a high of 10.94. The Manufacturing - Apparel & Accessories industry median Altman Z-Score is 2.51. H & M Hennes & Mauritz AB's value of 2.94 is 17.4% above this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #407 out of 1032 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, H & M Hennes & Mauritz AB has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's Altman Z-Score compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #407 out of 1032 companies for Altman Z-Score. This puts H & M Hennes & Mauritz AB in the upper half of its industry. The industry median Altman Z-Score is 2.51. H & M Hennes & Mauritz AB's value of 2.94 is 17.4% above this benchmark. Historically, H & M Hennes & Mauritz AB's own Altman Z-Score has ranged from 2.25 to 10.94 over the past decade. While the company's 10-year median is 3.16 vs. the industry median of 2.51, H & M Hennes & Mauritz AB 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 a Manufacturing - Apparel & Accessories company?
The median Altman Z-Score among Manufacturing - Apparel & Accessories companies is 2.51, based on 1,032 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. H & M Hennes & Mauritz AB's current Altman Z-Score of 2.94 is 17.4% 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 H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Altman Z-Score is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current Altman Z-Score is 2.94, which is near median its own 10-year median of 3.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H & M Hennes & Mauritz AB stock overvalued right now?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB (CHIX:HMBS) is currently considered Fairly Valued. The stock's GF Value™ is kr155.07, compared to a current price of kr166.08 — trading 7.1% above its estimated fair value. The current Altman Z-Score is 2.94, which is near median its 10-year median of 3.16 and 17.4% above the Manufacturing - Apparel & Accessories industry median of 2.51. H & M Hennes & Mauritz AB's overall GF Score™ is 74/100 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 H & M Hennes & Mauritz AB (CHIX:HMBS), the current Altman Z-Score is 2.94 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 H & M Hennes & Mauritz AB (CHIX:HMBS) Overvalued in 2026?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB stock appears to be overvalued.
The current stock price of kr166.08 is trading 7.1% above its estimated GF Value™ of kr155.07.
GuruFocus considers H & M Hennes & Mauritz AB to be Fairly Valued.
Key valuation signals for CHIX:HMBS:
Altman Z-Score: 2.94 (near median its 10-year median of 3.16)
GF Value™: kr155.07 vs. price of kr166.08 (7.1% above fair value)
Industry Position: 17.4% above the Manufacturing - Apparel & Accessories median (#407 of 1032)
No single metric tells the full story. See the CHIX:HMBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The H&M Group is a global multi-brand fashion conglomerate founded in 1947. Its flagship brand, H&M, generates the majority of the group's revenue, while ARKET, COS, and the secondhand platform Sellpy represent key sources of future growth. Geographically, 34% of group revenues are generated in Western Europe, followed by North and South America at 23%, and both Southern Europe and Asia, Oceania, and Africa at 13% each. The Nordic region accounts for approximately 9% of total sales.The company operates 4,101 stores (3,660 attributable to H&M brand) across 81 markets worldwide, the majority of which are leased. Online sales contributed slightly above 30% of total group revenue in financial 2025 .
74GF Score
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