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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 -4.8 is in distress zone. This implies bankruptcy possibility in the next two years.
Empire Petroleum has a Altman Z-Score of -4.80, 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 Empire Petroleum's Altman Z-Score or its related term are showing as below:
EP'
s Altman Z-Score Range Over the Past 10 Years
Min: -110.38 Med: -2.73 Max: 4.78
Current: -4.8
During the past 13 years, Empire Petroleum's highest Altman Z-Score was 4.78. The lowest was -110.38. And the median was -2.73.
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.
Empire Petroleum Altman Z-Score Related Terms
Empire Petroleum Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Empire Petroleum'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.
For the Oil & Gas E&P subindustry, Empire Petroleum'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.
Empire Petroleum Altman Z-Score vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Empire Petroleum's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Empire Petroleum'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.
Empire Petroleum'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
*
-0.1534
+
1.4
*
-2.0454
+
3.3
*
-0.9329
+
0.6
*
1.4994
+
1.0
*
0.4218
=
-4.80
* 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.
Empire Petroleum (EP) has a Altman Z-Score of -4.80 as of Aug. 08, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Empire Petroleum and its competitors. According to the industry distribution chart, Empire Petroleum ranks #844 out of 904 companies in the Oil & Gas industry, placing it in the top 93.4%.
Is Empire Petroleum's Altman Z-Score too high?
Empire Petroleum's current Altman Z-Score is -4.80. Based on the distribution chart, Empire Petroleum ranks #844 out of 904 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Empire Petroleum has a GF Score™ of 41/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Empire Petroleum's Altman Z-Score compare to BRLL and GLND?
According to the Oil & Gas industry distribution chart, Empire Petroleum ranks #844 out of 904 companies for Altman Z-Score. This places Empire Petroleum in the lower half of its industry. The industry median Altman Z-Score is 1.92. 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 Oil & Gas company?
The median Altman Z-Score among Oil & Gas companies is 1.92, based on 904 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 Empire Petroleum and its competitors. For the Oil & Gas industry, the median Altman Z-Score is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empire Petroleum's current Altman Z-Score is -4.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empire Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Empire Petroleum (EP) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.19, compared to a current price of $2.80 — trading 12.2% below its estimated fair value. The current Altman Z-Score is -4.80. Empire Petroleum's overall GF Score™ is 41/100 with 6 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 Empire Petroleum (EP), the current Altman Z-Score is -4.80 as of Aug. 08, 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 Empire Petroleum (EP) Overvalued in 2026?
Based on GuruFocus' analysis, Empire Petroleum stock appears to be undervalued.
The current stock price of $2.80 is trading 12.2% below its estimated GF Value™ of $3.19.
GuruFocus considers Empire Petroleum to be Modestly Undervalued.
Key valuation signals for EP:
Altman Z-Score: -4.80
GF Value™: $3.19 vs. price of $2.80 (12.2% below fair value)
No single metric tells the full story. See the EP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empire Petroleum Corp is a conventional oil and natural gas producer with a main focus in the United States onshore. The company possesses long-life, mature, producing assets with slow decline profiles in the Permian Basin, Bakken region and central Gulf Coast region, in the states of New Mexico, North Dakota, Montana, Louisiana and Texas. It has production from operated and non-operated wells in Lea County in New Mexico, Bottineau, Renville, Burke, and McKenzie Counties in North Dakota, Richland County in Montana, St. Landry, Beauregard Parishes in Louisiana and Houston, Leon and Madison Counties in Texas. The Company operates as one operating segment and one reportable segment which is engaged in the exploration, development, and production of oil, gas, and NGLs.
41GF Score
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