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 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.
Sumitomo Mitsui Construction Co has a Altman Z-Score of 2.05, indicating it is in Grey Zones. This implies that Sumitomo Mitsui Construction Co 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 Sumitomo Mitsui Construction Co's Altman Z-Score or its related term are showing as below:
FRA:72S'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.48 Med: 2.17 Max: 2.58
Current: 2
During the past 13 years, Sumitomo Mitsui Construction Co's highest Altman Z-Score was 2.58. The lowest was 1.48. And the median was 2.17.
Sumitomo Mitsui Construction Co (FRA:72S) 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.
Sumitomo Mitsui Construction Co Altman Z-Score Chart
For the Conglomerates subindustry, Sumitomo Mitsui Construction Co'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.
Sumitomo Mitsui Construction Co Altman Z-Score vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sumitomo Mitsui Construction Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Sumitomo Mitsui Construction Co's Altman Z-Score falls into.
Sumitomo Mitsui Construction Co 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.
Sumitomo Mitsui Construction Co (FRA:72S) has a Altman Z-Score of 2.05 as of Jul. 05, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sumitomo Mitsui Construction Co and its competitors. This is near median its historical median of 2.17. Over the past decade, Sumitomo Mitsui Construction Co's Altman Z-Score has ranged from 1.48 to 2.58.
Is Sumitomo Mitsui Construction Co's Altman Z-Score too high?
Sumitomo Mitsui Construction Co's current Altman Z-Score of 2.05 is near median its 10-year median of 2.17. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 2.58. The Conglomerates industry median Altman Z-Score is 2.07. Sumitomo Mitsui Construction Co's value of 2.05 is 1% below this industry median. Overall, Sumitomo Mitsui Construction Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Mitsui Construction Co's Altman Z-Score compare to HON and MMM?
Sumitomo Mitsui Construction Co's Altman Z-Score of 2.05 can be compared against companies in the Conglomerates industry. The industry median Altman Z-Score is 2.07. Sumitomo Mitsui Construction Co's value of 2.05 is 1% below this benchmark. Historically, Sumitomo Mitsui Construction Co's own Altman Z-Score has ranged from 1.48 to 2.58 over the past decade. While the company's 10-year median is 2.17 vs. the industry median of 2.07, Sumitomo Mitsui Construction Co 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 a Conglomerates company?
The median Altman Z-Score among Conglomerates companies is 2.07, based on 545 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. Sumitomo Mitsui Construction Co's current Altman Z-Score of 2.05 is 1% 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 Sumitomo Mitsui Construction Co and its competitors. For the Conglomerates industry, the median Altman Z-Score is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Mitsui Construction Co's current Altman Z-Score is 2.05, which is near median its own 10-year median of 2.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Mitsui Construction Co stock overvalued right now?
Sumitomo Mitsui Construction Co (FRA:72S) has a current Altman Z-Score of 2.05. The stock's GF Value™ is €2.03, compared to a current price of €3.18 — trading 56.7% above its estimated fair value. The current Altman Z-Score is 2.05, which is near median its 10-year median of 2.17 and 1% below the Conglomerates industry median of 2.07. Sumitomo Mitsui Construction Co's overall GF Score™ is 13/100 with 10 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 Sumitomo Mitsui Construction Co (FRA:72S), the current Altman Z-Score is 2.05 as of Jul. 05, 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 Sumitomo Mitsui Construction Co (FRA:72S) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Mitsui Construction Co stock appears to be overvalued.
The current stock price of €3.18 is trading 56.7% above its estimated GF Value™ of €2.03.
Key valuation signals for FRA:72S:
Altman Z-Score: 2.05 (near median its 10-year median of 2.17)
GF Value™: €2.03 vs. price of €3.18 (56.7% above fair value)
Industry Position: 1% below the Conglomerates median
No single metric tells the full story. See the FRA:72S stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Mitsui Construction Co Business Description
Sumitomo Mitsui Construction Co Ltd is a construction company based in Japan. The company is primarily engaged in designing, engineering and executing civil projects which mainly include skyscrapers and high-rise buildings. It uses various technologies, such as controllable wide wall column, inverted construction method, lead rubber isolator, flat lead plug rubber, and dustless shotcrete method to construct high rise buildings and tunnel branching. It also engages in real estate trading, leasing, and management services.
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