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Mercer InternationalFRA:AEZ -3.17%38 Altman Z-Score is 0.27 as of Jul. 27, 2026, which is 86% below its 10-year median of 1.92. GuruFocus rates FRA:AEZ with a GF Score™ of 38/100 and a GF Value™ of €5.39 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 280 Forest Products companies, Mercer International ranks worse than 90.36% 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 0.27 is in distress zone. This implies bankruptcy possibility in the next two years.
Mercer International has a Altman Z-Score of 0.27, 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 Mercer International's Altman Z-Score or its related term are showing as below:
FRA:AEZ'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.27 Med: 1.92 Max: 2.67
Current: 0.27
During the past 13 years, Mercer International's highest Altman Z-Score was 2.67. The lowest was 0.27. And the median was 1.92.
Mercer International (FRA:AEZ) 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.
Mercer International Altman Z-Score Related Terms
Mercer International Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Mercer International'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 Paper & Paper Products subindustry, Mercer International'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.
Mercer International Altman Z-Score vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Mercer International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Mercer International'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.
Mercer International'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
*
0.2291
+
1.4
*
-0.1675
+
3.3
*
-0.2188
+
0.6
*
0.0232
+
1.0
*
0.9364
=
0.27
* 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.
Mercer International (FRA:AEZ) has a Altman Z-Score of 0.27 as of Jul. 27, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Mercer International and its competitors. This is 86% below median its historical median of 1.92. Over the past decade, Mercer International's Altman Z-Score has ranged from 0.27 to 2.67. According to the industry distribution chart, Mercer International ranks #253 out of 280 companies in the Forest Products industry, placing it in the top 90.4%.
Is Mercer International's Altman Z-Score too high?
Mercer International's current Altman Z-Score of 0.27 is 86% below median its 10-year median of 1.92. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 2.67. The Forest Products industry median Altman Z-Score is 1.84. Mercer International's value of 0.27 is 85.3% below this industry median. Based on the distribution chart, Mercer International ranks #253 out of 280 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Mercer International has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mercer International's Altman Z-Score compare to ITP and SLVM?
According to the Forest Products industry distribution chart, Mercer International ranks #253 out of 280 companies for Altman Z-Score. This places Mercer International in the lower half of its industry. The industry median Altman Z-Score is 1.84. Mercer International's value of 0.27 is 85.3% below this benchmark. Historically, Mercer International's own Altman Z-Score has ranged from 0.27 to 2.67 over the past decade. While the company's 10-year median is 1.92 vs. the industry median of 1.84, Mercer International 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 Forest Products company?
The median Altman Z-Score among Forest Products companies is 1.84, based on 280 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. Mercer International's current Altman Z-Score of 0.27 is 85.3% 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 Mercer International and its competitors. For the Forest Products industry, the median Altman Z-Score is 1.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercer International's current Altman Z-Score is 0.27, which is 86% below median its own 10-year median of 1.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercer International stock overvalued right now?
Based on GuruFocus' analysis, Mercer International (FRA:AEZ) is currently considered Possible Value Trap. The stock's GF Value™ is €5.39, compared to a current price of €0.58 — trading 89.2% below its estimated fair value. The current Altman Z-Score is 0.27, which is 86% below median its 10-year median of 1.92 and 85.3% below the Forest Products industry median of 1.84. Mercer International's overall GF Score™ is 38/100 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 Mercer International (FRA:AEZ), the current Altman Z-Score is 0.27 as of Jul. 27, 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 Mercer International (FRA:AEZ) Overvalued in 2026?
Based on GuruFocus' analysis, Mercer International stock appears to be undervalued.
The current stock price of €0.58 is trading 89.2% below its estimated GF Value™ of €5.39.
GuruFocus considers Mercer International to be Possible Value Trap.
Key valuation signals for FRA:AEZ:
Altman Z-Score: 0.27 (86% below median its 10-year median of 1.92)
GF Value™: €5.39 vs. price of €0.58 (89.2% below fair value)
Industry Position: 85.3% below the Forest Products median (#253 of 280)
No single metric tells the full story. See the FRA:AEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercer International Inc is a forest products company with two reportable operating segments in pulp and solid wood. The pulp segment consists of the manufacture, sale, and distribution of pulp, electricity, and chemicals. The company has a geographical presence in the USA, Germany, China, and Other countries, where the maximum of revenue is generated from the China. The majority of the revenue is generated from the Pulp segment.
38GF Score
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