Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 0.78 is in distress zone. This implies bankruptcy possibility in the next two years.
Melco International Development has a Altman Z-Score of 0.78, 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 Melco International Development's Altman Z-Score or its related term are showing as below:
FRA:MX7A'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.06 Med: 0.63 Max: 0.97
Current: 0.78
During the past 13 years, Melco International Development's highest Altman Z-Score was 0.97. The lowest was 0.06. And the median was 0.63.
Melco International Development (FRA:MX7A) 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.
Melco International Development Altman Z-Score Chart
FRA:MX7A vs LVS, MGM, WYNN: Altman Z-Score Comparison
For the Resorts & Casinos subindustry, Melco International Development'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.
Melco International Development Altman Z-Score vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco International Development's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Melco International Development's Altman Z-Score falls into.
Melco International Development 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.
Melco International Development (FRA:MX7A) has a Altman Z-Score of 0.78 as of Aug. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Melco International Development and its competitors. This is 24% above median its historical median of 0.63. Over the past decade, Melco International Development's Altman Z-Score has ranged from 0.06 to 0.97. According to the industry distribution chart, Melco International Development ranks #630 out of 837 companies in the Travel & Leisure industry, placing it in the top 75.3%.
Is Melco International Development's Altman Z-Score too high?
Melco International Development's current Altman Z-Score of 0.78 is 24% above median its 10-year median of 0.63. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 0.97. The Travel & Leisure industry median Altman Z-Score is 1.97. Melco International Development's value of 0.78 is 60.4% below this industry median. Based on the distribution chart, Melco International Development ranks #630 out of 837 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Melco International Development has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Melco International Development's Altman Z-Score compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco International Development ranks #630 out of 837 companies for Altman Z-Score. This places Melco International Development in the lower half of its industry. The industry median Altman Z-Score is 1.97. Melco International Development's value of 0.78 is 60.4% below this benchmark. Historically, Melco International Development's own Altman Z-Score has ranged from 0.06 to 0.97 over the past decade. While the company's 10-year median is 0.63 vs. the industry median of 1.97, Melco International Development 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 Travel & Leisure company?
The median Altman Z-Score among Travel & Leisure companies is 1.97, based on 837 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. Melco International Development's current Altman Z-Score of 0.78 is 60.4% 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 Melco International Development and its competitors. For the Travel & Leisure industry, the median Altman Z-Score is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco International Development's current Altman Z-Score is 0.78, which is 24% above median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco International Development stock overvalued right now?
Melco International Development (FRA:MX7A) has a current Altman Z-Score of 0.78. The stock's GF Value™ is €0.48, compared to a current price of €0.36 — trading 25.4% below its estimated fair value. The current Altman Z-Score is 0.78, which is 24% above median its 10-year median of 0.63 and 60.4% below the Travel & Leisure industry median of 1.97. Melco International Development's overall GF Score™ is 82/100 with 7 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 Melco International Development (FRA:MX7A), the current Altman Z-Score is 0.78 as of Aug. 01, 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 Melco International Development (FRA:MX7A) Overvalued in 2026?
Based on GuruFocus' analysis, Melco International Development stock appears to be undervalued.
The current stock price of €0.36 is trading 25.4% below its estimated GF Value™ of €0.48.
Key valuation signals for FRA:MX7A:
Altman Z-Score: 0.78 (24% above median its 10-year median of 0.63)
GF Value™: €0.48 vs. price of €0.36 (25.4% below fair value)
Industry Position: 60.4% below the Travel & Leisure median (#630 of 837)
No single metric tells the full story. See the FRA:MX7A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco International Development Ltd is a developer, owner, and operator of an international network of casino gaming and entertainment resorts. Its segments are the Casino and Hospitality segment, which generates maximum revenue, comprises the operation of casinos and the provision of hospitality services and facilities through Melco Resorts. Its resorts and properties include City of Dreams Cotai, Altira Macau, and Mocha Clubs in Macau; City of Dreams Manila in the Philippines; and City of Dreams Mediterranean and Cyprus Casinos in Cyprus. The Other segment comprises investments in a joint venture and associates, and other activities. Its operations are mainly located in Macau, the Philippines, Cyprus, and other regions, with maximum revenue derived from Macau.
82GF Score
Get the complete analysis for FRA:MX7A
Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:MX7A has been successfully added to your 
