Resources ConnectionFRA:RCO 60 Altman Z-Score is 1.46 as of Jul. 01, 2026, which is 69% below its 10-year median of 4.66. GuruFocus rates FRA:RCO with a GF Score™ of 60/100 and a GF Value™ of €5.73. The stock has 6 warning signs investors should review. Among 1,059 Business Services companies, Resources Connection ranks worse than 75.92% 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 1.45 is in distress zone. This implies bankruptcy possibility in the next two years.
Resources Connection has a Altman Z-Score of 1.46, 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 Resources Connection's Altman Z-Score or its related term are showing as below:
FRA:RCO'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.69 Med: 4.66 Max: 9.05
Current: 1.45
During the past 13 years, Resources Connection's highest Altman Z-Score was 9.05. The lowest was 0.69. And the median was 4.66.
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.
Resources Connection Altman Z-Score Related Terms
Resources Connection Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Resources Connection'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.
FRA:RCO vs FORR, GLAI, EUBG: Altman Z-Score Comparison
For the Consulting Services subindustry, Resources Connection'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.
Resources Connection Altman Z-Score vs Business Services Industry
For the Business Services industry and Industrials sector, Resources Connection's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Resources Connection'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.
Resources Connection'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
*
0.4194
+
1.4
*
-0.5674
+
3.3
*
-0.3334
+
0.6
*
1.7341
+
1.0
*
1.8112
=
1.46
* 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.
Resources Connection (FRA:RCO) has a Altman Z-Score of 1.46 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Resources Connection and its competitors. This is 69% below median its historical median of 4.66. Over the past decade, Resources Connection's Altman Z-Score has ranged from 0.69 to 9.05. According to the industry distribution chart, Resources Connection ranks #804 out of 1059 companies in the Business Services industry, placing it in the top 75.9%.
Is Resources Connection's Altman Z-Score too high?
Resources Connection's current Altman Z-Score of 1.46 is 69% below median its 10-year median of 4.66. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 9.05. The Business Services industry median Altman Z-Score is 2.96. Resources Connection's value of 1.46 is 50.7% below this industry median. Based on the distribution chart, Resources Connection ranks #804 out of 1059 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Resources Connection has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's Altman Z-Score compare to FORR and GLAI?
According to the Business Services industry distribution chart, Resources Connection ranks #804 out of 1059 companies for Altman Z-Score. This places Resources Connection in the lower half of its industry. The industry median Altman Z-Score is 2.96. Resources Connection's value of 1.46 is 50.7% below this benchmark. Historically, Resources Connection's own Altman Z-Score has ranged from 0.69 to 9.05 over the past decade. While the company's 10-year median is 4.66 vs. the industry median of 2.96, Resources Connection 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 Business Services company?
The median Altman Z-Score among Business Services companies is 2.96, based on 1,059 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. Resources Connection's current Altman Z-Score of 1.46 is 50.7% 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 Resources Connection and its competitors. For the Business Services industry, the median Altman Z-Score is 2.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Resources Connection's current Altman Z-Score is 1.46, which is 69% below median its own 10-year median of 4.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Resources Connection (FRA:RCO) has a current Altman Z-Score of 1.46. The stock's GF Value™ is €5.73, compared to a current price of €3.76 — trading 34.4% below its estimated fair value. The current Altman Z-Score is 1.46, which is 69% below median its 10-year median of 4.66 and 50.7% below the Business Services industry median of 2.96. Resources Connection's overall GF Score™ is 60/100 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 Resources Connection (FRA:RCO), the current Altman Z-Score is 1.46 as of Jul. 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 Resources Connection (FRA:RCO) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of €3.76 is trading 34.4% below its estimated GF Value™ of €5.73.
Key valuation signals for FRA:RCO:
Altman Z-Score: 1.46 (69% below median its 10-year median of 4.66)
GF Value™: €5.73 vs. price of €3.76 (34.4% below fair value)
Industry Position: 50.7% below the Business Services median (#804 of 1059)
No single metric tells the full story. See the FRA:RCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
60GF Score
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