Grafton GroupGROUF Altman Z-Score is 2.50 as of Jun. 26, 2026, which is 21% below its 10-year median of 3.17. The stock has 3 warning signs investors should review.
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 2.82 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.
Grafton Group has a Altman Z-Score of 2.50, indicating it is in Grey Zones. This implies that Grafton Group 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 Grafton Group's Altman Z-Score or its related term are showing as below:
GROUF'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.02 Med: 3.17 Max: 4.84
Current: 2.82
During the past 13 years, Grafton Group's highest Altman Z-Score was 4.84. The lowest was 2.02. And the median was 3.17.
Grafton Group (OTCPK:GROUF) 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.
Grafton Group Altman Z-Score Related Terms
Grafton Group Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Grafton Group'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.
GROUF vs FAST, GWW, FERG: Altman Z-Score Comparison
For the Industrial Distribution subindustry, Grafton Group'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.
Grafton Group Altman Z-Score vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Grafton Group'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.
Grafton Group'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
*
0.2288
+
1.4
*
0.4668
+
3.3
*
0.067
+
0.6
*
0.7652
+
1.0
*
0.8934
=
2.50
* 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.
Grafton Group (GROUF) has a Altman Z-Score of 2.50 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Grafton Group and its competitors. This is 21% below median its historical median of 3.17. Over the past decade, Grafton Group's Altman Z-Score has ranged from 2.02 to 4.84.
Is Grafton Group's Altman Z-Score too high?
Grafton Group's current Altman Z-Score of 2.50 is 21% below median its 10-year median of 3.17. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 4.84. The Industrial Distribution industry median Altman Z-Score is 3.28. Grafton Group's value of 2.50 is 23.8% below this industry median.
How does Grafton Group's Altman Z-Score compare to FAST and GWW?
Grafton Group's Altman Z-Score of 2.50 can be compared against companies in the Industrial Distribution industry. The industry median Altman Z-Score is 3.28. Grafton Group's value of 2.50 is 23.8% below this benchmark. Historically, Grafton Group's own Altman Z-Score has ranged from 2.02 to 4.84 over the past decade. While the company's 10-year median is 3.17 vs. the industry median of 3.28, Grafton Group 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 an Industrial Distribution company?
The median Altman Z-Score among Industrial Distribution companies is 3.28, based on 154 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. Grafton Group's current Altman Z-Score of 2.50 is 23.8% 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median Altman Z-Score is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current Altman Z-Score is 2.50, which is 21% below median its own 10-year median of 3.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current Altman Z-Score is 2.50, which is 21% below median its 10-year median of 3.17 and 23.8% below the Industrial Distribution industry median of 3.28. 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 Grafton Group (GROUF), the current Altman Z-Score is 2.50 as of Jun. 26, 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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