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Ares AsiaHKSE:00645 36 Altman Z-Score is 10.09 as of Jul. 22, 2026, which is 141% above its 10-year median of 4.18. GuruFocus rates HKSE:00645 with a GF Score™ of 36/100 and a GF Value™ of HK$0.01 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 130 Other Energy Sources companies, Ares Asia ranks better than 90.77% 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.
Good Sign:
Altman Z-score of 10.09 is strong.
Ares Asia has a Altman Z-Score of 10.09, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Ares Asia's Altman Z-Score or its related term are showing as below:
HKSE:00645'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.94 Med: 4.18 Max: 10.43
Current: 10.09
During the past 13 years, Ares Asia's highest Altman Z-Score was 10.43. The lowest was 2.94. And the median was 4.18.
Ares Asia (HKSE:00645) 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.
Ares Asia Altman Z-Score Related Terms
Ares Asia Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Ares Asia'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 Thermal Coal subindustry, Ares Asia'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.
Ares Asia Altman Z-Score vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Ares Asia's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Ares Asia'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.
Ares Asia'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
*
0.8722
+
1.4
*
-4.2768
+
3.3
*
-0.1695
+
0.6
*
23.3263
+
1.0
*
1.5988
=
10.09
* 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.
Ares Asia (HKSE:00645) has a Altman Z-Score of 10.09 as of Jul. 22, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Ares Asia and its competitors. This is 141% above median its historical median of 4.18. Over the past decade, Ares Asia's Altman Z-Score has ranged from 2.94 to 10.43. According to the industry distribution chart, Ares Asia ranks #12 out of 130 companies in the Other Energy Sources industry, placing it in the top 9.2%.
Is Ares Asia's Altman Z-Score too high?
Ares Asia's current Altman Z-Score of 10.09 is 141% above median its 10-year median of 4.18. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 10.43. The Other Energy Sources industry median Altman Z-Score is 2.02. Ares Asia's value of 10.09 is 400.7% above this industry median. Based on the distribution chart, Ares Asia ranks #12 out of 130 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers. Overall, Ares Asia has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Asia's Altman Z-Score compare to competitors?
According to the Other Energy Sources industry distribution chart, Ares Asia ranks #12 out of 130 companies for Altman Z-Score. This places Ares Asia in the top 9% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.02. Ares Asia's value of 10.09 is 400.7% above this benchmark. Historically, Ares Asia's own Altman Z-Score has ranged from 2.94 to 10.43 over the past decade. While the company's 10-year median is 4.18 vs. the industry median of 2.02, Ares Asia has consistently been above 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 Other Energy Sources company?
The median Altman Z-Score among Other Energy Sources companies is 2.02, based on 130 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. Ares Asia's current Altman Z-Score of 10.09 is 400.7% above 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 Ares Asia and its competitors. For the Other Energy Sources industry, the median Altman Z-Score is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Asia's current Altman Z-Score is 10.09, which is 141% above median its own 10-year median of 4.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Asia stock overvalued right now?
Based on GuruFocus' analysis, Ares Asia (HKSE:00645) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.01, compared to a current price of HK$0.18 — trading 1700% above its estimated fair value. The current Altman Z-Score is 10.09, which is 141% above median its 10-year median of 4.18 and 400.7% above the Other Energy Sources industry median of 2.02. Ares Asia's overall GF Score™ is 36/100 with 5 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 Ares Asia (HKSE:00645), the current Altman Z-Score is 10.09 as of Jul. 22, 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 Ares Asia (HKSE:00645) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Asia stock appears to be overvalued.
The current stock price of HK$0.18 is trading 1700% above its estimated GF Value™ of HK$0.01.
GuruFocus considers Ares Asia to be Significantly Overvalued.
Key valuation signals for HKSE:00645:
Altman Z-Score: 10.09 (141% above median its 10-year median of 4.18)
GF Value™: HK$0.01 vs. price of HK$0.18 (1700% above fair value)
Industry Position: 400.7% above the Other Energy Sources median (#12 of 130)
No single metric tells the full story. See the HKSE:00645 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.
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