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Kwan On HoldingsHKSE:01559 +8.51% Altman Z-Score is 2.35 as of Jul. 28, 2026, which is 13% below its 10-year median of 2.71. The stock has 3 warning signs investors should review. Among 1,754 Construction companies, Kwan On Holdings ranks worse than 96.98% 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 -0.99 is in distress zone. This implies bankruptcy possibility in the next two years.
Kwan On Holdings has a Altman Z-Score of 2.35, indicating it is in Grey Zones. This implies that Kwan On Holdings 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 Kwan On Holdings's Altman Z-Score or its related term are showing as below:
HKSE:01559'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.99 Med: 2.71 Max: 6.59
Current: -0.99
During the past 13 years, Kwan On Holdings's highest Altman Z-Score was 6.59. The lowest was -0.99. And the median was 2.71.
Kwan On Holdings (HKSE:01559) 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.
Kwan On Holdings Altman Z-Score Related Terms
Kwan On Holdings Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Kwan On Holdings'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.
HKSE:01559 vs PWR, FIX, EME: Altman Z-Score Comparison
For the Engineering & Construction subindustry, Kwan On Holdings'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.
Kwan On Holdings Altman Z-Score vs Construction Industry
For the Construction industry and Industrials sector, Kwan On Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Kwan On Holdings'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.
Kwan On Holdings'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
*
0.2944
+
1.4
*
0
+
3.3
*
-0.4488
+
0.6
*
1.9381
+
1.0
*
2.3186
=
2.35
* 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.
Kwan On Holdings (HKSE:01559) has a Altman Z-Score of 2.35 as of Jul. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Kwan On Holdings and its competitors. This is 13% below median its historical median of 2.71. According to the industry distribution chart, Kwan On Holdings ranks #1701 out of 1754 companies in the Construction industry, placing it in the top 97%.
Is Kwan On Holdings' Altman Z-Score too high?
Kwan On Holdings' current Altman Z-Score of 2.35 is 13% below median its 10-year median of 2.71. The Construction industry median Altman Z-Score is 2.29. Kwan On Holdings' value of 2.35 is 2.6% above this industry median. Based on the distribution chart, Kwan On Holdings ranks #1701 out of 1754 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does Kwan On Holdings' Altman Z-Score compare to PWR and FIX?
According to the Construction industry distribution chart, Kwan On Holdings ranks #1701 out of 1754 companies for Altman Z-Score. This places Kwan On Holdings in the lower half of its industry. The industry median Altman Z-Score is 2.29. Kwan On Holdings' value of 2.35 is 2.6% above this benchmark. While the company's 10-year median is 2.71 vs. the industry median of 2.29, Kwan On Holdings 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 a Construction company?
The median Altman Z-Score among Construction companies is 2.29, based on 1,754 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. Kwan On Holdings's current Altman Z-Score of 2.35 is 2.6% 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 Kwan On Holdings and its competitors. For the Construction industry, the median Altman Z-Score is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwan On Holdings's current Altman Z-Score is 2.35, which is 13% below median its own 10-year median of 2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwan On Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwan On Holdings (HKSE:01559) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.05 — trading 2% above its estimated fair value. The current Altman Z-Score is 2.35, which is 13% below median its 10-year median of 2.71 and 2.6% above the Construction industry median of 2.29. 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 Kwan On Holdings (HKSE:01559), the current Altman Z-Score is 2.35 as of Jul. 28, 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.
Kwan On Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments: Construction, Property development, and Trading. The majority of its revenue is generated from the Construction segment, which is involved in the provision of construction and maintenance works on civil engineering contracts and building works contracts. The Trading segment is engaged in the trading of construction and chemical materials, and the Property development segment develops properties for the sale of residential units, commercial units, and car parking spaces. Geographically, the group generates maximum revenue from Malaysia, and the rest from Hong Kong, the PRC, and Cambodia.
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