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What is Zhongzhi Pharmaceutical Holdings Altman Z-Score?
Zhongzhi Pharmaceutical HoldingsHKSE:03737 47 Altman Z-Score is 2.37 as of Sep. 02, 2026, which is 25% below its 10-year median of 3.14. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 953 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks worse than 63.27% 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 2.35 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.
Zhongzhi Pharmaceutical Holdings has a Altman Z-Score of 2.37, indicating it is in Grey Zones. This implies that Zhongzhi Pharmaceutical 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 Zhongzhi Pharmaceutical Holdings's Altman Z-Score or its related term are showing as below:
HKSE:03737'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.24 Med: 3.14 Max: 5.83
Current: 2.35
During the past 12 years, Zhongzhi Pharmaceutical Holdings's highest Altman Z-Score was 5.83. The lowest was 2.24. And the median was 3.14.
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.
For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings Altman Z-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical 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.
* 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.
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a Altman Z-Score of 2.37 as of Sep. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Zhongzhi Pharmaceutical Holdings and its competitors. This is 25% below median its historical median of 3.14. Over the past decade, Zhongzhi Pharmaceutical Holdings' Altman Z-Score has ranged from 2.24 to 5.83. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #603 out of 953 companies in the Drug Manufacturers industry, placing it in the top 63.3%.
Is Zhongzhi Pharmaceutical Holdings' Altman Z-Score too high?
Zhongzhi Pharmaceutical Holdings' current Altman Z-Score of 2.37 is 25% below median its 10-year median of 3.14. Over the past 10 years, this metric has ranged from a low of 2.24 to a high of 5.83. The Drug Manufacturers industry median Altman Z-Score is 3.32. Zhongzhi Pharmaceutical Holdings' value of 2.37 is 28.6% below this industry median. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #603 out of 953 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' Altman Z-Score compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #603 out of 953 companies for Altman Z-Score. This places Zhongzhi Pharmaceutical Holdings in the lower half of its industry. The industry median Altman Z-Score is 3.32. Zhongzhi Pharmaceutical Holdings' value of 2.37 is 28.6% below this benchmark. Historically, Zhongzhi Pharmaceutical Holdings' own Altman Z-Score has ranged from 2.24 to 5.83 over the past decade. While the company's 10-year median is 3.14 vs. the industry median of 3.32, Zhongzhi Pharmaceutical Holdings 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 Drug Manufacturers company?
The median Altman Z-Score among Drug Manufacturers companies is 3.32, based on 953 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. Zhongzhi Pharmaceutical Holdings's current Altman Z-Score of 2.37 is 28.6% 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 Zhongzhi Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median Altman Z-Score is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzhi Pharmaceutical Holdings's current Altman Z-Score is 2.37, which is 25% below median its own 10-year median of 3.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current Altman Z-Score is 2.37, which is 25% below median its 10-year median of 3.14 and 28.6% below the Drug Manufacturers industry median of 3.32. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current Altman Z-Score is 2.37 as of Sep. 02, 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89.
GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:03737:
Altman Z-Score: 2.37 (25% below median its 10-year median of 3.14)
GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
Industry Position: 28.6% below the Drug Manufacturers median (#603 of 953)
No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score
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