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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 -0.61 is in distress zone. This implies bankruptcy possibility in the next two years.
Zhaoke Ophthalmology has a Altman Z-Score of -0.65, 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 Zhaoke Ophthalmology's Altman Z-Score or its related term are showing as below:
HKSE:06622'
s Altman Z-Score Range Over the Past 10 Years
Min: -1.04 Med: -0.29 Max: 1.2
Current: -0.61
During the past 7 years, Zhaoke Ophthalmology's highest Altman Z-Score was 1.20. The lowest was -1.04. And the median was -0.29.
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.
Zhaoke Ophthalmology Altman Z-Score Related Terms
Zhaoke Ophthalmology Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Zhaoke Ophthalmology'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:06622 vs VRTX, REGN, MRNA: Altman Z-Score Comparison
For the Biotechnology subindustry, Zhaoke Ophthalmology'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.
Zhaoke Ophthalmology Altman Z-Score vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zhaoke Ophthalmology's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Zhaoke Ophthalmology'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.
Zhaoke Ophthalmology'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
*
0.5402
+
1.4
*
-2.1899
+
3.3
*
-0.1033
+
0.6
*
3.4855
+
1.0
*
0.0165
=
-0.65
* 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.
Zhaoke Ophthalmology (HKSE:06622) has a Altman Z-Score of -0.65 as of Sep. 05, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Zhaoke Ophthalmology and its competitors. According to the industry distribution chart, Zhaoke Ophthalmology ranks #656 out of 930 companies in the Biotechnology industry, placing it in the top 70.5%.
Is Zhaoke Ophthalmology's Altman Z-Score too high?
Zhaoke Ophthalmology's current Altman Z-Score is -0.65. Based on the distribution chart, Zhaoke Ophthalmology ranks #656 out of 930 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Zhaoke Ophthalmology has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhaoke Ophthalmology's Altman Z-Score compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Zhaoke Ophthalmology ranks #656 out of 930 companies for Altman Z-Score. This places Zhaoke Ophthalmology in the lower half of its industry. The industry median Altman Z-Score is 2.74. 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 Biotechnology company?
The median Altman Z-Score among Biotechnology companies is 2.74, based on 930 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. 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 Zhaoke Ophthalmology and its competitors. For the Biotechnology industry, the median Altman Z-Score is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhaoke Ophthalmology's current Altman Z-Score is -0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhaoke Ophthalmology stock overvalued right now?
Based on GuruFocus' analysis, Zhaoke Ophthalmology (HKSE:06622) is currently considered Fairly Valued. The stock's GF Value™ is HK$2.60, compared to a current price of HK$2.53 — trading 2.7% below its estimated fair value. The current Altman Z-Score is -0.65. Zhaoke Ophthalmology's overall GF Score™ is 47/100 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 Zhaoke Ophthalmology (HKSE:06622), the current Altman Z-Score is -0.65 as of Sep. 05, 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 Zhaoke Ophthalmology (HKSE:06622) Overvalued in 2026?
Based on GuruFocus' analysis, Zhaoke Ophthalmology stock appears to be undervalued.
The current stock price of HK$2.53 is trading 2.7% below its estimated GF Value™ of HK$2.60.
GuruFocus considers Zhaoke Ophthalmology to be Fairly Valued.
Key valuation signals for HKSE:06622:
Altman Z-Score: -0.65
GF Value™: HK$2.60 vs. price of HK$2.53 (2.7% below fair value)
No single metric tells the full story. See the HKSE:06622 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhaoke Ophthalmology Ltd is an ophthalmic pharmaceutical company dedicated to the research, development, manufacture and commercialization of therapies that address unmet medical needs. The company has three flagship drug assets progressing towards potential market approval: NVK002 for myopia, CsA Ophthalmic Gel for DED and TAB014 for wAMD; and two drug assets in the clinical stage BRIMOCHOL PF for presbyopia and ZKY001 for corneal epithelial defects. Geographically the company operates in Hong Kong, Chinese Mainland, South Korea, and Others, of which it generates maximum revenue from Chinese Mainland.
47GF Score
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