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 -1.02 is in distress zone. This implies bankruptcy possibility in the next two years.
HeartCore Enterprises has a Altman Z-Score of -1.02, 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 HeartCore Enterprises's Altman Z-Score or its related term are showing as below:
HTCR'
s Altman Z-Score Range Over the Past 10 Years
Min: -3.05 Med: 0.07 Max: 4.57
Current: -1.02
During the past 7 years, HeartCore Enterprises's highest Altman Z-Score was 4.57. The lowest was -3.05. And the median was 0.07.
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.
HeartCore Enterprises Altman Z-Score Related Terms
HeartCore Enterprises Altman Z-Score Historical Data
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The historical data trend for HeartCore Enterprises'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.
HTCR vs ZENVF, MFON, GDLG: Altman Z-Score Comparison
For the Software - Application subindustry, HeartCore Enterprises'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.
HeartCore Enterprises Altman Z-Score vs Software Industry
For the Software industry and Technology sector, HeartCore Enterprises's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where HeartCore Enterprises'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.
HeartCore Enterprises (HTCR) has a Altman Z-Score of -1.02 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on HeartCore Enterprises and its competitors. According to the industry distribution chart, HeartCore Enterprises ranks #2392 out of 2765 companies in the Software industry, placing it in the top 86.5%.
Is HeartCore Enterprises' Altman Z-Score too high?
HeartCore Enterprises' current Altman Z-Score is -1.02. Based on the distribution chart, HeartCore Enterprises ranks #2392 out of 2765 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, HeartCore Enterprises has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HeartCore Enterprises' Altman Z-Score compare to ZENVF and MFON?
According to the Software industry distribution chart, HeartCore Enterprises ranks #2392 out of 2765 companies for Altman Z-Score. This places HeartCore Enterprises in the lower half of its industry. The industry median Altman Z-Score is 3.13. 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 Software company?
The median Altman Z-Score among Software companies is 3.13, based on 2,765 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 HeartCore Enterprises and its competitors. For the Software industry, the median Altman Z-Score is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HeartCore Enterprises's current Altman Z-Score is -1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HeartCore Enterprises stock overvalued right now?
Based on GuruFocus' analysis, HeartCore Enterprises (HTCR) is currently considered Possible Value Trap. The stock's GF Value™ is $8.64, compared to a current price of $3.23 — trading 62.6% below its estimated fair value. The current Altman Z-Score is -1.02. HeartCore Enterprises' overall GF Score™ is 49/100 with 8 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 HeartCore Enterprises (HTCR), the current Altman Z-Score is -1.02 as of Jun. 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.
Is HeartCore Enterprises (HTCR) Overvalued in 2026?
Based on GuruFocus' analysis, HeartCore Enterprises stock appears to be undervalued.
The current stock price of $3.23 is trading 62.6% below its estimated GF Value™ of $8.64.
GuruFocus considers HeartCore Enterprises to be Possible Value Trap.
Key valuation signals for HTCR:
Altman Z-Score: -1.02
GF Value™: $8.64 vs. price of $3.23 (62.6% below fair value)
No single metric tells the full story. See the HTCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HeartCore Enterprises Inc is a software development company providing solutions for digital transformation (DX). It develops, sells, and maintains CMS and CXM platforms using digital marketing technology, RPA, process mining solutions, myInvenio and Apromore, task mining solution CONTROLIO, and 3D-VR services including Matterport and VR360. The company also provides management consulting, education, services, and support to help customers succeed with the CXM Platform. It operates through two business units, the CX division for customer experience management and the DX division for digital transformation, which provides robotics process automation, process mining, and task mining. Its products include VR360, myInvenio, Apromore, and others, with maximum revenue from the United States.
49GF Score
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