Arcontech Group (LSE:ARC) Altman Z-Score: 5.16 (As of Jun. 24, 2026) — Near Median


LSE:ARC Arcontech Group PLC LSE:ARC
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Price £0.78
GF Value £0.87
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Arcontech Group Altman Z-Score?

Arcontech Group LSE:ARC 50 Altman Z-Score is 5.16 as of Jun. 24, 2026, which is 5% below its 10-year median of 5.46. GuruFocus rates LSE:ARC with a GF Score™ of 50/100 and a GF Value™ of £0.87 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,763 Software companies, Arcontech Group ranks better than 70.18% 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 5.16 is strong.

Arcontech Group has a Altman Z-Score of 5.16, 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 Arcontech Group's Altman Z-Score or its related term are showing as below:

LSE:ARC' s Altman Z-Score Range Over the Past 10 Years
Min: 2.97   Med: 5.46   Max: 9.08
Current: 5.16

During the past 13 years, Arcontech Group's highest Altman Z-Score was 9.08. The lowest was 2.97. And the median was 5.46.


Arcontech Group  (LSE:ARC) 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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Arcontech Group Altman Z-Score Related Terms


Arcontech Group Altman Z-Score Historical Data

* Premium members only.

The historical data trend for Arcontech Group'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.

Arcontech Group Altman Z-Score Chart

Arcontech Group Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.71 5.29 5.93 5.36 5.56

Arcontech Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 5.36 0.00 5.56 0.00

LSE:ARC vs CRM, SHOP, UBER: Altman Z-Score Comparison

For the Software - Application subindustry, Arcontech Group'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.


Arcontech Group Altman Z-Score vs Software Industry

For the Software industry and Technology sector, Arcontech Group's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Arcontech Group's Altman Z-Score falls into.


LSE:ARC
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Arcontech Group PLC LSE:ARC
Altman Z-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Arcontech Group Altman Z-Score Calculation

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.

Arcontech Group'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*0.6023+1.4*0.6119+3.3*0.095+0.6*4.9612+1.0*0.2871
=5.16

* 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.

Trailing Twelve Months (TTM) ended in Jun. 2025:
Total Assets was £10.82 Mil.
Total Current Assets was £8.23 Mil.
Total Current Liabilities was £1.71 Mil.
Retained Earnings was £6.62 Mil.
Pre-Tax Income was £0.99 Mil.
Interest Expense was £-0.04 Mil.
Revenue was £3.11 Mil.
Market Cap (Today) was £10.36 Mil.
Total Liabilities was £2.09 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(8.229 - 1.712)/10.821
=0.6023

X2=Retained Earnings/Total Assets
=6.621/10.821
=0.6119

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(0.987 - -0.041)/10.821
=0.095

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10.364/2.089
=4.9612

X5=Revenue/Total Assets
=3.107/10.821
=0.2871

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Arcontech Group has a Altman Z-Score of 5.16 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Frequently Asked Questions Learn more about Altman Z-Score →
What does a Altman Z-Score of 5.16 mean?
Arcontech Group (LSE:ARC) has a Altman Z-Score of 5.16 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Arcontech Group and its competitors. This is near median its historical median of 5.46. Over the past decade, Arcontech Group's Altman Z-Score has ranged from 2.97 to 9.08. According to the industry distribution chart, Arcontech Group ranks #824 out of 2763 companies in the Software industry, placing it in the top 29.8%.
Is Arcontech Group's Altman Z-Score too high?
Arcontech Group's current Altman Z-Score of 5.16 is near median its 10-year median of 5.46. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 9.08. The Software industry median Altman Z-Score is 3.13. Arcontech Group's value of 5.16 is 64.9% above this industry median. Based on the distribution chart, Arcontech Group ranks #824 out of 2763 companies in the Software industry, which is above the industry midpoint. Overall, Arcontech Group has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcontech Group's Altman Z-Score compare to CRM and SHOP?
According to the Software industry distribution chart, Arcontech Group ranks #824 out of 2763 companies for Altman Z-Score. This puts Arcontech Group in the upper half of its industry. The industry median Altman Z-Score is 3.13. Arcontech Group's value of 5.16 is 64.9% above this benchmark. Historically, Arcontech Group's own Altman Z-Score has ranged from 2.97 to 9.08 over the past decade. While the company's 10-year median is 5.46 vs. the industry median of 3.13, Arcontech Group 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 Software company?
The median Altman Z-Score among Software companies is 3.13, based on 2,763 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. Arcontech Group's current Altman Z-Score of 5.16 is 64.9% 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 Arcontech Group 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. Arcontech Group's current Altman Z-Score is 5.16, which is near median its own 10-year median of 5.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcontech Group stock overvalued right now?
Based on GuruFocus' analysis, Arcontech Group (LSE:ARC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.87, compared to a current price of £0.78 — trading 10.9% below its estimated fair value. The current Altman Z-Score is 5.16, which is near median its 10-year median of 5.46 and 64.9% above the Software industry median of 3.13. Arcontech Group's overall GF Score™ is 50/100 with 1 warning sign 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 Arcontech Group (LSE:ARC), the current Altman Z-Score is 5.16 as of Jun. 24, 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 Arcontech Group (LSE:ARC) Overvalued in 2026?

Based on GuruFocus' analysis, Arcontech Group stock appears to be undervalued. The current stock price of £0.78 is trading 10.9% below its estimated GF Value™ of £0.87. GuruFocus considers Arcontech Group to be Modestly Undervalued.

Key valuation signals for LSE:ARC:

  • Altman Z-Score: 5.16 (near median its 10-year median of 5.46)
  • GF Value™: £0.87 vs. price of £0.78 (10.9% below fair value)
  • GF Score™: 50/100 with 1 warning sign
  • Industry Position: 64.9% above the Software median (#824 of 2763)

No single metric tells the full story. See the LSE:ARC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arcontech Group Business Description

Other Exchanges KTSA:Germany
Address 11-21 Paul Street, 1st Floor, London, GBR, EC2A 4JU
Arcontech Group PLC is a real-time software company. The company develops and sells products and bespoke systems for collection, processing, distribution and presentation and time-sensitive financial markets data and provides computer consultancy services. Its products include Cityvision, Excelerator, Cityvison Cache, Cityvision Relay, and others. The company has a software development and license fees segment. The company operates in UK, Europe (excluding UK), Africa, North America, Australia, and Asia Pacific.
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Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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