Mercia Asset ManagementLSE:MERC -6.09%56 Altman Z-Score is 5.45 as of Jul. 01, 2026, which is 12% below its 10-year median of 6.17. GuruFocus rates LSE:MERC with a GF Score™ of 56/100 and a GF Value™ of £0.32 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 645 Asset Management companies, Mercia Asset Management ranks better than 63.1% 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 5.45 is strong.
Mercia Asset Management has a Altman Z-Score of 5.45, 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 Mercia Asset Management's Altman Z-Score or its related term are showing as below:
LSE:MERC'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.45 Med: 6.17 Max: 16.81
Current: 5.45
During the past 13 years, Mercia Asset Management's highest Altman Z-Score was 16.81. The lowest was 2.45. And the median was 6.17.
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.
LSE:MERC vs BLK, BX, KKR: Altman Z-Score Comparison
For the Asset Management subindustry, Mercia Asset Management'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.
Mercia Asset Management Altman Z-Score vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management'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.
Mercia Asset Management (LSE:MERC) has a Altman Z-Score of 5.45 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Mercia Asset Management and its competitors. This is 12% below median its historical median of 6.17. Over the past decade, Mercia Asset Management's Altman Z-Score has ranged from 2.45 to 16.81. According to the industry distribution chart, Mercia Asset Management ranks #238 out of 645 companies in the Asset Management industry, placing it in the top 36.9%.
Is Mercia Asset Management's Altman Z-Score too high?
Mercia Asset Management's current Altman Z-Score of 5.45 is 12% below median its 10-year median of 6.17. Over the past 10 years, this metric has ranged from a low of 2.45 to a high of 16.81. The Asset Management industry median Altman Z-Score is 3.53. Mercia Asset Management's value of 5.45 is 54.4% above this industry median. Based on the distribution chart, Mercia Asset Management ranks #238 out of 645 companies in the Asset Management industry, which is above the industry midpoint. Overall, Mercia Asset Management has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Altman Z-Score compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #238 out of 645 companies for Altman Z-Score. This puts Mercia Asset Management in the upper half of its industry. The industry median Altman Z-Score is 3.53. Mercia Asset Management's value of 5.45 is 54.4% above this benchmark. Historically, Mercia Asset Management's own Altman Z-Score has ranged from 2.45 to 16.81 over the past decade. While the company's 10-year median is 6.17 vs. the industry median of 3.53, Mercia Asset Management 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 an Asset Management company?
The median Altman Z-Score among Asset Management companies is 3.53, based on 645 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. Mercia Asset Management's current Altman Z-Score of 5.45 is 54.4% 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 Mercia Asset Management and its competitors. For the Asset Management industry, the median Altman Z-Score is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercia Asset Management's current Altman Z-Score is 5.45, which is 12% below median its own 10-year median of 6.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.32, compared to a current price of £0.27 — trading 15.6% below its estimated fair value. The current Altman Z-Score is 5.45, which is 12% below median its 10-year median of 6.17 and 54.4% above the Asset Management industry median of 3.53. Mercia Asset Management's overall GF Score™ is 56/100 with 6 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 Mercia Asset Management (LSE:MERC), the current Altman Z-Score is 5.45 as of Jul. 01, 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.27 is trading 15.6% below its estimated GF Value™ of £0.32.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Altman Z-Score: 5.45 (12% below median its 10-year median of 6.17)
GF Value™: £0.32 vs. price of £0.27 (15.6% below fair value)
Industry Position: 54.4% above the Asset Management median (#238 of 645)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
56GF Score
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