McDermott InternationalMCDIF -21.13%30 Altman Z-Score is 0.58 as of Jun. 27, 2026. GuruFocus rates MCDIF with a GF Score™ of 30/100. The stock has 1 warning sign investors should review. Among 1,758 Construction companies, McDermott International ranks worse than 56882.76% 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.
McDermott International has a Altman Z-Score of 0.58, 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 McDermott International's Altman Z-Score or its related term are showing as below:
McDermott International (OTCPK:MCDIF) 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.
* 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.
McDermott International Altman Z-Score Chart
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MCDIF vs CDNL, ORN, BWMN: Altman Z-Score Comparison
For the Engineering & Construction subindustry, McDermott International'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.
McDermott International Altman Z-Score vs Construction Industry
For the Construction industry and Industrials sector, McDermott International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where McDermott International's Altman Z-Score falls into.
McDermott International 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.
* 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.
McDermott International (MCDIF) has a Altman Z-Score of 0.58 as of Jun. 27, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on McDermott International and its competitors. According to the industry distribution chart, McDermott International ranks #999999 out of 1758 companies in the Construction industry.
Is McDermott International's Altman Z-Score too high?
McDermott International's current Altman Z-Score is 0.58. The Construction industry median Altman Z-Score is 2.35. McDermott International's value of 0.58 is 75.3% below this industry median. Based on the distribution chart, McDermott International ranks #999999 out of 1758 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, McDermott International has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does McDermott International's Altman Z-Score compare to CDNL and ORN?
According to the Construction industry distribution chart, McDermott International ranks #999999 out of 1758 companies for Altman Z-Score. This places McDermott International in the lower half of its industry. The industry median Altman Z-Score is 2.35. McDermott International's value of 0.58 is 75.3% below this benchmark. 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 Construction company?
The median Altman Z-Score among Construction companies is 2.35, based on 1,758 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. McDermott International's current Altman Z-Score of 0.58 is 75.3% 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 McDermott International and its competitors. For the Construction industry, the median Altman Z-Score is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDermott International's current Altman Z-Score is 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDermott International stock overvalued right now?
McDermott International (MCDIF) has a current Altman Z-Score of 0.58. The current Altman Z-Score is 0.58 and 75.3% below the Construction industry median of 2.35. McDermott International's overall GF Score™ is 30/100 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 McDermott International (MCDIF), the current Altman Z-Score is 0.58 as of Jun. 27, 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.
McDermott International Ltd is a fully integrated provider of engineering, procurement, construction, and installation (EPCI) solutions to the energy industry globally. The company designs and builds infrastructure to transport and process oil and gas, covering offshore, subsea, liquefied natural gas (LNG), and downstream oil and gas projects, including fixed, floating, and subsea production facilities, pipelines, storage systems, and processing plants. It also provides energy transition and sustainable engineering solutions. The company operates through the Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities segments, serving national and other oil and gas companies across energy-producing regions, and generates the majority of its revenue from United States.
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