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 1.87 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Babcock International Group has a Altman Z-Score of 1.84, indicating it is in Grey Zones. This implies that Babcock International Group is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
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 Babcock International Group's Altman Z-Score or its related term are showing as below:
MEX:BABBN'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.8 Med: 1.26 Max: 2.03
Current: 1.87
During the past 13 years, Babcock International Group's highest Altman Z-Score was 2.03. The lowest was -0.80. And the median was 1.26.
Babcock International Group (MEX:BABBN) 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.
MEX:BABBN vs PWR, FIX, EME: Altman Z-Score Comparison
For the Engineering & Construction subindustry, Babcock International 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.
Babcock International Group Altman Z-Score vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Babcock International Group's Altman Z-Score falls into.
Babcock International 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.
* 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.
Babcock International Group (MEX:BABBN) has a Altman Z-Score of 1.84 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Babcock International Group and its competitors. This is 46% above median its historical median of 1.26. According to the industry distribution chart, Babcock International Group ranks #1075 out of 1758 companies in the Construction industry, placing it in the top 61.1%.
Is Babcock International Group's Altman Z-Score too high?
Babcock International Group's current Altman Z-Score of 1.84 is 46% above median its 10-year median of 1.26. The Construction industry median Altman Z-Score is 2.35. Babcock International Group's value of 1.84 is 21.7% below this industry median. Based on the distribution chart, Babcock International Group ranks #1075 out of 1758 companies in the Construction industry, which is below the industry midpoint. Overall, Babcock International Group has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's Altman Z-Score compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #1075 out of 1758 companies for Altman Z-Score. This places Babcock International Group in the lower half of its industry. The industry median Altman Z-Score is 2.35. Babcock International Group's value of 1.84 is 21.7% below this benchmark. While the company's 10-year median is 1.26 vs. the industry median of 2.35, Babcock International Group has consistently been below 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 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. Babcock International Group's current Altman Z-Score of 1.84 is 21.7% 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 Babcock International Group 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. Babcock International Group's current Altman Z-Score is 1.84, which is 46% above median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock International Group stock overvalued right now?
Babcock International Group (MEX:BABBN) has a current Altman Z-Score of 1.84. The stock's GF Value™ is MXN52.85, compared to a current price of MXN82.68 — trading 56.4% above its estimated fair value. The current Altman Z-Score is 1.84, which is 46% above median its 10-year median of 1.26 and 21.7% below the Construction industry median of 2.35. Babcock International Group's overall GF Score™ is 67/100 with 2 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 Babcock International Group (MEX:BABBN), the current Altman Z-Score is 1.84 as of Jun. 26, 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 Babcock International Group (MEX:BABBN) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of MXN82.68 is trading 56.4% above its estimated GF Value™ of MXN52.85.
Key valuation signals for MEX:BABBN:
Altman Z-Score: 1.84 (46% above median its 10-year median of 1.26)
GF Value™: MXN52.85 vs. price of MXN82.68 (56.4% above fair value)
Industry Position: 21.7% below the Construction median (#1075 of 1758)
No single metric tells the full story. See the MEX:BABBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock International Group PLC is a British engineering company specializing in the construction and decommissioning of nuclear power plants and submarines; maintenance support; fleet management for aviation, marine, and land; and provision of technical training and emergency services. The company's operating segments include Marine, Land, Aviation, and Nuclear. It generates maximum revenue from the Nuclear segment, which is engaged in providing engineering support to the United Kingdom's nuclear submarine fleet, decommissioning nuclear facilities, supporting nuclear generation, and new build projects. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of Europe, Africa, North America, Australasia, and the Rest of the World.
67GF Score
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