USA Rare EarthMEX:USAR -3.31%12 Altman Z-Score is 11.43 as of Jun. 28, 2026, which is 100% above its 10-year median of 5.72. GuruFocus rates MEX:USAR with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 790 Metals & Mining companies, USA Rare Earth ranks better than 86.84% 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 11.78 is strong.
USA Rare Earth has a Altman Z-Score of 11.43, 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 USA Rare Earth's Altman Z-Score or its related term are showing as below:
MEX:USAR'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.67 Med: 5.72 Max: 11.78
Current: 11.78
During the past 4 years, USA Rare Earth's highest Altman Z-Score was 11.78. The lowest was 3.67. And the median was 5.72.
USA Rare Earth (MEX:USAR) 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.
Altman Z-Score does not apply to financial companies.
USA Rare Earth Altman Z-Score Related Terms
USA Rare Earth Altman Z-Score Historical Data
* Premium members only.
The historical data trend for USA Rare Earth'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.
MEX:USAR vs MTRN, EMAT, TMC: Altman Z-Score Comparison
For the Other Industrial Metals & Mining subindustry, USA Rare Earth'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.
USA Rare Earth Altman Z-Score vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, USA Rare Earth's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where USA Rare Earth'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.
USA Rare Earth'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
*
0.8155
+
1.4
*
-0.2128
+
3.3
*
-0.2002
+
0.6
*
19.014
+
1.0
*
0.0034
=
11.43
* 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.
USA Rare Earth (MEX:USAR) has a Altman Z-Score of 11.43 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on USA Rare Earth and its competitors. This is 100% above median its historical median of 5.72. Over the past decade, USA Rare Earth's Altman Z-Score has ranged from 3.67 to 11.78. According to the industry distribution chart, USA Rare Earth ranks #104 out of 790 companies in the Metals & Mining industry, placing it in the top 13.2%.
Is USA Rare Earth's Altman Z-Score too high?
USA Rare Earth's current Altman Z-Score of 11.43 is 100% above median its 10-year median of 5.72. Over the past 10 years, this metric has ranged from a low of 3.67 to a high of 11.78. The Metals & Mining industry median Altman Z-Score is 3.43. USA Rare Earth's value of 11.43 is 233.2% above this industry median. Based on the distribution chart, USA Rare Earth ranks #104 out of 790 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, USA Rare Earth has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does USA Rare Earth's Altman Z-Score compare to MTRN and EMAT?
According to the Metals & Mining industry distribution chart, USA Rare Earth ranks #104 out of 790 companies for Altman Z-Score. This places USA Rare Earth in the top 13% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.43. USA Rare Earth's value of 11.43 is 233.2% above this benchmark. Historically, USA Rare Earth's own Altman Z-Score has ranged from 3.67 to 11.78 over the past decade. While the company's 10-year median is 5.72 vs. the industry median of 3.43, USA Rare Earth 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 Metals & Mining company?
The median Altman Z-Score among Metals & Mining companies is 3.43, based on 790 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. USA Rare Earth's current Altman Z-Score of 11.43 is 233.2% 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 USA Rare Earth and its competitors. For the Metals & Mining industry, the median Altman Z-Score is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. USA Rare Earth's current Altman Z-Score is 11.43, which is 100% above median its own 10-year median of 5.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is USA Rare Earth stock overvalued right now?
USA Rare Earth (MEX:USAR) has a current Altman Z-Score of 11.43. The current Altman Z-Score is 11.43, which is 100% above median its 10-year median of 5.72 and 233.2% above the Metals & Mining industry median of 3.43. USA Rare Earth's overall GF Score™ is 12/100 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 USA Rare Earth (MEX:USAR), the current Altman Z-Score is 11.43 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.
USA Rare Earth Inc is a vertically integrated, domestic rare earth magnet supply chain that supports the state of energy, mobility, and national security in the United States. USARE is developing an NdFeB magnet manufacturing plant in the United States, and establishing domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its manufacturing plant and market surplus materials to third parties. The company operates in a single reportable operating segment; that segment being the vertically integrated, domestic rare earth element magnet production supply chain. Geographically, it operates in United States, and International. It derives maximum revenue from International.
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