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ChampionX (ChampionX) Altman Z-Score : 4.22 (As of Apr. 25, 2024)


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What is ChampionX Altman Z-Score?

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 4.19 is strong.

ChampionX has a Altman Z-Score of 4.22, 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 ChampionX's Altman Z-Score or its related term are showing as below:

CHX' s Altman Z-Score Range Over the Past 10 Years
Min: 0.82   Med: 2.46   Max: 4.19
Current: 4.19

During the past 9 years, ChampionX's highest Altman Z-Score was 4.19. The lowest was 0.82. And the median was 2.46.


ChampionX Altman Z-Score Historical Data

The historical data trend for ChampionX'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.

* Premium members only.

ChampionX Altman Z-Score Chart

ChampionX Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only 2.79 0.82 2.46 3.39 3.81

ChampionX Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 3.39 3.41 3.85 4.26 3.81

Competitive Comparison of ChampionX's Altman Z-Score

For the Oil & Gas Equipment & Services subindustry, ChampionX'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.


ChampionX's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, ChampionX's Altman Z-Score distribution charts can be found below:

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



ChampionX 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.

ChampionX'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*0.1983+1.4*-0.1406+3.3*0.1476+0.6*4.2161+1.0*1.1594
=4.22

* 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 Dec. 2023:
Total Assets was $3,242 Mil.
Total Current Assets was $1,425 Mil.
Total Current Liabilities was $783 Mil.
Retained Earnings was $-456 Mil.
Pre-Tax Income was 113.928 + 109.801 + 108.282 + 91.813 = $424 Mil.
Interest Expense was -13.808 + -13.744 + -14.544 + -12.466 = $-55 Mil.
Revenue was 943.555 + 939.783 + 926.6 + 948.347 = $3,758 Mil.
Market Cap (Today) was $6,664 Mil.
Total Liabilities was $1,581 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
=(1425.417 - 782.749)/3241.702
=0.1983

X2=Retained Earnings/Total Assets
=-455.676/3241.702
=-0.1406

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(423.824 - -54.562)/3241.702
=0.1476

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6664.274/1580.671
=4.2161

X5=Revenue/Total Assets
=3758.285/3241.702
=1.1594

The zones of discrimination were as such:

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

ChampionX has a Altman Z-Score of 4.22 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.


ChampionX  (NAS:CHX) 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.


ChampionX Altman Z-Score Related Terms

Thank you for viewing the detailed overview of ChampionX's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


ChampionX (ChampionX) Business Description

Traded in Other Exchanges
Address
2445 Technology Forest Boulevard, Building 4, 12th Floor, The Woodlands, TX, USA, 77381
ChampionX provides chemical solutions and equipment for onshore and offshore oil and gas production. Its engineering expertise spans the well life cycle, but the firm maintains a particular focus on the production phase. Key offerings include artificial lift services and drilling technologies, specializing in polycrystalline diamond cutter inserts. ChampionX was formed after Apergy acquired its chemical technologies business from Ecolab in 2020.
Executives
Deric D. Bryant officer: See remarks 1 ECOLAB PLACE, ST. PAUL MN 55102
Sivasankaran Somasundaram director, officer: President & CEO C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381
William Jr. O'dell officer: See remarks 2445 TECHNOLOGY FOREST BOULEVARD, BUILDING 4, 12TH FLOOR, THE WOODLANDS TX 77381
Elaine M Pickle director ONE ENERGY PLAZA, DETROIT MI 48226
Fierro A Carlos director 910 LOUISIANA STREET, HOUSTON TX 77002
Paul E Mahoney officer: See Remarks C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381
Antoine Marcos officer: VP, Corp Controller, CAO 2445 TECHNOLOGY FOREST BOULEVARD, BUILDING 4, 12TH FLOOR, THE WOODLANDS TX 77381
Stephen M. Todd director C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 606515
Julia Wright officer: Senior VP, GC & Secretary C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381
Heidi S Alderman director C/O OLIN CORPORATION, 190 CARONDELET PLZ, STE 1530, CLAYTON MO 63105
Stuart D Porter director 200 CLARENDON ST, 25TH FLOOR, BOSTON MA 02116
Jordan Zweig officer: SVP & Chief HR Officer 2445 TECHNOLOGY FOREST BOULEVARD, BUILDING 4, 12TH FLOOR, THE WOODLANDS TX 77381
Syed Raza officer: SVP & Chief Digital Officer C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381
Amy Thompson Broussard officer: Senior VP & Chief HR Officer C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381
Shankar Annamalai officer: Senior VP Operations C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381

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