PFPT has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
PFPT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 2.64 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.
Proofpoint has a Altman Z-Score of 2.64, indicating it is in Grey Zones. This implies that Proofpoint 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 Proofpoint's Altman Z-Score or its related term are showing as below:
During the past 12 years, Proofpoint's highest Altman Z-Score was 4.94. The lowest was -4.18. And the median was 2.27.
The historical data trend for Proofpoint'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.
Proofpoint Annual Data | |||||||||||||||||||||
Trend | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | |||||||||||
Altman Z-Score | Get a 7-Day Free Trial | 2.04 | 3.45 | 3.35 | 2.28 | 2.26 |
Proofpoint Quarterly Data | ||||||||||||||||||||
Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | |
Altman Z-Score | Get a 7-Day Free Trial | 2.23 | 2.06 | 2.26 | 1.96 | 2.61 |
For the Software - Infrastructure subindustry, Proofpoint'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.
For the Software industry and Technology sector, Proofpoint's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Proofpoint'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.
Proofpoint'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 | * | 0.134 | + | 1.4 | * | -0.3771 | + | 3.3 | * | -0.0543 | + | 0.6 | * | 4.5613 | + | 1.0 | * | 0.4532 | |
= | 2.64 |
* 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 Jun. 2021:
Total Assets was $2,512 Mil.
Total Current Assets was $1,236 Mil.
Total Current Liabilities was $899 Mil.
Retained Earnings was $-947 Mil.
Pre-Tax Income was -50.603 + -43.225 + -33.551 + -30.335 = $-158 Mil.
Interest Expense was -1.533 + -1.528 + -9.202 + -9.106 = $-21 Mil.
Revenue was 308.653 + 287.831 + 275.129 + 266.669 = $1,138 Mil.
Market Cap (Today) was $10,160 Mil.
Total Liabilities was $2,227 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 | |
= | (1235.826 - 899.185) | / | 2511.745 | |
= | 0.134 |
X2 | = | Retained Earnings | / | Total Assets |
= | -947.137 | / | 2511.745 | |
= | -0.3771 |
X3 | = | Earnings Before Interest and Taxes | / | Total Assets |
= | (Pre-Tax Income - Interest Expense) | / | Total Assets | |
= | (-157.714 - -21.369) | / | 2511.745 | |
= | -0.0543 |
X4 | = | Market Value Equity | / | Book Value of Total Liabilities |
= | Market Cap | / | Total Liabilities | |
= | 10159.616 | / | 2227.339 | |
= | 4.5613 |
X5 | = | Revenue | / | Total Assets |
= | 1138.282 | / | 2511.745 | |
= | 0.4532 |
The zones of discrimination were as such:
Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones
Proofpoint has a Altman Z-Score of 2.64 indicating it is in Grey Zones.
Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.
Proofpoint (NAS:PFPT) 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.
Thank you for viewing the detailed overview of Proofpoint's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Robert Darren Lee | officer: EVP/GM Compliance/Digital Risk | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Gary Steele | director, officer: Chairman and CEO | C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089 |
David Knight | officer: EVP/GM, Security Products | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Ashan Willy | officer: EVP/GM-Sec Prd & Svc Grp | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Auvil Paul R. Iii | officer: Chief Financial Officer | C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089 |
Dana L Evan | director | 550 EAST TIMPANOGOS CIRCLE, *, OREM UT 84097 |
Blake P. Salle | officer: EVP, Worldwide Sales | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Bhagwat Swaroop | officer: EVP Indus. Solutions/Bus. Dev. | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Kevin Harvey | director | 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025 |
Richard Scott Herren | director | 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309 |
Leyla D. Seka | director | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Kristen Gil | director | C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343 |
Michael M Johnson | director | C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089 |
Richard P Wallace | director | KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134 |
Jonathan D Feiber | director | 3000 SAND HILL ROAD BLDG 1, MENLO PARK CA 94025 |
From GuruFocus
By Marketwired Marketwired • 05-12-2021
By GuruFocus Research GuruFocus Editor • 04-29-2021
By Marketwired Marketwired • 08-17-2021
By PRNewswire PRNewswire • 04-26-2021
By Marketwired Marketwired • 05-17-2021
By Marketwired Marketwired • 04-28-2021
By Marketwired Marketwired • 06-08-2021
By Marketwired Marketwired • 05-18-2021
By Marketwired Marketwired • 05-06-2021
By Marketwired Marketwired • 06-10-2021
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.