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Pzena Investment Management (Pzena Investment Management) Altman Z-Score : 2.70 (As of May. 13, 2024)


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What is Pzena Investment Management 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.

Pzena Investment Management has a Altman Z-Score of 2.70, indicating it is in Grey Zones. This implies that Pzena Investment Management 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 Pzena Investment Management's Altman Z-Score or its related term are showing as below:


Pzena Investment Management Altman Z-Score Historical Data

The historical data trend for Pzena Investment Management'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.

Pzena Investment Management Altman Z-Score Chart

Pzena Investment Management Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.04 4.21 3.09 3.31 3.91

Pzena Investment Management Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 4.38 3.91 4.10 3.01 -

Competitive Comparison of Pzena Investment Management's Altman Z-Score

For the Asset Management subindustry, Pzena Investment Management'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.


Pzena Investment Management's Altman Z-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Pzena Investment Management's Altman Z-Score distribution charts can be found below:

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



Pzena Investment Management 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.

Pzena Investment Management'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*0.2646+1.4*0+3.3*0.3055+0.6*1.1124+1.0*0.7084
=2.70

* 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. 2022:
Total Assets was $279.0 Mil.
Total Current Assets was $123.6 Mil.
Total Current Liabilities was $49.8 Mil.
Retained Earnings was $0.0 Mil.
Pre-Tax Income was 13.138 + 16.929 + 26.707 + 28.457 = $85.2 Mil.
Interest Expense was 0 + 0 + 0 + -0.002 = $-0.0 Mil.
Revenue was 45.244 + 48.697 + 52.76 + 50.964 = $197.7 Mil.
Market Cap (Today) was $161.1 Mil.
Total Liabilities was $144.8 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
=(123.643 - 49.81)/279.034
=0.2646

X2=Retained Earnings/Total Assets
=0/279.034
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(85.231 - -0.002)/279.034
=0.3055

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=161.123/144.838
=1.1124

X5=Revenue/Total Assets
=197.665/279.034
=0.7084

The zones of discrimination were as such:

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

Pzena Investment Management has a Altman Z-Score of 2.70 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.


Pzena Investment Management  (NYSE:PZN) 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.


Pzena Investment Management Altman Z-Score Related Terms

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Pzena Investment Management (Pzena Investment Management) Business Description

Traded in Other Exchanges
N/A
Address
320 Park Avenue, 8th Floor, New York, NY, USA, 10022
Pzena Investment Management Inc is a United States (U.S) based investment management company. The company adopts value-oriented investment strategies across a wide range of market capitalizations in both U.S. and non-U.S. capital markets. It manages separate accounts on behalf of institutions; acts as the sub-investment adviser for a variety of Securities and Exchange Commission registered mutual funds and non-U.S. funds, and act as investment adviser for the Pzena Mutual Funds as well as certain private placement funds. In addition, the company offers institutional investment products to public and corporate pension funds, endowments, foundations, and certain commingled vehicles geared toward institutional investors. The primary source of the revenue is management fees received.
Executives
Shavar Dakel Jeffries director 50 HALSEY STREET, APT. 708T, NEWARK NJ 07102
Chenyu Caroline Cai director, officer: Executive Vice President 320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
Joel Greenblatt director 535 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Steven M Galbraith director C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Richard P. Meyerowich director C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Evan K. Fire officer: Chief Operating Officer PZENA INVESTMENT MANAGEMENT, INC., 320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
John Paul Goetz director, officer: President and Co-CIO C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Richard Stanton Pzena director, officer: Chairman, CEO and Co-CIO C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
William Louis Lipsey director, officer: Pres., Marketing/Client Serv. C/O PZENA INVESTMENT MANAGEMENT LLC, 320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
Jessica R Doran officer: Chief Financial Officer 320 PARK AVENUE, 8TH FLOOR, C/O PZENA INVESTMENT MANAGEMENT, LLC, NEW YORK NY 10022
Punch Howard D. Jr 10 percent owner 7701 FRANCE AVE. SOUTH, SUITE 300, EDINA MN 55435
Punch & Associates Investment Management, Inc. 10 percent owner 7701 FRANCE AVE. SOUTH, SUITE 300, EDINA MN 55435
Charles D Johnston director C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Gary J Bachman officer: Chief Financial Officer C/O PZENA INVESTMENT MANAGEMENT, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Michael D Peterson officer: Executive Vice President C/O PZENA INVESTMENT MANAGEMENT, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036

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