Fonterra Co-operative GroupNZSE:FCG -1.17%65 Altman Z-Score is 2.83 as of Jul. 04, 2026, which is 44% above its 10-year median of 1.97. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.96 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,928 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 50.57% 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.
Warning Sign:
Altman Z-score of 2.85 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.
Fonterra Co-operative Group has a Altman Z-Score of 2.83, indicating it is in Grey Zones. This implies that Fonterra Co-operative 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 Fonterra Co-operative Group's Altman Z-Score or its related term are showing as below:
NZSE:FCG'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.58 Med: 1.97 Max: 2.85
Current: 2.85
During the past 13 years, Fonterra Co-operative Group's highest Altman Z-Score was 2.85. The lowest was 1.58. And the median was 1.97.
Fonterra Co-operative Group (NZSE:FCG) 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.
NZSE:FCG vs KHC, GIS, HRL: Altman Z-Score Comparison
For the Packaged Foods subindustry, Fonterra Co-operative 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.
Fonterra Co-operative Group Altman Z-Score vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's Altman Z-Score falls into.
Fonterra Co-operative 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.
Fonterra Co-operative Group (NZSE:FCG) has a Altman Z-Score of 2.83 as of Jul. 04, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Fonterra Co-operative Group and its competitors. This is 44% above median its historical median of 1.97. Over the past decade, Fonterra Co-operative Group's Altman Z-Score has ranged from 1.58 to 2.85. According to the industry distribution chart, Fonterra Co-operative Group ranks #953 out of 1928 companies in the Consumer Packaged Goods industry, placing it in the top 49.4%.
Is Fonterra Co-operative Group's Altman Z-Score too high?
Fonterra Co-operative Group's current Altman Z-Score of 2.83 is 44% above median its 10-year median of 1.97. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 2.85. The Consumer Packaged Goods industry median Altman Z-Score is 2.83. Fonterra Co-operative Group's value of 2.83 is 0% at this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #953 out of 1928 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Altman Z-Score compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #953 out of 1928 companies for Altman Z-Score. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Altman Z-Score is 2.83. Fonterra Co-operative Group's value of 2.83 is 0% at this benchmark. Historically, Fonterra Co-operative Group's own Altman Z-Score has ranged from 1.58 to 2.85 over the past decade. While the company's 10-year median is 1.97 vs. the industry median of 2.83, Fonterra Co-operative Group has consistently been at 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 Consumer Packaged Goods company?
The median Altman Z-Score among Consumer Packaged Goods companies is 2.83, based on 1,928 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. Fonterra Co-operative Group's current Altman Z-Score of 2.83 is 0% at 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 Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Altman Z-Score is 2.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Altman Z-Score is 2.83, which is 44% above median its own 10-year median of 1.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.96, compared to a current price of NZ$4.21 — trading 42.2% above its estimated fair value. The current Altman Z-Score is 2.83, which is 44% above median its 10-year median of 1.97 and 0% at the Consumer Packaged Goods industry median of 2.83. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 6 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 Fonterra Co-operative Group (NZSE:FCG), the current Altman Z-Score is 2.83 as of Jul. 04, 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.21 is trading 42.2% above its estimated GF Value™ of NZ$2.96.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Altman Z-Score: 2.83 (44% above median its 10-year median of 1.97)
GF Value™: NZ$2.96 vs. price of NZ$4.21 (42.2% above fair value)
Industry Position: 0% at the Consumer Packaged Goods median (#953 of 1928)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
65GF Score
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