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Realtyome (Realtyome) Altman Z-Score : 0.98 (As of Jun. 25, 2024)


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What is Realtyome 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.

Warning Sign:

Altman Z-score of 0.98 is in distress zone. This implies bankruptcy possibility in the next two years.

Realtyome has a Altman Z-Score of 0.98, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Realtyome's Altman Z-Score or its related term are showing as below:

O' s Altman Z-Score Range Over the Past 10 Years
Min: 0.95   Med: 1.3   Max: 1.89
Current: 0.98

During the past 13 years, Realtyome's highest Altman Z-Score was 1.89. The lowest was 0.95. And the median was 1.30.


Realtyome Altman Z-Score Historical Data

The historical data trend for Realtyome'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.

Realtyome Altman Z-Score Chart

Realtyome Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.57 1.34 1.34 1.17 1.07

Realtyome Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.18 1.14 0.95 1.07 0.99

Competitive Comparison of Realtyome's Altman Z-Score

For the REIT - Retail subindustry, Realtyome'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.


Realtyome's Altman Z-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Realtyome's Altman Z-Score distribution charts can be found below:

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



Realtyome 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.

Realtyome'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*0.0184+1.4*-0.1068+3.3*0.0245+0.6*1.6042+1.0*0.0643
=0.98

* 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 Mar. 2024:
Total Assets was $68,328 Mil.
Total Current Assets was $3,531 Mil.
Total Current Liabilities was $2,274 Mil.
Retained Earnings was $-7,300 Mil.
Pre-Tax Income was 149.401 + 235.565 + 245.213 + 210.085 = $840 Mil.
Interest Expense was -239.524 + -219.798 + -195.813 + -177.846 = $-833 Mil.
Revenue was 1260.485 + 1076.285 + 1039.104 + 1019.205 = $4,395 Mil.
Market Cap (Today) was $46,539 Mil.
Total Liabilities was $29,010 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
=(3530.669 - 2273.688)/68328.249
=0.0184

X2=Retained Earnings/Total Assets
=-7299.514/68328.249
=-0.1068

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(840.264 - -832.981)/68328.249
=0.0245

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=46538.541/29009.765
=1.6042

X5=Revenue/Total Assets
=4395.079/68328.249
=0.0643

The zones of discrimination were as such:

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

Realtyome has a Altman Z-Score of 0.98 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Realtyome  (NYSE:O) 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.


Realtyome Altman Z-Score Related Terms

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


Realtyome (Realtyome) Business Description

Address
11995 El Camino Real, San Diego, CA, USA, 92130
Realty Income owns roughly 13,100 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states and Puerto Rico and are leased to 250 tenants from 47 industries. Recent acquisitions have added industrial, gaming, office, manufacturing, and distribution properties, which make up roughly 17% of revenue.
Executives
A. Larry Chapman director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Neil Abraham officer: EVP, CIO 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Gregory J. Whyte officer: EVP, Chief Operating Officer C/O TIER REIT, INC., 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Mary Hogan Preusse director C/O KIMCO REALTY CORP., 3333 NEW HYDE PARK ROAD, NEW HYDE PARK NY 11042
Priscilla Almodovar director 45 WEST 10TH STREET, NEW YORK NY 10011
Shannon Kehle officer: EVP, Chief People Officer 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Ronald Merriman director 6175 NANCY RIDGE, SAN DIEGO CA 92121
Gregory Mclaughlin director 220 WEST CREST STREET, ESCONDIDO CA 92025
Jacqueline Valerie Brady director 53 CREEKVIEW LANE, YARDLEY PA 19067
Michelle Bushore officer: EVP, CLO, GC & Secretary 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Priya Cherian Huskins director 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Christie B. Kelly director 600 E. 96TH ST., #100, INDIANAPOLIS IN 46240
Paul M Meurer officer: EVP CFO & Treasure
Michael R Pfeiffer officer: EVP Gen. Counsel & Sec.
Benjamin N Fox officer: SVP, Asset & Port. Mgmt. 11995 EL CAMINO REAL, SAN DIEGO CA 92130

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