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Precision OpticsPOCI -3.60%73 Altman Z-Score is 0.48 as of Jul. 16, 2026. GuruFocus rates POCI with a GF Score™ of 73/100 and a GF Value™ of $6.34 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 808 Medical Devices & Instruments companies, Precision Optics ranks worse than 76.86% 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 0.56 is in distress zone. This implies bankruptcy possibility in the next two years.
Precision Optics has a Altman Z-Score of 0.48, 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 Precision Optics's Altman Z-Score or its related term are showing as below:
POCI'
s Altman Z-Score Range Over the Past 10 Years
Min: -31.92 Med: -3.61 Max: 0.85
Current: 0.56
During the past 13 years, Precision Optics's highest Altman Z-Score was 0.85. The lowest was -31.92. And the median was -3.61.
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.
Altman Z-Score does not apply to financial companies.
Precision Optics Altman Z-Score Related Terms
Precision Optics Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Precision Optics'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.
POCI vs DXR, NEPH, MLSS: Altman Z-Score Comparison
For the Medical Instruments & Supplies subindustry, Precision Optics'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.
Precision Optics Altman Z-Score vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Precision Optics's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Precision Optics'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.
Precision Optics'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
*
0.3329
+
1.4
*
-1.7959
+
3.3
*
-0.1413
+
0.6
*
3.6671
+
1.0
*
0.8591
=
0.48
* 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.
Precision Optics (POCI) has a Altman Z-Score of 0.48 as of Jul. 16, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Precision Optics and its competitors. According to the industry distribution chart, Precision Optics ranks #621 out of 808 companies in the Medical Devices & Instruments industry, placing it in the top 76.9%.
Is Precision Optics' Altman Z-Score too high?
Precision Optics' current Altman Z-Score is 0.48. The Medical Devices & Instruments industry median Altman Z-Score is 3.02. Precision Optics' value of 0.48 is 84.1% below this industry median. Based on the distribution chart, Precision Optics ranks #621 out of 808 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Precision Optics has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Precision Optics' Altman Z-Score compare to DXR and NEPH?
According to the Medical Devices & Instruments industry distribution chart, Precision Optics ranks #621 out of 808 companies for Altman Z-Score. This places Precision Optics in the lower half of its industry. The industry median Altman Z-Score is 3.02. Precision Optics' value of 0.48 is 84.1% below this benchmark. 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 Medical Devices & Instruments company?
The median Altman Z-Score among Medical Devices & Instruments companies is 3.02, based on 808 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. Precision Optics's current Altman Z-Score of 0.48 is 84.1% below 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 Precision Optics and its competitors. For the Medical Devices & Instruments industry, the median Altman Z-Score is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Optics's current Altman Z-Score is 0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Optics stock overvalued right now?
Based on GuruFocus' analysis, Precision Optics (POCI) is currently considered Modestly Undervalued. The stock's GF Value™ is $6.34, compared to a current price of $4.55 — trading 28.2% below its estimated fair value. The current Altman Z-Score is 0.48 and 84.1% below the Medical Devices & Instruments industry median of 3.02. Precision Optics' overall GF Score™ is 73/100 with 5 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 Precision Optics (POCI), the current Altman Z-Score is 0.48 as of Jul. 16, 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 Precision Optics (POCI) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Optics stock appears to be undervalued.
The current stock price of $4.55 is trading 28.2% below its estimated GF Value™ of $6.34.
GuruFocus considers Precision Optics to be Modestly Undervalued.
Key valuation signals for POCI:
Altman Z-Score: 0.48
GF Value™: $6.34 vs. price of $4.55 (28.2% below fair value)
Industry Position: 84.1% below the Medical Devices & Instruments median (#621 of 808)
No single metric tells the full story. See the POCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Optics Corp Inc is engaged in designing, developing, and manufacturing advanced optical instruments. It manufactures medical products such as endoscopes and endocouplers which incorporate various optical technologies for use in a variety of minimally invasive surgical and diagnostic procedures. The company also produces endoscopes for various applications as well as designs and manufactures custom optical medical devices to satisfy customers' specific requirements. In addition, the company manufactures and sells components and assemblies specially designed for industrial and military use. The company earns the majority of its revenue from the United States.
73GF Score
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