Red Cat HoldingsRCAT -8.34%80 Altman Z-Score is 18.83 as of Jun. 25, 2026, which is 257% above its 10-year median of 5.28. GuruFocus rates RCAT with a GF Score™ of 80/100 and a GF Value™ of $7.91 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 337 Aerospace & Defense companies, Red Cat Holdings ranks better than 93.18% 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.
Good Sign:
Altman Z-score of 18.83 is strong.
Red Cat Holdings has a Altman Z-Score of 18.83, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Red Cat Holdings's Altman Z-Score or its related term are showing as below:
RCAT'
s Altman Z-Score Range Over the Past 10 Years
Min: -297.91 Med: 5.28 Max: 48.11
Current: 18.83
During the past 13 years, Red Cat Holdings's highest Altman Z-Score was 48.11. The lowest was -297.91. And the median was 5.28.
Red Cat Holdings (NAS:RCAT) 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.
Altman Z-Score does not apply to financial companies.
Red Cat Holdings Altman Z-Score Related Terms
Red Cat Holdings Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Red Cat Holdings'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.
For the Aerospace & Defense subindustry, Red Cat Holdings'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.
Red Cat Holdings Altman Z-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Red Cat Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Red Cat Holdings'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.
Red Cat Holdings'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
*
0.6761
+
1.4
*
-0.7924
+
3.3
*
-0.2663
+
0.6
*
33.0163
+
1.0
*
0.1936
=
18.83
* 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.
Red Cat Holdings (RCAT) has a Altman Z-Score of 18.83 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Red Cat Holdings and its competitors. This is 257% above median its historical median of 5.28. According to the industry distribution chart, Red Cat Holdings ranks #23 out of 337 companies in the Aerospace & Defense industry, placing it in the top 6.8%.
Is Red Cat Holdings' Altman Z-Score too high?
Red Cat Holdings' current Altman Z-Score of 18.83 is 257% above median its 10-year median of 5.28. The Aerospace & Defense industry median Altman Z-Score is 3.60. Red Cat Holdings' value of 18.83 is 423.1% above this industry median. Based on the distribution chart, Red Cat Holdings ranks #23 out of 337 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Red Cat Holdings has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Cat Holdings' Altman Z-Score compare to DCO and AVEX?
According to the Aerospace & Defense industry distribution chart, Red Cat Holdings ranks #23 out of 337 companies for Altman Z-Score. This places Red Cat Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.60. Red Cat Holdings' value of 18.83 is 423.1% above this benchmark. While the company's 10-year median is 5.28 vs. the industry median of 3.60, Red Cat Holdings has consistently been above 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 an Aerospace & Defense company?
The median Altman Z-Score among Aerospace & Defense companies is 3.60, based on 337 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. Red Cat Holdings's current Altman Z-Score of 18.83 is 423.1% above 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 Red Cat Holdings and its competitors. For the Aerospace & Defense industry, the median Altman Z-Score is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Cat Holdings's current Altman Z-Score is 18.83, which is 257% above median its own 10-year median of 5.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Cat Holdings stock overvalued right now?
Based on GuruFocus' analysis, Red Cat Holdings (RCAT) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.91, compared to a current price of $9.36 — trading 18.3% above its estimated fair value. The current Altman Z-Score is 18.83, which is 257% above median its 10-year median of 5.28 and 423.1% above the Aerospace & Defense industry median of 3.60. Red Cat Holdings' overall GF Score™ is 80/100 with 4 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 Red Cat Holdings (RCAT), the current Altman Z-Score is 18.83 as of Jun. 25, 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 Red Cat Holdings (RCAT) Overvalued in 2026?
Based on GuruFocus' analysis, Red Cat Holdings stock appears to be overvalued.
The current stock price of $9.36 is trading 18.3% above its estimated GF Value™ of $7.91.
GuruFocus considers Red Cat Holdings to be Modestly Overvalued.
Key valuation signals for RCAT:
Altman Z-Score: 18.83 (257% above median its 10-year median of 5.28)
GF Value™: $7.91 vs. price of $9.36 (18.3% above fair value)
Industry Position: 423.1% above the Aerospace & Defense median (#23 of 337)
No single metric tells the full story. See the RCAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Cat Holdings Inc is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Its suite of solutions includes the Arachnid family of ISR and precision strike drones, which includes the Black Widow, a small unmanned ISR system; and WEB (Warfighter Electronic Bridge) GCS, designed to command and control an entire drone family of systems for military operations. Its other offerings include Edge 130 Blue drone systems, Trichon, a fixed-wing VTOL for extended endurance and range, and FANG FPV drones optimized for military operations with precision strike capabilities. The firm's Division includes Teal, FlightWave, and Blue Ops.
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