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 2.12 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.
Tainet Communication System has a Altman Z-Score of 2.11, indicating it is in Grey Zones. This implies that Tainet Communication System 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 Tainet Communication System's Altman Z-Score or its related term are showing as below:
ROCO:4905'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.02 Med: 11.3 Max: 26.38
Current: 2.12
During the past 13 years, Tainet Communication System's highest Altman Z-Score was 26.38. The lowest was 2.02. And the median was 11.30.
Tainet Communication System (ROCO:4905) 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.
ROCO:4905 vs CSCO, CIEN, MSI: Altman Z-Score Comparison
For the Communication Equipment subindustry, Tainet Communication System'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.
Tainet Communication System Altman Z-Score vs Hardware Industry
For the Hardware industry and Technology sector, Tainet Communication System's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Tainet Communication System's Altman Z-Score falls into.
Tainet Communication System 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.
Tainet Communication System (ROCO:4905) has a Altman Z-Score of 2.11 as of Jul. 09, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Tainet Communication System and its competitors. This is 81% below median its historical median of 11.30. Over the past decade, Tainet Communication System's Altman Z-Score has ranged from 2.02 to 26.38. According to the industry distribution chart, Tainet Communication System ranks #1828 out of 2457 companies in the Hardware industry, placing it in the top 74.4%.
Is Tainet Communication System's Altman Z-Score too high?
Tainet Communication System's current Altman Z-Score of 2.11 is 81% below median its 10-year median of 11.30. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 26.38. The Hardware industry median Altman Z-Score is 3.64. Tainet Communication System's value of 2.11 is 42% below this industry median. Based on the distribution chart, Tainet Communication System ranks #1828 out of 2457 companies in the Hardware industry, which is below the industry midpoint. Overall, Tainet Communication System has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tainet Communication System's Altman Z-Score compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Tainet Communication System ranks #1828 out of 2457 companies for Altman Z-Score. This places Tainet Communication System in the lower half of its industry. The industry median Altman Z-Score is 3.64. Tainet Communication System's value of 2.11 is 42% below this benchmark. Historically, Tainet Communication System's own Altman Z-Score has ranged from 2.02 to 26.38 over the past decade. While the company's 10-year median is 11.30 vs. the industry median of 3.64, Tainet Communication System has consistently been below 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 Hardware company?
The median Altman Z-Score among Hardware companies is 3.64, based on 2,457 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. Tainet Communication System's current Altman Z-Score of 2.11 is 42% 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 Tainet Communication System and its competitors. For the Hardware industry, the median Altman Z-Score is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tainet Communication System's current Altman Z-Score is 2.11, which is 81% below median its own 10-year median of 11.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tainet Communication System stock overvalued right now?
Based on GuruFocus' analysis, Tainet Communication System (ROCO:4905) is currently considered Possible Value Trap. The stock's GF Value™ is NT$278.31, compared to a current price of NT$67.20 — trading 75.9% below its estimated fair value. The current Altman Z-Score is 2.11, which is 81% below median its 10-year median of 11.30 and 42% below the Hardware industry median of 3.64. Tainet Communication System's overall GF Score™ is 55/100 with 7 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 Tainet Communication System (ROCO:4905), the current Altman Z-Score is 2.11 as of Jul. 09, 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 Tainet Communication System (ROCO:4905) Overvalued in 2026?
Based on GuruFocus' analysis, Tainet Communication System stock appears to be undervalued.
The current stock price of NT$67.20 is trading 75.9% below its estimated GF Value™ of NT$278.31.
GuruFocus considers Tainet Communication System to be Possible Value Trap.
Key valuation signals for ROCO:4905:
Altman Z-Score: 2.11 (81% below median its 10-year median of 11.30)
GF Value™: NT$278.31 vs. price of NT$67.20 (75.9% below fair value)
Industry Position: 42% below the Hardware median (#1828 of 2457)
No single metric tells the full story. See the ROCO:4905 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tainet Communication System Corp is a manufacturer of digital transmission and switching equipment, data terminal equipment, line interface equipment (including telemetry devices), communication and traffic. Manufacturing, processing, trading and installation engineering business of replacement equipment, programmable power supplies, etc.
55GF Score
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