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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 0.69 is in distress zone. This implies bankruptcy possibility in the next two years.
Shanghai Zhenhua Heavy Industries Co has a Altman Z-Score of 0.69, 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.
Shanghai Zhenhua Heavy Industries Co (SHSE:600320) 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.
Shanghai Zhenhua Heavy Industries Co Altman Z-Score Chart
SHSE:600320 vs GEV, ETN, PH: Altman Z-Score Comparison
For the Specialty Industrial Machinery subindustry, Shanghai Zhenhua Heavy Industries Co'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.
Shanghai Zhenhua Heavy Industries Co Altman Z-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanghai Zhenhua Heavy Industries Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Shanghai Zhenhua Heavy Industries Co's Altman Z-Score falls into.
Shanghai Zhenhua Heavy Industries Co 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.
Shanghai Zhenhua Heavy Industries Co (SHSE:600320) has a Altman Z-Score of 0.69 as of Jul. 15, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Shanghai Zhenhua Heavy Industries Co and its competitors. This is near median its historical median of 0.70. Over the past decade, Shanghai Zhenhua Heavy Industries Co's Altman Z-Score has ranged from 0.36 to 0.78. According to the industry distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2741 out of 3005 companies in the Industrial Products industry, placing it in the top 91.2%.
Is Shanghai Zhenhua Heavy Industries Co's Altman Z-Score too high?
Shanghai Zhenhua Heavy Industries Co's current Altman Z-Score of 0.69 is near median its 10-year median of 0.70. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 0.78. The Industrial Products industry median Altman Z-Score is 3.31. Shanghai Zhenhua Heavy Industries Co's value of 0.69 is 79.2% below this industry median. Based on the distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2741 out of 3005 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Shanghai Zhenhua Heavy Industries Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Zhenhua Heavy Industries Co's Altman Z-Score compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2741 out of 3005 companies for Altman Z-Score. This places Shanghai Zhenhua Heavy Industries Co in the lower half of its industry. The industry median Altman Z-Score is 3.31. Shanghai Zhenhua Heavy Industries Co's value of 0.69 is 79.2% below this benchmark. Historically, Shanghai Zhenhua Heavy Industries Co's own Altman Z-Score has ranged from 0.36 to 0.78 over the past decade. While the company's 10-year median is 0.70 vs. the industry median of 3.31, Shanghai Zhenhua Heavy Industries Co 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 an Industrial Products company?
The median Altman Z-Score among Industrial Products companies is 3.31, based on 3,005 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. Shanghai Zhenhua Heavy Industries Co's current Altman Z-Score of 0.69 is 79.2% 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 Shanghai Zhenhua Heavy Industries Co and its competitors. For the Industrial Products industry, the median Altman Z-Score is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Zhenhua Heavy Industries Co's current Altman Z-Score is 0.69, which is near median its own 10-year median of 0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Zhenhua Heavy Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Zhenhua Heavy Industries Co (SHSE:600320) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.61, compared to a current price of ¥4.14 — trading 10.2% below its estimated fair value. The current Altman Z-Score is 0.69, which is near median its 10-year median of 0.70 and 79.2% below the Industrial Products industry median of 3.31. Shanghai Zhenhua Heavy Industries Co's overall GF Score™ is 78/100 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 Shanghai Zhenhua Heavy Industries Co (SHSE:600320), the current Altman Z-Score is 0.69 as of Jul. 15, 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 Shanghai Zhenhua Heavy Industries Co (SHSE:600320) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Zhenhua Heavy Industries Co stock appears to be undervalued.
The current stock price of ¥4.14 is trading 10.2% below its estimated GF Value™ of ¥4.61.
GuruFocus considers Shanghai Zhenhua Heavy Industries Co to be Modestly Undervalued.
Key valuation signals for SHSE:600320:
Altman Z-Score: 0.69 (near median its 10-year median of 0.70)
GF Value™: ¥4.61 vs. price of ¥4.14 (10.2% below fair value)
Industry Position: 79.2% below the Industrial Products median (#2741 of 3005)
No single metric tells the full story. See the SHSE:600320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Zhenhua Heavy Industries Co Business Description
Shanghai Zhenhua Heavy Industries Co Ltd manufactures heavy equipment and offers product design and aftermarket services. It constructs large port loading systems and equipment, offshore heavy equipment, engineering machinery, ships, and other large structures. In addition, the company offers environment-friendly devices, including wind power, sea water desalination, sewage treatment, and recycling equipment. Research centers and technologies help meet customers' needs, and provide innovative solutions to enhance operational performance. Offices with regional parts are scattered across the globe to supply timely responses and support preventive maintenance. The majority of total revenue comes from Asia, but the company has diversified operations to several continents.
78GF Score
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