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Hillstone Networks CoSHSE:688030 -1.17%60 Altman Z-Score is 1.31 as of Jul. 23, 2026, which is 69% below its 10-year median of 4.27. GuruFocus rates SHSE:688030 with a GF Score™ of 60/100 and a GF Value™ of ¥21.97 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,766 Software companies, Hillstone Networks Co ranks worse than 73.43% 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 1.3 is in distress zone. This implies bankruptcy possibility in the next two years.
Hillstone Networks Co has a Altman Z-Score of 1.31, 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 Hillstone Networks Co's Altman Z-Score or its related term are showing as below:
SHSE:688030'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.3 Med: 4.27 Max: 27.88
Current: 1.3
During the past 10 years, Hillstone Networks Co's highest Altman Z-Score was 27.88. The lowest was 1.30. And the median was 4.27.
Hillstone Networks Co (SHSE:688030) 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.
Hillstone Networks Co Altman Z-Score Related Terms
Hillstone Networks Co Altman Z-Score Historical Data
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The historical data trend for Hillstone Networks Co'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.
SHSE:688030 vs MSFT, ORCL, PLTR: Altman Z-Score Comparison
For the Software - Infrastructure subindustry, Hillstone Networks 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.
Hillstone Networks Co Altman Z-Score vs Software Industry
For the Software industry and Technology sector, Hillstone Networks Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Hillstone Networks Co'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.
* 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.
Hillstone Networks Co (SHSE:688030) has a Altman Z-Score of 1.31 as of Jul. 23, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Hillstone Networks Co and its competitors. This is 69% below median its historical median of 4.27. Over the past decade, Hillstone Networks Co's Altman Z-Score has ranged from 1.30 to 27.88. According to the industry distribution chart, Hillstone Networks Co ranks #2031 out of 2766 companies in the Software industry, placing it in the top 73.4%.
Is Hillstone Networks Co's Altman Z-Score too high?
Hillstone Networks Co's current Altman Z-Score of 1.31 is 69% below median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 27.88. The Software industry median Altman Z-Score is 3.10. Hillstone Networks Co's value of 1.31 is 57.7% below this industry median. Based on the distribution chart, Hillstone Networks Co ranks #2031 out of 2766 companies in the Software industry, which is below the industry midpoint. Overall, Hillstone Networks Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hillstone Networks Co's Altman Z-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Hillstone Networks Co ranks #2031 out of 2766 companies for Altman Z-Score. This places Hillstone Networks Co in the lower half of its industry. The industry median Altman Z-Score is 3.10. Hillstone Networks Co's value of 1.31 is 57.7% below this benchmark. Historically, Hillstone Networks Co's own Altman Z-Score has ranged from 1.30 to 27.88 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 3.10, Hillstone Networks 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 a Software company?
The median Altman Z-Score among Software companies is 3.10, based on 2,766 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. Hillstone Networks Co's current Altman Z-Score of 1.31 is 57.7% 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 Hillstone Networks Co and its competitors. For the Software industry, the median Altman Z-Score is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hillstone Networks Co's current Altman Z-Score is 1.31, which is 69% below median its own 10-year median of 4.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hillstone Networks Co stock overvalued right now?
Based on GuruFocus' analysis, Hillstone Networks Co (SHSE:688030) is currently considered Possible Value Trap. The stock's GF Value™ is ¥21.97, compared to a current price of ¥14.36 — trading 34.6% below its estimated fair value. The current Altman Z-Score is 1.31, which is 69% below median its 10-year median of 4.27 and 57.7% below the Software industry median of 3.10. Hillstone Networks Co's overall GF Score™ is 60/100 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 Hillstone Networks Co (SHSE:688030), the current Altman Z-Score is 1.31 as of Jul. 23, 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 Hillstone Networks Co (SHSE:688030) Overvalued in 2026?
Based on GuruFocus' analysis, Hillstone Networks Co stock appears to be undervalued.
The current stock price of ¥14.36 is trading 34.6% below its estimated GF Value™ of ¥21.97.
GuruFocus considers Hillstone Networks Co to be Possible Value Trap.
Key valuation signals for SHSE:688030:
Altman Z-Score: 1.31 (69% below median its 10-year median of 4.27)
GF Value™: ¥21.97 vs. price of ¥14.36 (34.6% below fair value)
Industry Position: 57.7% below the Software median (#2031 of 2766)
No single metric tells the full story. See the SHSE:688030 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hillstone Networks Co Ltd is a provider of enterprise network security and risk management solutions. Its customers include financial and educational institutions, government and service providers. The company offers visibility, intelligence and protection to ensure enterprises can comprehensively see, thoroughly understand and rapidly act against cyber-threats.
60GF Score
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