Cheng LoongTPE:1904 +5.02%71 Altman Z-Score is 1.37 as of Jul. 03, 2026, which is 13% below its 10-year median of 1.58. GuruFocus rates TPE:1904 with a GF Score™ of 71/100 and a GF Value™ of NT$25.96 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 282 Forest Products companies, Cheng Loong ranks worse than 63.83% 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 1.36 is in distress zone. This implies bankruptcy possibility in the next two years.
Cheng Loong has a Altman Z-Score of 1.37, 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 Cheng Loong's Altman Z-Score or its related term are showing as below:
TPE:1904'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.27 Med: 1.58 Max: 1.99
Current: 1.36
During the past 13 years, Cheng Loong's highest Altman Z-Score was 1.99. The lowest was 1.27. And the median was 1.58.
Cheng Loong (TPE:1904) 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.
Cheng Loong Altman Z-Score Related Terms
Cheng Loong Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Cheng Loong'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 Paper & Paper Products subindustry, Cheng Loong'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.
Cheng Loong Altman Z-Score vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Cheng Loong's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Cheng Loong'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.
Cheng Loong'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
*
0.0612
+
1.4
*
0.1851
+
3.3
*
0.0273
+
0.6
*
0.5799
+
1.0
*
0.5971
=
1.37
* 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.
Cheng Loong (TPE:1904) has a Altman Z-Score of 1.37 as of Jul. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Cheng Loong and its competitors. This is 13% below median its historical median of 1.58. Over the past decade, Cheng Loong's Altman Z-Score has ranged from 1.27 to 1.99. According to the industry distribution chart, Cheng Loong ranks #180 out of 282 companies in the Forest Products industry, placing it in the top 63.8%.
Is Cheng Loong's Altman Z-Score too high?
Cheng Loong's current Altman Z-Score of 1.37 is 13% below median its 10-year median of 1.58. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 1.99. The Forest Products industry median Altman Z-Score is 1.83. Cheng Loong's value of 1.37 is 25.1% below this industry median. Based on the distribution chart, Cheng Loong ranks #180 out of 282 companies in the Forest Products industry, which is below the industry midpoint. Overall, Cheng Loong has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Loong's Altman Z-Score compare to competitors?
According to the Forest Products industry distribution chart, Cheng Loong ranks #180 out of 282 companies for Altman Z-Score. This places Cheng Loong in the lower half of its industry. The industry median Altman Z-Score is 1.83. Cheng Loong's value of 1.37 is 25.1% below this benchmark. Historically, Cheng Loong's own Altman Z-Score has ranged from 1.27 to 1.99 over the past decade. While the company's 10-year median is 1.58 vs. the industry median of 1.83, Cheng Loong 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 Forest Products company?
The median Altman Z-Score among Forest Products companies is 1.83, based on 282 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. Cheng Loong's current Altman Z-Score of 1.37 is 25.1% 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 Cheng Loong and its competitors. For the Forest Products industry, the median Altman Z-Score is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Loong's current Altman Z-Score is 1.37, which is 13% below median its own 10-year median of 1.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Loong stock overvalued right now?
Based on GuruFocus' analysis, Cheng Loong (TPE:1904) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$25.96, compared to a current price of NT$21.95 — trading 15.4% below its estimated fair value. The current Altman Z-Score is 1.37, which is 13% below median its 10-year median of 1.58 and 25.1% below the Forest Products industry median of 1.83. Cheng Loong's overall GF Score™ is 71/100 with 12 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 Cheng Loong (TPE:1904), the current Altman Z-Score is 1.37 as of Jul. 03, 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 Cheng Loong (TPE:1904) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Loong stock appears to be undervalued.
The current stock price of NT$21.95 is trading 15.4% below its estimated GF Value™ of NT$25.96.
GuruFocus considers Cheng Loong to be Modestly Undervalued.
Key valuation signals for TPE:1904:
Altman Z-Score: 1.37 (13% below median its 10-year median of 1.58)
GF Value™: NT$25.96 vs. price of NT$21.95 (15.4% below fair value)
Industry Position: 25.1% below the Forest Products median (#180 of 282)
No single metric tells the full story. See the TPE:1904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Loong Corp manufactures and sells a variety of paper products. The company is engaged in the manufacturing and sale of paper products, materials for paper products, corrugated cartons, and related products. It is also engaged in building commercial and residential premises for rent and sale in partnership with construction companies. The company generates a majority of its revenue from the manufacturing and sale of industrial paper, corrugated containers, and related products. Its geographical segments are Taiwan, which generates key revenue, China, and Southeast Asia.
71GF Score
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