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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 2.26 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.
Rich Honour International Designs Co has a Altman Z-Score of 2.26, indicating it is in Grey Zones. This implies that Rich Honour International Designs Co 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.
Rich Honour International Designs Co (TPE:6754) 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.
Rich Honour International Designs Co Altman Z-Score Chart
TPE:6754 vs VRSK, EFX, BAH: Altman Z-Score Comparison
For the Consulting Services subindustry, Rich Honour International Designs 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.
Rich Honour International Designs Co Altman Z-Score vs Business Services Industry
For the Business Services industry and Industrials sector, Rich Honour International Designs Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Rich Honour International Designs Co's Altman Z-Score falls into.
Rich Honour International Designs 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.
Rich Honour International Designs Co (TPE:6754) has a Altman Z-Score of 2.26 as of Sep. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Rich Honour International Designs Co and its competitors. This is 13% below median its historical median of 2.60. Over the past decade, Rich Honour International Designs Co's Altman Z-Score has ranged from 2.26 to 3.23. According to the industry distribution chart, Rich Honour International Designs Co ranks #668 out of 1056 companies in the Business Services industry, placing it in the top 63.3%.
Is Rich Honour International Designs Co's Altman Z-Score too high?
Rich Honour International Designs Co's current Altman Z-Score of 2.26 is 13% below median its 10-year median of 2.60. Over the past 10 years, this metric has ranged from a low of 2.26 to a high of 3.23. The Business Services industry median Altman Z-Score is 2.99. Rich Honour International Designs Co's value of 2.26 is 24.3% below this industry median. Based on the distribution chart, Rich Honour International Designs Co ranks #668 out of 1056 companies in the Business Services industry, which is below the industry midpoint. Overall, Rich Honour International Designs Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rich Honour International Designs Co's Altman Z-Score compare to VRSK and EFX?
According to the Business Services industry distribution chart, Rich Honour International Designs Co ranks #668 out of 1056 companies for Altman Z-Score. This places Rich Honour International Designs Co in the lower half of its industry. The industry median Altman Z-Score is 2.99. Rich Honour International Designs Co's value of 2.26 is 24.3% below this benchmark. Historically, Rich Honour International Designs Co's own Altman Z-Score has ranged from 2.26 to 3.23 over the past decade. While the company's 10-year median is 2.60 vs. the industry median of 2.99, Rich Honour International Designs 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 Business Services company?
The median Altman Z-Score among Business Services companies is 2.99, based on 1,056 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. Rich Honour International Designs Co's current Altman Z-Score of 2.26 is 24.3% 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 Rich Honour International Designs Co and its competitors. For the Business Services industry, the median Altman Z-Score is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rich Honour International Designs Co's current Altman Z-Score is 2.26, which is 13% below median its own 10-year median of 2.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rich Honour International Designs Co stock overvalued right now?
Based on GuruFocus' analysis, Rich Honour International Designs Co (TPE:6754) is currently considered Fairly Valued. The stock's GF Value™ is NT$39.77, compared to a current price of NT$42.10 — trading 5.9% above its estimated fair value. The current Altman Z-Score is 2.26, which is 13% below median its 10-year median of 2.60 and 24.3% below the Business Services industry median of 2.99. Rich Honour International Designs Co's overall GF Score™ is 89/100 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 Rich Honour International Designs Co (TPE:6754), the current Altman Z-Score is 2.26 as of Sep. 01, 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 Rich Honour International Designs Co (TPE:6754) Overvalued in 2026?
Based on GuruFocus' analysis, Rich Honour International Designs Co stock appears to be overvalued.
The current stock price of NT$42.10 is trading 5.9% above its estimated GF Value™ of NT$39.77.
GuruFocus considers Rich Honour International Designs Co to be Fairly Valued.
Key valuation signals for TPE:6754:
Altman Z-Score: 2.26 (13% below median its 10-year median of 2.60)
GF Value™: NT$39.77 vs. price of NT$42.10 (5.9% above fair value)
Industry Position: 24.3% below the Business Services median (#668 of 1056)
No single metric tells the full story. See the TPE:6754 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rich Honour International Designs Co Ltd is a Taiwan based company engaged in providing various business services such as Interior design, interior decoration, renovation, project management, master planning, boutique implementation design, Interior fitting-out, and others. The group operates in two principal geographical areas: Taiwan and China.
89GF Score
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