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Softfront HoldingsTSE:2321 +5.00%47 Altman Z-Score is 12.51 as of Aug. 02, 2026, which is 61% above its 10-year median of 7.76. GuruFocus rates TSE:2321 with a GF Score™ of 47/100 and a GF Value™ of 円68.32 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,769 Software companies, Softfront Holdings ranks better than 90.57% 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.
Good Sign:
Altman Z-score of 11.96 is strong.
Softfront Holdings has a Altman Z-Score of 12.51, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Softfront Holdings's Altman Z-Score or its related term are showing as below:
TSE:2321'
s Altman Z-Score Range Over the Past 10 Years
Min: -30.97 Med: 7.76 Max: 21.53
Current: 11.96
During the past 13 years, Softfront Holdings's highest Altman Z-Score was 21.53. The lowest was -30.97. And the median was 7.76.
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.
Softfront Holdings Altman Z-Score Related Terms
Softfront Holdings Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Softfront Holdings'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.
TSE:2321 vs QH, SHOP, UBER: Altman Z-Score Comparison
For the Software - Application subindustry, Softfront Holdings'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.
Softfront Holdings Altman Z-Score vs Software Industry
For the Software industry and Technology sector, Softfront Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Softfront Holdings'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.
Softfront Holdings'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
*
0.8536
+
1.4
*
-0.2104
+
3.3
*
-0.0408
+
0.6
*
19.1342
+
1.0
*
0.4337
=
12.51
* 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.
Softfront Holdings (TSE:2321) has a Altman Z-Score of 12.51 as of Aug. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Softfront Holdings and its competitors. This is 61% above median its historical median of 7.76. According to the industry distribution chart, Softfront Holdings ranks #261 out of 2769 companies in the Software industry, placing it in the top 9.4%.
Is Softfront Holdings' Altman Z-Score too high?
Softfront Holdings' current Altman Z-Score of 12.51 is 61% above median its 10-year median of 7.76. The Software industry median Altman Z-Score is 3.10. Softfront Holdings' value of 12.51 is 303.5% above this industry median. Based on the distribution chart, Softfront Holdings ranks #261 out of 2769 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Softfront Holdings has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Softfront Holdings' Altman Z-Score compare to QH and SHOP?
According to the Software industry distribution chart, Softfront Holdings ranks #261 out of 2769 companies for Altman Z-Score. This places Softfront Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.10. Softfront Holdings' value of 12.51 is 303.5% above this benchmark. While the company's 10-year median is 7.76 vs. the industry median of 3.10, Softfront Holdings has consistently been above 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 2,769 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. Softfront Holdings's current Altman Z-Score of 12.51 is 303.5% above 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 Softfront Holdings 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. Softfront Holdings's current Altman Z-Score is 12.51, which is 61% above median its own 10-year median of 7.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softfront Holdings stock overvalued right now?
Based on GuruFocus' analysis, Softfront Holdings (TSE:2321) is currently considered Significantly Overvalued. The stock's GF Value™ is 円68.32, compared to a current price of 円126.00 — trading 84.4% above its estimated fair value. The current Altman Z-Score is 12.51, which is 61% above median its 10-year median of 7.76 and 303.5% above the Software industry median of 3.10. Softfront Holdings' overall GF Score™ is 47/100 with 4 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 Softfront Holdings (TSE:2321), the current Altman Z-Score is 12.51 as of Aug. 02, 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 Softfront Holdings (TSE:2321) Overvalued in 2026?
Based on GuruFocus' analysis, Softfront Holdings stock appears to be overvalued.
The current stock price of 円126.00 is trading 84.4% above its estimated GF Value™ of 円68.32.
GuruFocus considers Softfront Holdings to be Significantly Overvalued.
Key valuation signals for TSE:2321:
Altman Z-Score: 12.51 (61% above median its 10-year median of 7.76)
GF Value™: 円68.32 vs. price of 円126.00 (84.4% above fair value)
Industry Position: 303.5% above the Software median (#261 of 2769)
No single metric tells the full story. See the TSE:2321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softfront Holdings is engaged in contract development consultation in Japan. It also provides technical assistance for the software development environment that provides the core technology and SIP / VoIP. Its core activity includes communications technology. The group operates in a single segment, the communications platform-related business.
47GF Score
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