User LocalTSE:3984 +0.90%97 Altman Z-Score is 16.50 as of Jul. 13, 2026, which is 55% below its 10-year median of 36.95. GuruFocus rates TSE:3984 with a GF Score™ of 97/100 and a GF Value™ of 円2,110.96 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,768 Software companies, User Local ranks better than 93.5% 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 15.8 is strong.
User Local has a Altman Z-Score of 16.50, 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 User Local's Altman Z-Score or its related term are showing as below:
TSE:3984'
s Altman Z-Score Range Over the Past 10 Years
Min: 15.8 Med: 36.95 Max: 148.43
Current: 15.8
During the past 11 years, User Local's highest Altman Z-Score was 148.43. The lowest was 15.80. And the median was 36.95.
User Local (TSE:3984) 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.
User Local Altman Z-Score Related Terms
User Local Altman Z-Score Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Altman Z-Score Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Altman Z-Score vs Software Industry
For the Software industry and Technology sector, User Local's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local'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
*
0.8149
+
1.4
*
0.6962
+
3.3
*
0.1811
+
0.6
*
22.5766
+
1.0
*
0.4029
=
16.50
* 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.
User Local (TSE:3984) has a Altman Z-Score of 16.50 as of Jul. 13, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on User Local and its competitors. This is 55% below median its historical median of 36.95. Over the past decade, User Local's Altman Z-Score has ranged from 15.80 to 148.43. According to the industry distribution chart, User Local ranks #180 out of 2768 companies in the Software industry, placing it in the top 6.5%.
Is User Local's Altman Z-Score too high?
User Local's current Altman Z-Score of 16.50 is 55% below median its 10-year median of 36.95. Over the past 10 years, this metric has ranged from a low of 15.80 to a high of 148.43. The Software industry median Altman Z-Score is 3.16. User Local's value of 16.50 is 422.2% above this industry median. Based on the distribution chart, User Local ranks #180 out of 2768 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Altman Z-Score compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #180 out of 2768 companies for Altman Z-Score. This places User Local in the top 7% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.16. User Local's value of 16.50 is 422.2% above this benchmark. Historically, User Local's own Altman Z-Score has ranged from 15.80 to 148.43 over the past decade. While the company's 10-year median is 36.95 vs. the industry median of 3.16, User Local 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 3.16, based on 2,768 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. User Local's current Altman Z-Score of 16.50 is 422.2% 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 User Local and its competitors. For the Software industry, the median Altman Z-Score is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. User Local's current Altman Z-Score is 16.50, which is 55% below median its own 10-year median of 36.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,110.96, compared to a current price of 円1,784.00 — trading 15.5% below its estimated fair value. The current Altman Z-Score is 16.50, which is 55% below median its 10-year median of 36.95 and 422.2% above the Software industry median of 3.16. User Local's overall GF Score™ is 97/100 with 1 warning sign 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 User Local (TSE:3984), the current Altman Z-Score is 16.50 as of Jul. 13, 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,784.00 is trading 15.5% below its estimated GF Value™ of 円2,110.96.
GuruFocus considers User Local to be Modestly Undervalued.
Key valuation signals for TSE:3984:
Altman Z-Score: 16.50 (55% below median its 10-year median of 36.95)
GF Value™: 円2,110.96 vs. price of 円1,784.00 (15.5% below fair value)
Industry Position: 422.2% above the Software median (#180 of 2768)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
97GF Score
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