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Daido Steel CoTSE:5471 +3.01%75 Altman Z-Score is 2.61 as of Jul. 22, 2026, which is 29% above its 10-year median of 2.02. GuruFocus rates TSE:5471 with a GF Score™ of 75/100 and a GF Value™ of 円1,361.50 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 609 Steel companies, Daido Steel Co ranks better than 53.2% 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 2.59 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.
Daido Steel Co has a Altman Z-Score of 2.61, indicating it is in Grey Zones. This implies that Daido Steel 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.
The historical rank and industry rank for Daido Steel Co's Altman Z-Score or its related term are showing as below:
TSE:5471'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.78 Med: 2.02 Max: 2.59
Current: 2.59
During the past 13 years, Daido Steel Co's highest Altman Z-Score was 2.59. The lowest was 1.78. And the median was 2.02.
Daido Steel Co (TSE:5471) 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.
Daido Steel Co Altman Z-Score Related Terms
Daido Steel Co Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Daido Steel 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.
TSE:5471 vs NUE, STLD, RS: Altman Z-Score Comparison
For the Steel subindustry, Daido Steel 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.
Daido Steel Co Altman Z-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Daido Steel Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Daido Steel 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.
Daido Steel Co'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
*
0.2891
+
1.4
*
0.4212
+
3.3
*
0.0535
+
0.6
*
1.3766
+
1.0
*
0.6751
=
2.61
* 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.
Daido Steel Co (TSE:5471) has a Altman Z-Score of 2.61 as of Jul. 22, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Daido Steel Co and its competitors. This is 29% above median its historical median of 2.02. Over the past decade, Daido Steel Co's Altman Z-Score has ranged from 1.78 to 2.59. According to the industry distribution chart, Daido Steel Co ranks #285 out of 609 companies in the Steel industry, placing it in the top 46.8%.
Is Daido Steel Co's Altman Z-Score too high?
Daido Steel Co's current Altman Z-Score of 2.61 is 29% above median its 10-year median of 2.02. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 2.59. The Steel industry median Altman Z-Score is 2.46. Daido Steel Co's value of 2.61 is 6.1% above this industry median. Based on the distribution chart, Daido Steel Co ranks #285 out of 609 companies in the Steel industry, which is above the industry midpoint. Overall, Daido Steel Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Steel Co's Altman Z-Score compare to NUE and STLD?
According to the Steel industry distribution chart, Daido Steel Co ranks #285 out of 609 companies for Altman Z-Score. This puts Daido Steel Co in the upper half of its industry. The industry median Altman Z-Score is 2.46. Daido Steel Co's value of 2.61 is 6.1% above this benchmark. Historically, Daido Steel Co's own Altman Z-Score has ranged from 1.78 to 2.59 over the past decade. While the company's 10-year median is 2.02 vs. the industry median of 2.46, Daido Steel Co 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 Steel company?
The median Altman Z-Score among Steel companies is 2.46, based on 609 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. Daido Steel Co's current Altman Z-Score of 2.61 is 6.1% 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 Daido Steel Co and its competitors. For the Steel industry, the median Altman Z-Score is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Steel Co's current Altman Z-Score is 2.61, which is 29% above median its own 10-year median of 2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Steel Co (TSE:5471) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,361.50, compared to a current price of 円2,362.00 — trading 73.5% above its estimated fair value. The current Altman Z-Score is 2.61, which is 29% above median its 10-year median of 2.02 and 6.1% above the Steel industry median of 2.46. Daido Steel Co's overall GF Score™ is 75/100 with 3 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 Daido Steel Co (TSE:5471), the current Altman Z-Score is 2.61 as of Jul. 22, 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 Daido Steel Co (TSE:5471) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Steel Co stock appears to be overvalued.
The current stock price of 円2,362.00 is trading 73.5% above its estimated GF Value™ of 円1,361.50.
GuruFocus considers Daido Steel Co to be Significantly Overvalued.
Key valuation signals for TSE:5471:
Altman Z-Score: 2.61 (29% above median its 10-year median of 2.02)
GF Value™: 円1,361.50 vs. price of 円2,362.00 (73.5% above fair value)
Industry Position: 6.1% above the Steel median (#285 of 609)
No single metric tells the full story. See the TSE:5471 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Steel Co Ltd is a Japan-based company that primarily operates through three segments. The special steel segment produces and distributes specialty steel for automotive parts, industrial machinery parts, electrical machinery parts, construction, and tool steel. The high-performance materials and magnetic materials segment produces and sells stainless steel, nickel-based alloys, electrical and electronic parts, magnetic material products, alloy powder, titanium products, and welding wire. The parts for automobile and industrial equipment segment is engaged in forging and casting for parts for automobiles, industrial machines, chemical equipment, and oil drilling rigs. The company generates majority of its revenue from the Japanese domestic market.
75GF Score
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