Nichia Steel WorksTSE:5658 -0.29%69 Altman Z-Score is 2.01 as of Jun. 30, 2026, which is 5% above its 10-year median of 1.92. GuruFocus rates TSE:5658 with a GF Score™ of 69/100 and a GF Value™ of 円326.18 (Fairly Valued). The stock has 5 warning signs investors should review. Among 3,005 Industrial Products companies, Nichia Steel Works ranks worse than 74.71% 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 2.01 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.
Nichia Steel Works has a Altman Z-Score of 2.01, indicating it is in Grey Zones. This implies that Nichia Steel Works 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 Nichia Steel Works's Altman Z-Score or its related term are showing as below:
TSE:5658'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.68 Med: 1.92 Max: 2.04
Current: 2.01
During the past 13 years, Nichia Steel Works's highest Altman Z-Score was 2.04. The lowest was 1.68. And the median was 1.92.
Nichia Steel Works (TSE:5658) 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.
Nichia Steel Works Altman Z-Score Related Terms
Nichia Steel Works Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Nichia Steel Works'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:5658 vs SNA, RBC, LECO: Altman Z-Score Comparison
For the Tools & Accessories subindustry, Nichia Steel Works'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.
Nichia Steel Works Altman Z-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichia Steel Works's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Nichia Steel Works'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.
Nichia Steel Works'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
*
0.3238
+
1.4
*
0.3648
+
3.3
*
0.0182
+
0.6
*
0.9755
+
1.0
*
0.4623
=
2.01
* 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.
Nichia Steel Works (TSE:5658) has a Altman Z-Score of 2.01 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Nichia Steel Works and its competitors. This is near median its historical median of 1.92. Over the past decade, Nichia Steel Works' Altman Z-Score has ranged from 1.68 to 2.04. According to the industry distribution chart, Nichia Steel Works ranks #2245 out of 3005 companies in the Industrial Products industry, placing it in the top 74.7%.
Is Nichia Steel Works' Altman Z-Score too high?
Nichia Steel Works' current Altman Z-Score of 2.01 is near median its 10-year median of 1.92. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 2.04. The Industrial Products industry median Altman Z-Score is 3.33. Nichia Steel Works' value of 2.01 is 39.6% below this industry median. Based on the distribution chart, Nichia Steel Works ranks #2245 out of 3005 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nichia Steel Works has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichia Steel Works' Altman Z-Score compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Nichia Steel Works ranks #2245 out of 3005 companies for Altman Z-Score. This places Nichia Steel Works in the lower half of its industry. The industry median Altman Z-Score is 3.33. Nichia Steel Works' value of 2.01 is 39.6% below this benchmark. Historically, Nichia Steel Works' own Altman Z-Score has ranged from 1.68 to 2.04 over the past decade. While the company's 10-year median is 1.92 vs. the industry median of 3.33, Nichia Steel Works 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 an Industrial Products company?
The median Altman Z-Score among Industrial Products companies is 3.33, based on 3,005 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. Nichia Steel Works's current Altman Z-Score of 2.01 is 39.6% 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 Nichia Steel Works and its competitors. For the Industrial Products industry, the median Altman Z-Score is 3.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichia Steel Works's current Altman Z-Score is 2.01, which is near median its own 10-year median of 1.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichia Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nichia Steel Works (TSE:5658) is currently considered Fairly Valued. The stock's GF Value™ is 円326.18, compared to a current price of 円345.00 — trading 5.8% above its estimated fair value. The current Altman Z-Score is 2.01, which is near median its 10-year median of 1.92 and 39.6% below the Industrial Products industry median of 3.33. Nichia Steel Works' overall GF Score™ is 69/100 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 Nichia Steel Works (TSE:5658), the current Altman Z-Score is 2.01 as of Jun. 30, 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 Nichia Steel Works (TSE:5658) Overvalued in 2026?
Based on GuruFocus' analysis, Nichia Steel Works stock appears to be overvalued.
The current stock price of 円345.00 is trading 5.8% above its estimated GF Value™ of 円326.18.
GuruFocus considers Nichia Steel Works to be Fairly Valued.
Key valuation signals for TSE:5658:
Altman Z-Score: 2.01 (near median its 10-year median of 1.92)
GF Value™: 円326.18 vs. price of 円345.00 (5.8% above fair value)
Industry Position: 39.6% below the Industrial Products median (#2245 of 3005)
No single metric tells the full story. See the TSE:5658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichia Steel Works Ltd is a manufacturer of steel wire products, fasteners and related products. The products are used in various fields such as construction and civil infrastructure. It offers low carbon steel wire products, hard drawn steel wire products, fasteners & special products and other special finished products.
69GF Score
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