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Japan CommunicationsTSE:9424 +0.84%59 Altman Z-Score is 3.87 as of Sep. 07, 2026, which is 56% below its 10-year median of 8.87. GuruFocus rates TSE:9424 with a GF Score™ of 59/100 and a GF Value™ of 円240.08 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 368 Telecommunication Services companies, Japan Communications ranks better than 82.07% 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 3.85 is strong.
Japan Communications has a Altman Z-Score of 3.87, 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 Japan Communications's Altman Z-Score or its related term are showing as below:
TSE:9424'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.85 Med: 8.87 Max: 19.67
Current: 3.85
During the past 13 years, Japan Communications's highest Altman Z-Score was 19.67. The lowest was 3.85. And the median was 8.87.
Japan Communications (TSE:9424) 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.
Japan Communications Altman Z-Score Related Terms
Japan Communications Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Japan Communications'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:9424 vs VZ, TMUS, T: Altman Z-Score Comparison
For the Telecom Services subindustry, Japan Communications'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.
Japan Communications Altman Z-Score vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Japan Communications's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Japan Communications'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.
Japan Communications'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
*
0.5011
+
1.4
*
0.2925
+
3.3
*
0.0745
+
0.6
*
2.7368
+
1.0
*
0.9699
=
3.87
* 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.
Japan Communications (TSE:9424) has a Altman Z-Score of 3.87 as of Sep. 07, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Japan Communications and its competitors. This is 56% below median its historical median of 8.87. Over the past decade, Japan Communications' Altman Z-Score has ranged from 3.85 to 19.67. According to the industry distribution chart, Japan Communications ranks #66 out of 368 companies in the Telecommunication Services industry, placing it in the top 17.9%.
Is Japan Communications' Altman Z-Score too high?
Japan Communications' current Altman Z-Score of 3.87 is 56% below median its 10-year median of 8.87. Over the past 10 years, this metric has ranged from a low of 3.85 to a high of 19.67. The Telecommunication Services industry median Altman Z-Score is 1.67. Japan Communications' value of 3.87 is 131.7% above this industry median. Based on the distribution chart, Japan Communications ranks #66 out of 368 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Communications has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Communications' Altman Z-Score compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Japan Communications ranks #66 out of 368 companies for Altman Z-Score. This places Japan Communications in the top 18% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 1.67. Japan Communications' value of 3.87 is 131.7% above this benchmark. Historically, Japan Communications' own Altman Z-Score has ranged from 3.85 to 19.67 over the past decade. While the company's 10-year median is 8.87 vs. the industry median of 1.67, Japan Communications 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 Telecommunication Services company?
The median Altman Z-Score among Telecommunication Services companies is 1.67, based on 368 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. Japan Communications's current Altman Z-Score of 3.87 is 131.7% 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 Japan Communications and its competitors. For the Telecommunication Services industry, the median Altman Z-Score is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Communications's current Altman Z-Score is 3.87, which is 56% below median its own 10-year median of 8.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Communications stock overvalued right now?
Based on GuruFocus' analysis, Japan Communications (TSE:9424) is currently considered Possible Value Trap. The stock's GF Value™ is 円240.08, compared to a current price of 円120.00 — trading 50% below its estimated fair value. The current Altman Z-Score is 3.87, which is 56% below median its 10-year median of 8.87 and 131.7% above the Telecommunication Services industry median of 1.67. Japan Communications' overall GF Score™ is 59/100 with 2 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 Japan Communications (TSE:9424), the current Altman Z-Score is 3.87 as of Sep. 07, 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 Japan Communications (TSE:9424) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Communications stock appears to be undervalued.
The current stock price of 円120.00 is trading 50% below its estimated GF Value™ of 円240.08.
GuruFocus considers Japan Communications to be Possible Value Trap.
Key valuation signals for TSE:9424:
Altman Z-Score: 3.87 (56% below median its 10-year median of 8.87)
GF Value™: 円240.08 vs. price of 円120.00 (50% below fair value)
Industry Position: 131.7% above the Telecommunication Services median (#66 of 368)
No single metric tells the full story. See the TSE:9424 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Communications Inc is a mobile virtual network operator. It creates the next generation internet to assist industrial structure through mobile technology. The company provides mobile platforms to handset manufacturers, IP-PBX makers, system integrators, and others.
59GF Score
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