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NexGen Energy (TSX:NXE) Altman Z-Score : N/A (As of Dec. 15, 2024)


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What is NexGen Energy Altman Z-Score?

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.

NexGen Energy has a Altman Z-Score of N/A, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 NexGen Energy's Altman Z-Score or its related term are showing as below:

During the past 12 years, NexGen Energy's highest Altman Z-Score was 123.94. The lowest was 2.89. And the median was 5.64.


NexGen Energy Altman Z-Score Historical Data

The historical data trend for NexGen Energy'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.

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NexGen Energy Altman Z-Score Chart

NexGen Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
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NexGen Energy Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of NexGen Energy's Altman Z-Score

For the Uranium subindustry, NexGen Energy'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.


NexGen Energy's Altman Z-Score Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, NexGen Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where NexGen Energy's Altman Z-Score falls into.



NexGen Energy Altman Z-Score Calculation

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.

NexGen Energy'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*0.0452+1.4*-0.1872+3.3*0.101+0.6*12.8824+1.0*0
=N/A

* 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.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was C$1,683.65 Mil.
Total Current Assets was C$544.71 Mil.
Total Current Liabilities was C$468.57 Mil.
Retained Earnings was C$-315.18 Mil.
Pre-Tax Income was 9.741 + 9.841 + -34.31 + 160.131 = C$145.40 Mil.
Interest Expense was -11.32 + -6.087 + -3.408 + -3.761 = C$-24.58 Mil.
Revenue was 0 + 0 + 0 + 0 = C$0.00 Mil.
Market Cap (Today) was C$6,039.80 Mil.
Total Liabilities was C$468.84 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(544.713 - 468.574)/1683.654
=0.0452

X2=Retained Earnings/Total Assets
=-315.176/1683.654
=-0.1872

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(145.403 - -24.576)/1683.654
=0.101

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6039.803/468.84
=12.8824

X5=Revenue/Total Assets
=0/1683.654
=0

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

NexGen Energy has a Altman Z-Score of N/A indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


NexGen Energy  (TSX:NXE) 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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


NexGen Energy Altman Z-Score Related Terms

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NexGen Energy Business Description

Address
1021 West Hastings Street, Suite 3150, Vancouver, BC, CAN, V6E 0C3
NexGen Energy Ltd is a mineral exploration company. It is engaged in the acquisition, exploration, evaluation and development of uranium properties in Canada. The company's projects portfolio consists of ROOK I, and the IsoEnergy, at the Athabasca Basin. The Rook I property hosts the world-class Arrow Zone, the Bow discovery. as well as the discovered Harpoon area located northeast of the Arrow deposit.
Executives
Richard J Patricio Director, Director or Senior Officer of 10% Security Holder
Donald Jeffrey Roberts Director
Bradley John Wall Director
Leigh Robert Curyer Director, Senior Officer
Christopher Walter Mcfadden Director
Trevor John Thiele Director
Karri Lynn Howlett Director
Sybil Elsa Veenman Director
Harpreet Kaur Dhaliwal Issuer