Frontier Group HoldingsULCC -2.61%71 Altman Z-Score is 0.29 as of Jun. 26, 2026, which is 59% below its 10-year median of 0.70. GuruFocus rates ULCC with a GF Score™ of 71/100 and a GF Value™ of $5.54 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,000 Transportation companies, Frontier Group Holdings ranks worse than 92% 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 0.3 is in distress zone. This implies bankruptcy possibility in the next two years.
Frontier Group Holdings has a Altman Z-Score of 0.29, 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 Frontier Group Holdings's Altman Z-Score or its related term are showing as below:
ULCC'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.21 Med: 0.7 Max: 1.1
Current: 0.3
During the past 11 years, Frontier Group Holdings's highest Altman Z-Score was 1.10. The lowest was 0.21. And the median was 0.70.
Frontier Group Holdings (NAS:ULCC) 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.
* 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.
ULCC vs RJET, JBLU, ALGT: Altman Z-Score Comparison
For the Airlines subindustry, Frontier Group Holdings'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.
Frontier Group Holdings Altman Z-Score vs Transportation Industry
For the Transportation industry and Industrials sector, Frontier Group Holdings's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Frontier Group Holdings's Altman Z-Score falls into.
Frontier Group Holdings 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.
* 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.
Frontier Group Holdings (ULCC) has a Altman Z-Score of 0.29 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Frontier Group Holdings and its competitors. This is 59% below median its historical median of 0.70. Over the past decade, Frontier Group Holdings' Altman Z-Score has ranged from 0.21 to 1.10. According to the industry distribution chart, Frontier Group Holdings ranks #920 out of 1000 companies in the Transportation industry, placing it in the top 92%.
Is Frontier Group Holdings' Altman Z-Score too high?
Frontier Group Holdings' current Altman Z-Score of 0.29 is 59% below median its 10-year median of 0.70. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 1.10. The Transportation industry median Altman Z-Score is 2.28. Frontier Group Holdings' value of 0.29 is 87.3% below this industry median. Based on the distribution chart, Frontier Group Holdings ranks #920 out of 1000 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Frontier Group Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontier Group Holdings' Altman Z-Score compare to RJET and JBLU?
According to the Transportation industry distribution chart, Frontier Group Holdings ranks #920 out of 1000 companies for Altman Z-Score. This places Frontier Group Holdings in the lower half of its industry. The industry median Altman Z-Score is 2.28. Frontier Group Holdings' value of 0.29 is 87.3% below this benchmark. Historically, Frontier Group Holdings' own Altman Z-Score has ranged from 0.21 to 1.10 over the past decade. While the company's 10-year median is 0.70 vs. the industry median of 2.28, Frontier Group Holdings 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 a Transportation company?
The median Altman Z-Score among Transportation companies is 2.28, based on 1,000 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. Frontier Group Holdings's current Altman Z-Score of 0.29 is 87.3% 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 Frontier Group Holdings and its competitors. For the Transportation industry, the median Altman Z-Score is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Group Holdings's current Altman Z-Score is 0.29, which is 59% below median its own 10-year median of 0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontier Group Holdings (ULCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.54, compared to a current price of $7.81 — trading 40.9% above its estimated fair value. The current Altman Z-Score is 0.29, which is 59% below median its 10-year median of 0.70 and 87.3% below the Transportation industry median of 2.28. Frontier Group Holdings' overall GF Score™ is 71/100 with 10 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 Frontier Group Holdings (ULCC), the current Altman Z-Score is 0.29 as of Jun. 26, 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 Frontier Group Holdings (ULCC) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Group Holdings stock appears to be overvalued.
The current stock price of $7.81 is trading 40.9% above its estimated GF Value™ of $5.54.
GuruFocus considers Frontier Group Holdings to be Significantly Overvalued.
Key valuation signals for ULCC:
Altman Z-Score: 0.29 (59% below median its 10-year median of 0.70)
GF Value™: $5.54 vs. price of $7.81 (40.9% above fair value)
Industry Position: 87.3% below the Transportation median (#920 of 1000)
No single metric tells the full story. See the ULCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos, and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers. The majority of revenue is from Domestic flight follow by International.
71GF Score
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