Southern Steel BhdXKLS:5665 31 Altman Z-Score is 1.65 as of Jun. 30, 2026, which is 40% above its 10-year median of 1.18. GuruFocus rates XKLS:5665 with a GF Score™ of 31/100 and a GF Value™ of RM0.26 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 610 Steel companies, Southern Steel Bhd ranks worse than 71.64% 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 1.65 is in distress zone. This implies bankruptcy possibility in the next two years.
Southern Steel Bhd has a Altman Z-Score of 1.65, 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 Southern Steel Bhd's Altman Z-Score or its related term are showing as below:
XKLS:5665'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.32 Med: 1.18 Max: 2.13
Current: 1.65
During the past 13 years, Southern Steel Bhd's highest Altman Z-Score was 2.13. The lowest was 0.32. And the median was 1.18.
Southern Steel Bhd (XKLS:5665) 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.
Southern Steel Bhd Altman Z-Score Related Terms
Southern Steel Bhd Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Southern Steel Bhd'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.
XKLS:5665 vs NUE, STLD, RS: Altman Z-Score Comparison
For the Steel subindustry, Southern Steel Bhd'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.
Southern Steel Bhd Altman Z-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Southern Steel Bhd's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Southern Steel Bhd'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.
Southern Steel Bhd'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
*
0.1199
+
1.4
*
-0.3783
+
3.3
*
-0.0405
+
0.6
*
1.1256
+
1.0
*
1.4915
=
1.65
* 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.
Southern Steel Bhd (XKLS:5665) has a Altman Z-Score of 1.65 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Southern Steel Bhd and its competitors. This is 40% above median its historical median of 1.18. Over the past decade, Southern Steel Bhd's Altman Z-Score has ranged from 0.32 to 2.13. According to the industry distribution chart, Southern Steel Bhd ranks #437 out of 610 companies in the Steel industry, placing it in the top 71.6%.
Is Southern Steel Bhd's Altman Z-Score too high?
Southern Steel Bhd's current Altman Z-Score of 1.65 is 40% above median its 10-year median of 1.18. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 2.13. The Steel industry median Altman Z-Score is 2.45. Southern Steel Bhd's value of 1.65 is 32.5% below this industry median. Based on the distribution chart, Southern Steel Bhd ranks #437 out of 610 companies in the Steel industry, which is below the industry midpoint. Overall, Southern Steel Bhd has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southern Steel Bhd's Altman Z-Score compare to NUE and STLD?
According to the Steel industry distribution chart, Southern Steel Bhd ranks #437 out of 610 companies for Altman Z-Score. This places Southern Steel Bhd in the lower half of its industry. The industry median Altman Z-Score is 2.45. Southern Steel Bhd's value of 1.65 is 32.5% below this benchmark. Historically, Southern Steel Bhd's own Altman Z-Score has ranged from 0.32 to 2.13 over the past decade. While the company's 10-year median is 1.18 vs. the industry median of 2.45, Southern Steel Bhd 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 Steel company?
The median Altman Z-Score among Steel companies is 2.45, based on 610 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. Southern Steel Bhd's current Altman Z-Score of 1.65 is 32.5% 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 Southern Steel Bhd and its competitors. For the Steel industry, the median Altman Z-Score is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Steel Bhd's current Altman Z-Score is 1.65, which is 40% above median its own 10-year median of 1.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Steel Bhd stock overvalued right now?
Based on GuruFocus' analysis, Southern Steel Bhd (XKLS:5665) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.26, compared to a current price of RM0.39 — trading 50% above its estimated fair value. The current Altman Z-Score is 1.65, which is 40% above median its 10-year median of 1.18 and 32.5% below the Steel industry median of 2.45. Southern Steel Bhd's overall GF Score™ is 31/100 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 Southern Steel Bhd (XKLS:5665), the current Altman Z-Score is 1.65 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 Southern Steel Bhd (XKLS:5665) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Steel Bhd stock appears to be overvalued.
The current stock price of RM0.39 is trading 50% above its estimated GF Value™ of RM0.26.
GuruFocus considers Southern Steel Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5665:
Altman Z-Score: 1.65 (40% above median its 10-year median of 1.18)
GF Value™: RM0.26 vs. price of RM0.39 (50% above fair value)
Industry Position: 32.5% below the Steel median (#437 of 610)
No single metric tells the full story. See the XKLS:5665 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Steel Bhd is an investment holding company involved in the manufacturing, sale and trading of steel bars and related products, while the principal activities of its subsidiaries include the manufacturing, sale and trading in billets, steel bars, wire rods, pre-stressed concrete strands, bars and wires, steel pipes, steel wires, and other related products, as well as rental of properties and investment holding. The company comprises the following reportable segments: Steel products, Investment holding and others and Hot rolled coil operation. The company derived the majority of revenue from the sale of its products: bars, wire rod, wire mesh, cut and bend and pre-stressed concrete wire.
31GF Score
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