Sern Kou Resources Bhd (XKLS:7180) Altman Z-Score: 5.11 (As of Jul. 01, 2026) — Near Median


XKLS:7180 Sern Kou Resources Bhd XKLS:7180
51 GF Score
Price RM0.85
GF Value RM0.85
Valuation Fairly Valued
! 4 Warning Signs
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What is Sern Kou Resources Bhd Altman Z-Score?

Sern Kou Resources Bhd XKLS:7180 +3.05% 51 Altman Z-Score is 5.11 as of Jul. 01, 2026, which is 4% above its 10-year median of 4.93. GuruFocus rates XKLS:7180 with a GF Score™ of 51/100 and a GF Value™ of RM0.85 (Fairly Valued). The stock has 4 warning signs investors should review. Among 282 Forest Products companies, Sern Kou Resources Bhd ranks better than 89.01% 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 5.21 is strong.

Sern Kou Resources Bhd has a Altman Z-Score of 5.11, 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 Sern Kou Resources Bhd's Altman Z-Score or its related term are showing as below:

XKLS:7180' s Altman Z-Score Range Over the Past 10 Years
Min: 2.48   Med: 4.93   Max: 6.27
Current: 5.21

During the past 13 years, Sern Kou Resources Bhd's highest Altman Z-Score was 6.27. The lowest was 2.48. And the median was 4.93.


Sern Kou Resources Bhd  (XKLS:7180) 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.


Sern Kou Resources Bhd Altman Z-Score Related Terms


Sern Kou Resources Bhd Altman Z-Score Historical Data

* Premium members only.

The historical data trend for Sern Kou Resources 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.

Sern Kou Resources Bhd Altman Z-Score Chart

Sern Kou Resources Bhd Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.49 5.03 5.48 5.81 5.27

Sern Kou Resources Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.30 5.27 5.01 5.15 5.23

XKLS:7180 vs SSD, UFPI, BCC: Altman Z-Score Comparison

For the Lumber & Wood Production subindustry, Sern Kou Resources 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.


Sern Kou Resources Bhd Altman Z-Score vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sern Kou Resources Bhd's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Sern Kou Resources Bhd's Altman Z-Score falls into.


XKLS:7180
51GF Score
Sern Kou Resources Bhd XKLS:7180
Altman Z-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Sern Kou Resources Bhd 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.

Sern Kou Resources 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*0.2954+1.4*0.1476+3.3*-0.014+0.6*5.4822+1.0*1.3077
=5.11

* 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 Mar. 2026:
Total Assets was RM368.1 Mil.
Total Current Assets was RM243.7 Mil.
Total Current Liabilities was RM135.0 Mil.
Retained Earnings was RM54.3 Mil.
Pre-Tax Income was -4.605 + -1.962 + 0.794 + -6.236 = RM-12.0 Mil.
Interest Expense was -1.655 + -1.723 + -1.747 + -1.745 = RM-6.9 Mil.
Revenue was 95.883 + 115.249 + 121.633 + 148.558 = RM481.3 Mil.
Market Cap (Today) was RM884.0 Mil.
Total Liabilities was RM161.3 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
=(243.713 - 134.991)/368.055
=0.2954

X2=Retained Earnings/Total Assets
=54.311/368.055
=0.1476

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-12.009 - -6.87)/368.055
=-0.014

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=884.040/161.257
=5.4822

X5=Revenue/Total Assets
=481.323/368.055
=1.3077

The zones of discrimination were as such:

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

Sern Kou Resources Bhd has a Altman Z-Score of 5.11 indicating it is in Safe Zones.

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

Frequently Asked Questions Learn more about Altman Z-Score →
What does a Altman Z-Score of 5.11 mean?
Sern Kou Resources Bhd (XKLS:7180) has a Altman Z-Score of 5.11 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sern Kou Resources Bhd and its competitors. This is near median its historical median of 4.93. Over the past decade, Sern Kou Resources Bhd's Altman Z-Score has ranged from 2.48 to 6.27. According to the industry distribution chart, Sern Kou Resources Bhd ranks #31 out of 282 companies in the Forest Products industry, placing it in the top 11%.
Is Sern Kou Resources Bhd's Altman Z-Score too high?
Sern Kou Resources Bhd's current Altman Z-Score of 5.11 is near median its 10-year median of 4.93. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 6.27. The Forest Products industry median Altman Z-Score is 1.83. Sern Kou Resources Bhd's value of 5.11 is 179.2% above this industry median. Based on the distribution chart, Sern Kou Resources Bhd ranks #31 out of 282 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Sern Kou Resources Bhd has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sern Kou Resources Bhd's Altman Z-Score compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Sern Kou Resources Bhd ranks #31 out of 282 companies for Altman Z-Score. This places Sern Kou Resources Bhd in the top 11% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 1.83. Sern Kou Resources Bhd's value of 5.11 is 179.2% above this benchmark. Historically, Sern Kou Resources Bhd's own Altman Z-Score has ranged from 2.48 to 6.27 over the past decade. While the company's 10-year median is 4.93 vs. the industry median of 1.83, Sern Kou Resources Bhd 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 Forest Products company?
The median Altman Z-Score among Forest Products companies is 1.83, based on 282 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. Sern Kou Resources Bhd's current Altman Z-Score of 5.11 is 179.2% 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 Sern Kou Resources Bhd and its competitors. For the Forest Products industry, the median Altman Z-Score is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sern Kou Resources Bhd's current Altman Z-Score is 5.11, which is near median its own 10-year median of 4.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sern Kou Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Sern Kou Resources Bhd (XKLS:7180) is currently considered Fairly Valued. The stock's GF Value™ is RM0.85, compared to a current price of RM0.85 — trading 0.6% below its estimated fair value. The current Altman Z-Score is 5.11, which is near median its 10-year median of 4.93 and 179.2% above the Forest Products industry median of 1.83. Sern Kou Resources Bhd's overall GF Score™ is 51/100 with 4 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 Sern Kou Resources Bhd (XKLS:7180), the current Altman Z-Score is 5.11 as of Jul. 01, 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 Sern Kou Resources Bhd (XKLS:7180) Overvalued in 2026?

Based on GuruFocus' analysis, Sern Kou Resources Bhd stock appears to be undervalued. The current stock price of RM0.85 is trading 0.6% below its estimated GF Value™ of RM0.85. GuruFocus considers Sern Kou Resources Bhd to be Fairly Valued.

Key valuation signals for XKLS:7180:

  • Altman Z-Score: 5.11 (near median its 10-year median of 4.93)
  • GF Value™: RM0.85 vs. price of RM0.85 (0.6% below fair value)
  • GF Score™: 51/100 with 4 warning signs
  • Industry Position: 179.2% above the Forest Products median (#31 of 282)

No single metric tells the full story. See the XKLS:7180 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sern Kou Resources Bhd Business Description

Address Jalan Perindustrian 1, Lot PTD 6019 (Lot 8804), Kawasan Perindustrian Bukit Bakri, Mukim Bakri, Muar, JHR, MYS, 84200
Sern Kou Resources Bhd, along with its subsidiaries, is engaged in the manufacturing, processing, and trading of all kinds of timber, wood, and related products, as well as in the logging, processing, and trading of rubberwood and timber. The company's reportable segments include the manufacturing and trading of wooden furniture, investment holding, and the processing and trading of wood. Substantial revenue for the company is generated from its processing and trading of the wood segment. The company has a presence in various geographical areas, including Malaysia, the United States of America, European countries, and Asia-Pacific countries.
51GF Score

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Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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