We calculate the Altman Z-Score for every stock from SEC EDGAR filings. Companies below 1.8 are in the distress zone — here is who is flashing red right now, with full component breakdowns.
Every stock below has an Altman Z-Score below 1.8, placing it in the statistical bankruptcy risk zone. Lower scores indicate greater distress. The Margin of Safety column shows whether our fair value model considers the stock undervalued (positive) or overvalued (negative) at current prices — a negative margin in the distress zone is a classic value trap signal.
Every year, dozens of publicly traded companies file for Chapter 11 or Chapter 7 bankruptcy. In most cases, the warning signs were visible in the financial statements for at least 1-2 years before the filing. The Altman Z-Score was specifically designed to catch these signals early.
For investors, bankruptcy risk matters because:
The Z-Score is not a black box. It combines five ratios that each measure a different aspect of financial health. On every individual ticker page, we show the exact component values so you can see which factors are driving the overall score.
Can the company pay its bills? A negative ratio means current liabilities exceed current assets — an immediate red flag.
Has the company been profitable over its lifetime? Low or negative retained earnings indicate a history of losses or excessive dividend payouts relative to earnings.
The highest-weighted factor (3.3x). A company that cannot generate operating earnings from its asset base is burning capital regardless of other metrics.
How the market values the company relative to what it owes. A declining stock price directly weakens this ratio, creating a negative feedback loop.
Revenue generated per dollar of assets. Low utilization suggests the company is sitting on unproductive assets or experiencing revenue decline.
For the full formula and our implementation from SEC EDGAR data, see the methodology page. For a conceptual walkthrough, read Altman Z-Score Explained.
Finding a stock in your portfolio in the distress zone does not mean you should panic-sell. Here is a framework for evaluating the situation:
The trend matters more than the number. A Z-Score of 2.0 that fell from 4.0 over three years is more alarming than a Z-Score of 1.5 that improved from 0.8. Always look at the 10-year trajectory on each ticker page before making any decision based on the current score alone.
Equity holders get wiped out last in a bankruptcy. Secured creditors and bondholders get paid first — common shareholders often receive nothing. Even if the company avoids bankruptcy, distress-zone stocks experience severe volatility and drawdowns during crisis periods.
Altman's research found that companies with Z-Scores below 1.8 had an 80-90% probability of filing for bankruptcy within 1-2 years. The score aggregates five balance sheet ratios that measure liquidity, profitability, leverage, solvency, and asset efficiency.
Yes. Some companies restructure debt, sell assets, or pivot their business and return to the safe zone. The key is whether the trend is improving (Z-Score rising quarter over quarter) or deteriorating. A score of 1.5 that's been improving for two years is very different from one that's been falling.
The original formula is most reliable for non-financial manufacturing and services companies. It is less accurate for banks, insurers, and REITs because their balance sheets have fundamentally different structures. We flag this limitation where applicable.
Distressed stocks that also appear cheap — the most dangerous combination for investors.
Overview of all risk analysis tools including Z-Score zones and cross-references.
Check whether a distress-zone stock is actually undervalued or a value trap.