Altman Z‑scores and Piotroski F‑scores for the largest US companies outside finance and real estate: how many fall in each zone, which big names score lowest, and why a low score is a reason to look closer, not a verdict.
180 of 794, or 22.7%, scored below 1.81 in their latest annual figures, as of Oct 20, 2026. The study covers the largest US‑listed companies outside the financial services and real estate sectors, where the Z‑score does not apply. A score in the distress zone is a reason to read the balance sheet, not a forecast: many of the companies below are large, profitable and nowhere near default.
| Zone | Altman Z | Companies | Share |
|---|---|---|---|
| Distress | below 1.81 | 180 | 22.7% |
| Grey | 1.81 to 2.99 | 149 | 18.8% |
| Safe | 2.99 and above | 465 | 58.6% |
A single number that combines five balance‑sheet and income ratios, built by Edward Altman in 1968 to separate manufacturers that later went bankrupt from those that did not (Journal of Finance). The classic version weights:
Below 1.81 is the distress zone, 1.81 to 2.99 the grey zone, and above 2.99 the safe zone. The model was fitted on manufacturers, so it reads asset‑heavy, debt‑funded businesses such as utilities harshly, and it is not meaningful for banks, insurers or REITs.
Among US companies worth $10 billion or more, BridgeBio Pharma (BBIO) (−3.50), VeriSign (VRSN) (−2.12) and Rivian Automotive (RIVN) (−1.48) score lowest. The table shows the Piotroski F‑score next to each Z, and whether the company has an accumulated deficit (negative retained earnings). Z is one signal: read the two together.
| Company | Altman Z | Piotroski F | Retained earnings | Sector |
|---|---|---|---|---|
| BridgeBio Pharma (BBIO) | −3.50 | 3 of 9 | Negative (deficit) | Healthcare |
| VeriSign (VRSN) | −2.12 | 9 of 9 | Negative (deficit) | Technology |
| Rivian Automotive (RIVN) | −1.48 | 3 of 9 | Negative (deficit) | Consumer Cyclical |
| Fidelity National Information Services (FIS) | 0.05 | 5 of 9 | Negative (deficit) | Technology |
| Paramount Skydance (PSKY) | 0.46 | 3 of 9 | Negative (deficit) | Communication Services |
| Kraft Heinz (KHC) | 0.50 | 4 of 9 | Negative (deficit) | Consumer Defensive |
| DuPont de Nemours (DD) | 0.52 | 8 of 9 | Negative (deficit) | Basic Materials |
| AES (AES) | 0.53 | 6 of 9 | Positive | Utilities |
| PG&E (PCG) | 0.54 | 7 of 9 | Positive | Utilities |
| Charter Communications (CHTR) | 0.59 | 6 of 9 | Negative (deficit) | Communication Services |
| Edison International (EIX) | 0.64 | 6 of 9 | Positive | Utilities |
| Dominion Energy (D) | 0.66 | 6 of 9 | Positive | Utilities |
| Pinnacle West Capital (PNW) | 0.70 | 6 of 9 | Positive | Utilities |
| Duke Energy (DUK) | 0.71 | 7 of 9 | Positive | Utilities |
| Exelon (EXC) | 0.74 | 6 of 9 | Positive | Utilities |
| FirstEnergy (FE) | 0.75 | 5 of 9 | Positive | Utilities |
| NiSource (NI) | 0.75 | 6 of 9 | Negative (deficit) | Utilities |
| MGM Resorts International (MGM) | 0.75 | 8 of 9 | Positive | Consumer Cyclical |
| Keurig Dr Pepper (KDP) | 0.77 | 5 of 9 | Positive | Consumer Defensive |
| Eversource Energy (ES) | 0.77 | 6 of 9 | Positive | Utilities |
| Evergy (EVRG) | 0.77 | 5 of 9 | Positive | Utilities |
| Service Corporation International (SCI) | 0.78 | 5 of 9 | Positive | Consumer Cyclical |
| Warner Bros. Discovery (WBD) | 0.81 | 4 of 9 | Negative (deficit) | Communication Services |
| Ford Motor (F) | 0.83 | 4 of 9 | Positive | Consumer Cyclical |
| DraftKings (DKNG) | 0.83 | 5 of 9 | Negative (deficit) | Consumer Cyclical |
| Xcel Energy (XEL) | 0.86 | 5 of 9 | Positive | Utilities |
| CMS Energy (CMS) | 0.86 | 5 of 9 | Positive | Utilities |
| CenterPoint Energy (CNP) | 0.87 | 6 of 9 | Positive | Utilities |
| DTE Energy (DTE) | 0.89 | 5 of 9 | Positive | Utilities |
| American Electric Power (AEP) | 0.90 | 5 of 9 | Positive | Utilities |
16 of the 30 are utilities. 11 carry an accumulated deficit. 5 score 7 or more of 9 on the Piotroski F‑score, a sign that the business itself is in decent shape. What is left after those groups are the names where a low Z deserves the closest look: weak profits, falling stock prices against heavy debt, or both.
Three patterns explain most low scores among large, established companies:
Real distress usually shows up in several places at once: operating losses, cash burn, debt coming due and a falling share price. For how stocks with heavy debt behaved in past selloffs, see a portfolio in a recession and value traps.
Most large US companies score in the middle: 6 was the most common result (174 of 794 companies), 157 scored 8 or 9, and 17 scored 0 or 1. The F‑score, from Joseph Piotroski’s 2000 study (Journal of Accounting Research), gives one point for each of nine tests on the latest annual report against the year before:
Z asks whether the balance sheet could fail; F asks whether the business is improving. A low Z with a high F is a very different case from a low Z with a low F.
| Piotroski F‑score | Companies | Share |
|---|---|---|
| 9 | 26 | 3.3% |
| 8 | 131 | 16.5% |
| 7 | 164 | 20.7% |
| 6 | 174 | 21.9% |
| 5 | 140 | 17.6% |
| 4 | 65 | 8.2% |
| 3 | 45 | 5.7% |
| 2 | 32 | 4.0% |
| 1 | 15 | 1.9% |
| 0 | 2 | 0.3% |
20 US companies worth $10 billion or more scored a perfect 9 in their latest annual figures:
| Company | Altman Z | Market value | Sector |
|---|---|---|---|
| Apple (AAPL) | 13.49 | $5.01 trillion | Technology |
| AbbVie (ABBV) | 2.72 | $484.6 billion | Healthcare |
| Coca-Cola (KO) | 5.66 | $385.8 billion | Consumer Defensive |
| ConocoPhillips (COP) | 3.59 | $167.0 billion | Energy |
| Newmont (NEM) | 4.89 | $134.9 billion | Basic Materials |
| Parker-Hannifin (PH) | 7.13 | $125.5 billion | Industrials |
| CSX (CSX) | 2.77 | $90.8 billion | Industrials |
| Emerson Electric (EMR) | 4.55 | $83.1 billion | Industrials |
| Ross Stores (ROST) | 7.90 | $73.3 billion | Consumer Cyclical |
| Autodesk (ADSK) | 4.06 | $49.7 billion | Technology |
| L3Harris Technologies (LHX) | 2.18 | $48.9 billion | Industrials |
| Rockwell Automation (ROK) | 5.74 | $47.9 billion | Industrials |
| IDEXX Laboratories (IDXX) | 20.01 | $43.8 billion | Healthcare |
| VeriSign (VRSN) | −2.12 | $26.4 billion | Technology |
| Carpenter Technology (CRS) | 9.49 | $22.3 billion | Basic Materials |
| Ralph Lauren (RL) | 6.25 | $21.6 billion | Consumer Cyclical |
| Nordson (NDSN) | 6.29 | $18.1 billion | Industrials |
| BorgWarner (BWA) | 3.10 | $13.0 billion | Consumer Cyclical |
| Darling Ingredients (DAR) | 2.54 | $10.5 billion | Consumer Defensive |
| Insulet (PODD) | 5.58 | $10.1 billion | Healthcare |
Above 2.99 is the “safe” zone, 1.81 to 2.99 the grey zone and below 1.81 the distress zone. Among 794 large non‑financial US companies, 58.6% were safe and 22.7% in distress as of Oct 20, 2026. The thresholds come from Edward Altman’s 1968 study of manufacturers.
Among US companies worth $10 billion or more (banks, insurers and REITs excluded): BridgeBio Pharma (BBIO) at −3.50, VeriSign (VRSN) at −2.12 and Rivian Automotive (RIVN) at −1.48, as of Oct 20, 2026. 11 of the 30 lowest carry an accumulated deficit, which lowers Z whether it comes from losses or from buybacks.
No. It is a warning sign worth checking, not a prediction. Utilities, companies that bought back more stock than they earned, and young companies with past losses often score low while paying their bills comfortably; 5 of the 30 lowest‑scoring large companies score 7 or more of 9 on the Piotroski F‑score.
They borrow heavily to build plants and grids, earn regulated returns on large assets and sell little relative to those assets, so most of the five Z ratios come out low. 16 of the 30 lowest‑scoring US companies worth $10 billion or more are utilities.
A 0–9 checklist of nine accounting tests (profitability, debt and liquidity, efficiency), one point each, from Joseph Piotroski’s 2000 study, which treated 8–9 as high and 0–1 as low. Among 794 large US companies, 157 scored 8 or 9 and 17 scored 0 or 1.
No. Banks, insurers and REITs carry very different balance sheets, so the ratios mean something else; this study leaves out the financial services and real estate sectors.
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