For any investors or fans of finance, what do you make of AT&T's Altman Z-Score?
http://www.gurufocus.com/term/zscore/T/Altman-Z-Score/ATT-Inc
Dallas, do we have a problem?
14 replies (most recent on top)
I look at the company valuation, despite a dividend yield about a half a percentage lower, I think the lower valuation and the stronger potential for dividend growth make Verizon the better buy. AT&T may look like Yahoo in the future, Buy baby Buy, high debt comes with high risks
Meant 2012
Zscore plus can be used and intended for non manufacturing and manufacturing industries since 2022
If you read up on the Z-score, you'll see that it is intended for use on manufacturing companies, it is not reliable for service or financial industries. So pretty much not a realistic measure for any of the companies that you are looking at here.
"Is it time to sell AT&T in general?"
Hell, yes.
Keep in mind the AT&T 401k match percentage buys into the AT&T shares fund - AT&T stock. T is at a high right now - dump it and put that money in one of the index funds offered before it dips back down to the mid 30s.
Is it time to sell AT&T in general? As I look at AT&T's prospects going forward, as well as where the valuation stands at this moment, A mountain of new debt and Yahoo of course, I am taking my profits now. thanks big T:))))))))))
Re: @HQhCT58-1mzb
Intention, conviction, timing, execution. After all that one may wrong still.
The problem here is this is one of many indicators. By itself it means little. A smart investor (or any person for that matter) would look at far more than one tool before making any decisions. If you want to act based on this, by all means sell any T stock you have, quit your job and move on without looking back.
Thanks to boy Randy, great job, just keep going.
T's z score is not only the worse of its "software" competitors, it's the only one in distress. But it's important to note that do is T-Mobile and obviously sprint. Verizon though slightly better, still by definition also in distress.
AT&T states that their main competitors are Amazon, Google, Netflix. AT&T atman z-score is the worse of all three. How can AT&T aduquetly compete when their main financial indicators are so low. First AT&T needs to get their own house in order.
What I don't understand is why he's been allowed to stay so long. He takes some big risks with large exposure and his poker hand is terrible. He should have been shown the door at the failed T-Mobile bid.
Randy better work his fast talking magic
Google-up "Altman Z-Score ATT" and you'll get back ...
"AT&T Inc has a Z-score of 1.23, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years."