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Portillos (Portillos) Altman Z-Score : 0.97 (As of May. 11, 2024)


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What is Portillos Altman Z-Score?

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 0.97 is in distress zone. This implies bankruptcy possibility in the next two years.

Portillos has a Altman Z-Score of 0.97, 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 Portillos's Altman Z-Score or its related term are showing as below:

PTLO' s Altman Z-Score Range Over the Past 10 Years
Min: 0.97   Med: 1.29   Max: 1.98
Current: 0.97

During the past 5 years, Portillos's highest Altman Z-Score was 1.98. The lowest was 0.97. And the median was 1.29.


Portillos Altman Z-Score Historical Data

The historical data trend for Portillos'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.

* Premium members only.

Portillos Altman Z-Score Chart

Portillos Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - 1.98 1.12 1.16

Portillos Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.34 1.37 1.11 1.16 1.13

Competitive Comparison of Portillos's Altman Z-Score

For the Restaurants subindustry, Portillos'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.


Portillos's Altman Z-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Portillos's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Portillos's Altman Z-Score falls into.



Portillos 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.

Portillos'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*-0.0526+1.4*0.0128+3.3*0.0428+0.6*0.6458+1.0*0.4868
=0.97

* 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. 2024:
Total Assets was $1,416.9 Mil.
Total Current Assets was $42.4 Mil.
Total Current Liabilities was $116.9 Mil.
Retained Earnings was $18.2 Mil.
Pre-Tax Income was 4.207 + 9.29 + 9.168 + 11.44 = $34.1 Mil.
Interest Expense was -6.53 + -6.931 + -6.573 + -6.523 = $-26.6 Mil.
Revenue was 165.831 + 187.858 + 166.805 + 169.182 = $689.7 Mil.
Market Cap (Today) was $622.9 Mil.
Total Liabilities was $964.5 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
=(42.387 - 116.875)/1416.89
=-0.0526

X2=Retained Earnings/Total Assets
=18.174/1416.89
=0.0128

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(34.105 - -26.557)/1416.89
=0.0428

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=622.898/964.545
=0.6458

X5=Revenue/Total Assets
=689.676/1416.89
=0.4868

The zones of discrimination were as such:

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

Portillos has a Altman Z-Score of 0.97 indicating it is in Distress Zones.

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


Portillos  (NAS:PTLO) 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.


Portillos Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Portillos's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Portillos (Portillos) Business Description

Traded in Other Exchanges
N/A
Address
2001 Spring Road, Suite 400, Oak Brook, IL, USA, 60523
Portillos Inc serves the Chicago street food industry through high-energy and multichannel restaurants. It owns and operates fast-casual restaurants in the United States, along with two food production commissaries in Illinois. Its menu includes hot dogs, beef and sausage sandwiches, sandwiches and ribs, salads, burgers, chicken, Barnelli's pasta, sides and soup, and desserts and shakes.
Executives
Derrick Lee Pratt officer: Chief Operating Officer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michael Osanloo director, officer: President & CEO C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523
Kelly M Kaiser officer: General Counsel and Secretary 2001 SPRING RD, STE 400, OAK BROOK IL 60523-1903
Cook George Richard Iii officer: Senior VP, Technology C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Jill Francine Waite officer: Chief Human Resources Officer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Nicholas Anthony Scarpino officer: See Remarks C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michael K Ellis officer: Chief Development Officer C/O EINSTEIN NOAH RESTAURANT GROUP, INC., 555 ZANG STREET, SUITE 300, LAKEWOOD CO 80228
Paulette R. Dodson director PETSMART, INC, 19601 N 27TH AVE, PHOENIX AZ 85027
Berkshire Fund Viii-a, L.p. director, 10 percent owner C/O EIGHTH BERKSHIRE ASSOCIATES LLC, 200 CLARENDON STREET, BOSTON MA 02116
Eighth Berkshire Associates Llc director, 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116-5009
Joshua Adam Lutzker director C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michelle Greig Hook officer: CFO & Treasurer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Sherri Lynn Abruscato officer: See Remarks C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Susan Beth Shelton officer: General Counsel and Secretary C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Berkshire Fund Viii, L.p. director, 10 percent owner C/O EIGHTH BERKSHIRE ASSOCIATES LLC, 200 CLARENDON STREET, BOSTON MA 02116

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