--- name: "valuation_scores" area: "valuation" title: "Score a company's financial health" price: "free" method: "POST" url: "https://api.conecto.chat/v1/tools/valuation_scores" mcp_server: "https://api.conecto.chat/mcp/valuation" auth: "Authorization: Bearer " docs_url: "https://conecto.chat/tools/valuation/valuation_scores" --- # Score a company's financial health (`valuation_scores`) Altman, Piotroski and Beneish scores from a company's figures, and whether it is growing, mature or distressed. From one or more years of figures: the Altman Z-score (public or private manufacturer, or the non-manufacturing Z'') and its zone, the Piotroski F-score with each of its nine signals, the Beneish M-score with its eight indexes (both need two years), and whether the company is growing, mature or distressed, with the reasons. A figure that is missing is named, never guessed. Price: Free up to 1,000,000 reads a month for the whole account, then $0.50 per 10,000 reads. A call that fails costs nothing. ## Use it when Before an offer, to check a target's financial health and its earnings quality. ## Say this to your agent > Are there warning signs in Kuechentechnik Nord's last two years of accounts? ## Inputs | Name | Type | Required | Description | Allowed values | Default | |---|---|---|---|---|---| | `years` | array of objects | yes | One object per year; companies_financials gives these fields. 1 to 10 items. | | | | `years[].year` | integer | no | 1,900 to 2,200. | | | | `years[].revenue` | number | no | | | | | `years[].cost_of_sales` | number | no | | | | | `years[].gross_profit` | number | no | | | | | `years[].sga` | number | no | | | | | `years[].ebit` | number | no | | | | | `years[].ebitda` | number | no | | | | | `years[].net_income` | number | no | | | | | `years[].operating_cash_flow` | number | no | | | | | `years[].total_assets` | number | no | | | | | `years[].current_assets` | number | no | | | | | `years[].current_liabilities` | number | no | | | | | `years[].long_term_debt` | number | no | | | | | `years[].total_liabilities` | number | no | | | | | `years[].total_equity` | number | no | | | | | `years[].retained_earnings` | number | no | | | | | `years[].shares_outstanding` | number | no | | | | | `years[].receivables` | number | no | | | | | `years[].depreciation` | number | no | | | | | `years[].ppe_net` | number | no | | | | | `years[].market_cap` | number | no | | | | | `altman` | string | no | | `"public_manufacturing"`, `"private_manufacturing"`, `"non_manufacturing"` | `"non_manufacturing"` | | `growth_threshold` | number | no | Revenue growth a year that counts as growing. A decimal: 0.09 is 9%. 0 to 1. | | | ## Example Written for Hansen & Voss, a restaurant-equipment wholesaler in Hamburg with 60 staff. MCP: call `valuation_scores` on the MCP server `https://api.conecto.chat/mcp/valuation` with these arguments: ```json { "years": [ { "year": 2024, "revenue": 16.9, "cost_of_sales": 11.8, "sga": 3.0, "ebit": 1.4, "net_income": 0.9, "operating_cash_flow": 1.5, "total_assets": 12.1, "current_assets": 7.2, "current_liabilities": 3.9, "long_term_debt": 3.6, "total_liabilities": 7.9, "total_equity": 4.2, "retained_earnings": 3.1, "shares_outstanding": 1, "receivables": 2.4, "depreciation": 0.5, "ppe_net": 3.8 }, { "year": 2025, "revenue": 18.4, "cost_of_sales": 12.7, "sga": 3.2, "ebit": 1.8, "net_income": 1.3, "operating_cash_flow": 2.0, "total_assets": 12.9, "current_assets": 7.8, "current_liabilities": 4.0, "long_term_debt": 3.2, "total_liabilities": 7.6, "total_equity": 5.3, "retained_earnings": 4.2, "shares_outstanding": 1, "receivables": 2.5, "depreciation": 0.5, "ppe_net": 3.9 } ] } ``` REST: ```bash curl https://api.conecto.chat/v1/tools/valuation_scores \ -H "Authorization: Bearer $CONECTO_KEY" \ -H "Content-Type: application/json" \ -d '{"years": [{"year": 2024, "revenue": 16.9, "cost_of_sales": 11.8, "sga": 3.0, "ebit": 1.4, "net_income": 0.9, "operating_cash_flow": 1.5, "total_assets": 12.1, "current_assets": 7.2, "current_liabilities": 3.9, "long_term_debt": 3.6, "total_liabilities": 7.9, "total_equity": 4.2, "retained_earnings": 3.1, "shares_outstanding": 1, "receivables": 2.4, "depreciation": 0.5, "ppe_net": 3.8}, {"year": 2025, "revenue": 18.4, "cost_of_sales": 12.7, "sga": 3.2, "ebit": 1.8, "net_income": 1.3, "operating_cash_flow": 2.0, "total_assets": 12.9, "current_assets": 7.8, "current_liabilities": 4.0, "long_term_debt": 3.2, "total_liabilities": 7.6, "total_equity": 5.3, "retained_earnings": 4.2, "shares_outstanding": 1, "receivables": 2.5, "depreciation": 0.5, "ppe_net": 3.9}]}' ``` ## Response ```json { "call_id": "5f0c8a2e-3b7d-4c1e-9a64-2d8e1f7b0c93", "tool": "valuation_scores", "status": "succeeded", "replayed": false, "cost_usd": "$0.00", "balance_usd": "$19.75", "result": { "year": 2025, "altman": { "model": "non_manufacturing", "x1": 0.294574, "x2": 0.325581, "x3": 0.139535, "x4": 0.697368, "z": 4.66371, "zone": "safe", "lines": { "distress_below": 1.1, "safe_above": 2.6 } }, "piotroski": { "score": 9, "of": 9, "complete": true, "signals": [ { "signal": "roa_positive", "passed": true }, { "signal": "operating_cash_flow_positive", "passed": true } ], "reading": "ROA on year-end total assets; 8 or 9 is strong, 0 to 2 weak." }, "beneish": { "m_score": -2.66006, "flag": "unlikely", "threshold": -1.78, "indexes": { "dsri": 0.956748, "gmi": 0.974151, "aqi": 1.023256, "sgi": 1.088757, "depi": 1.023256, "sgai": 0.97971, "tata": -0.054264, "lvgi": 0.900465 }, "reading": "Above -1.78, the figures look like those of companies that manipulated earnings (Beneish 1999)." }, "maturity": { "cluster": "mature", "reasons": [ "Revenue grew 8.88% a year (the growth line is 10.00%)." ] } } } ``` `result`: year, altman (model, x1 to x5, z, zone, lines), piotroski (score of 9, complete and each signal), beneish (m_score, flag, threshold, indexes), maturity (cluster and reasons); a score that lacks figures names them under missing. ## Errors This tool has no errors of its own. The refusals every tool can give (401 key, 402 balance, 429 limits) are on the errors page: https://conecto.chat/docs/errors.md ## Related - [valuation_dcf](https://conecto.chat/tools/valuation/valuation_dcf.md): A DCF valuation from free cash flows and a WACC: present values, terminal value, enterprise and equity value, and a sensitivity grid. Free up to 1,000,000 reads a month. - [valuation_wacc](https://conecto.chat/tools/valuation/valuation_wacc.md): The WACC from the risk-free rate, the market premium and a beta relevered from peers, with each step written out. Free up to 1,000,000 reads a month. - [valuation_rates](https://conecto.chat/tools/valuation/valuation_rates.md): Today's risk-free curve and its recent average from the Bundesbank, the ECB or the US Treasury, as decimals. Free up to 1,000,000 reads a month. - [valuation_fx](https://conecto.chat/tools/valuation/valuation_fx.md): Amounts converted between currencies at the ECB's euro reference rates, on a date or at a past year's average. Free up to 1,000,000 reads a month. - [valuation_multiples](https://conecto.chat/tools/valuation/valuation_multiples.md): Peer multiples with their quartiles and the enterprise and equity value they imply for the target, less any discount. Free up to 1,000,000 reads a month. - [valuation_lbo](https://conecto.chat/tools/valuation/valuation_lbo.md): A buyout financed with debt, year by year: sources and uses, each debt tranche, the exit, MOIC, IRR and an IRR grid by entry and exit multiple. Free up to 1,000,000 reads a month. - [valuation_benchmark](https://conecto.chat/tools/valuation/valuation_benchmark.md): The target's KPIs against its peers: quartiles, percentile, gap to the median and whether each is a strength or a potential. Free up to 1,000,000 reads a month. - [valuation_forecast](https://conecto.chat/tools/valuation/valuation_forecast.md): Model forecasts with 80% and 95% intervals for revenue, EBITDA or monthly sales, with a confidence label and the plan checked against the range. Free up to 1,000,000 reads a month. - [valuation_beta](https://conecto.chat/tools/valuation/valuation_beta.md): Betas of listed peers from closing prices the business gives, with R squared, the t-statistic and the unlevered beta. Free up to 1,000,000 reads a month. - [valuation_football_field](https://conecto.chat/tools/valuation/valuation_football_field.md): The valuation ranges side by side, with the overall range, the overlap, markers and a slide for the deck. Free up to 1,000,000 reads a month.