Fletcher Building's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 42.81.
Fletcher Building's Days Inventory for the
six
months ended in Dec. 2025 was 128.62.
Fletcher Building's Days Payable for the
six
months ended in Dec. 2025 was 98.64.
Therefore, Fletcher Building's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 72.79.
Fletcher Building (OTCPK:FRCEF) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Fletcher Building Cash Conversion Cycle Related Terms
Fletcher Building Cash Conversion Cycle Historical Data
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The historical data trend for Fletcher Building's Cash Conversion Cycle 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.
FRCEF vs CRH, VMC, MLM: Cash Conversion Cycle Comparison
For the Building Materials subindustry, Fletcher Building's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.
Fletcher Building Cash Conversion Cycle vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Fletcher Building's Cash Conversion Cycle falls into.
Fletcher Building Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Fletcher Building's Cash Conversion Cycle for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Fletcher Building (FRCEF) has a Cash Conversion Cycle of 72.79 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Fletcher Building and its competitors.
Is Fletcher Building's Cash Conversion Cycle too high?
Fletcher Building's current Cash Conversion Cycle is 72.79. The Building Materials industry median Cash Conversion Cycle is 75.61. Fletcher Building's value of 72.79 is 3.7% below this industry median. Overall, Fletcher Building has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's Cash Conversion Cycle compare to CRH and VMC?
Fletcher Building's Cash Conversion Cycle of 72.79 can be compared against companies in the Building Materials industry. The industry median Cash Conversion Cycle is 75.61. Fletcher Building's value of 72.79 is 3.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Building Materials company?
The median Cash Conversion Cycle among Building Materials companies is 75.61, based on 402 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fletcher Building's current Cash Conversion Cycle of 72.79 is 3.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Fletcher Building and its competitors. For the Building Materials industry, the median Cash Conversion Cycle is 75.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current Cash Conversion Cycle is 72.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Fletcher Building (FRCEF) has a current Cash Conversion Cycle of 72.79. The stock's GF Value™ is $1.17, compared to a current price of $1.63 — trading 39.3% above its estimated fair value. The current Cash Conversion Cycle is 72.79 and 3.7% below the Building Materials industry median of 75.61. Fletcher Building's overall GF Score™ is 54/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Fletcher Building (FRCEF), the current Cash Conversion Cycle is 72.79 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fletcher Building (FRCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of $1.63 is trading 39.3% above its estimated GF Value™ of $1.17.
Key valuation signals for FRCEF:
Cash Conversion Cycle: 72.79
GF Value™: $1.17 vs. price of $1.63 (39.3% above fair value)
Industry Position: 3.7% below the Building Materials median
No single metric tells the full story. See the FRCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
54GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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