Sotetsu Holdings's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 19.65.
Sotetsu Holdings's Days Inventory for the
three
months ended in Mar. 2026 was 155.46.
Sotetsu Holdings's Days Payable for the
three
months ended in Mar. 2026 was 15.14.
Therefore, Sotetsu Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 159.97.
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.
Sotetsu Holdings Cash Conversion Cycle Related Terms
Sotetsu Holdings Cash Conversion Cycle Historical Data
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The historical data trend for Sotetsu Holdings'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.
TSE:9003 vs HON, MMM: Cash Conversion Cycle Comparison
For the Conglomerates subindustry, Sotetsu Holdings'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.
Sotetsu Holdings Cash Conversion Cycle vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sotetsu Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sotetsu Holdings's Cash Conversion Cycle falls into.
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.
Sotetsu Holdings's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 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.
Sotetsu Holdings (TSE:9003) has a Cash Conversion Cycle of 159.97 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sotetsu Holdings and its competitors.
Is Sotetsu Holdings' Cash Conversion Cycle too high?
Sotetsu Holdings' current Cash Conversion Cycle is 159.97. The Conglomerates industry median Cash Conversion Cycle is 70.90. Sotetsu Holdings' value of 159.97 is 125.6% above this industry median. Overall, Sotetsu Holdings has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sotetsu Holdings' Cash Conversion Cycle compare to HON and MMM?
Sotetsu Holdings' Cash Conversion Cycle of 159.97 can be compared against companies in the Conglomerates industry. The industry median Cash Conversion Cycle is 70.90. Sotetsu Holdings' value of 159.97 is 125.6% above 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 Conglomerates company?
The median Cash Conversion Cycle among Conglomerates companies is 70.90, based on 549 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. Sotetsu Holdings's current Cash Conversion Cycle of 159.97 is 125.6% above 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 Sotetsu Holdings and its competitors. For the Conglomerates industry, the median Cash Conversion Cycle is 70.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotetsu Holdings's current Cash Conversion Cycle is 159.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotetsu Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sotetsu Holdings (TSE:9003) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,923.12, compared to a current price of 円2,524.50 — trading 13.6% below its estimated fair value. The current Cash Conversion Cycle is 159.97 and 125.6% above the Conglomerates industry median of 70.90. Sotetsu Holdings' overall GF Score™ is 77/100 with 3 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 Sotetsu Holdings (TSE:9003), the current Cash Conversion Cycle is 159.97 as of Mar. 2026. 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 Sotetsu Holdings (TSE:9003) Overvalued in 2026?
Based on GuruFocus' analysis, Sotetsu Holdings stock appears to be undervalued.
The current stock price of 円2,524.50 is trading 13.6% below its estimated GF Value™ of 円2,923.12.
GuruFocus considers Sotetsu Holdings to be Modestly Undervalued.
Key valuation signals for TSE:9003:
Cash Conversion Cycle: 159.97
GF Value™: 円2,923.12 vs. price of 円2,524.50 (13.6% below fair value)
Industry Position: 125.6% above the Conglomerates median
No single metric tells the full story. See the TSE:9003 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotetsu Holdings Inc is a Japanese operator of railway trains and busses. Next to the core business of transporting people and freight, the company operates a real estate business selling and leasing real estate and offers construction works and building maintenance services. Other business ventures include golf courses, hotels, and travel agents.
77GF Score
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