5E Advanced MaterialsFEAM -2.99%32 Cash Ratio is 6.41 as of Mar. 2026, which is 439% above its 10-year median of 1.19. GuruFocus rates FEAM with a GF Score™ of 32/100. The stock has 1 warning sign investors should review. Among 1,580 Chemicals companies, 5E Advanced Materials ranks better than 95.89% on this metric.
5E Advanced Materials has a Cash Ratio of 6.41. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for 5E Advanced Materials's Cash Ratio or its related term are showing as below:
FEAM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.09 Med: 1.19 Max: 24.22
Current: 6.41
During the past 5 years, 5E Advanced Materials's highest Cash Ratio was 24.22. The lowest was 0.09. And the median was 1.19.
FEAM's Cash Ratio is ranked better than 95.89% of 1580
companies
in the Chemicals industry
Industry Median: 0.5
vs FEAM: 6.41
5E Advanced Materials (NAS:FEAM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* 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.
For the Specialty Chemicals subindustry, 5E Advanced Materials's Cash Ratio, along with its competitors' market caps and Cash Ratio 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.
5E Advanced Materials Cash Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, 5E Advanced Materials's Cash Ratio distribution charts can be found below:
* The bar in red indicates where 5E Advanced Materials's Cash Ratio falls into.
* 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.
5E Advanced Materials (FEAM) has a Cash Ratio of 6.41 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on 5E Advanced Materials and its competitors. This is 439% above median its historical median of 1.19. Over the past decade, 5E Advanced Materials' Cash Ratio has ranged from 0.09 to 24.22. According to the industry distribution chart, 5E Advanced Materials ranks #65 out of 1580 companies in the Chemicals industry, placing it in the top 4.1%.
Is 5E Advanced Materials' Cash Ratio too high?
5E Advanced Materials' current Cash Ratio of 6.41 is 439% above median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 24.22. The Chemicals industry median Cash Ratio is 0.50. 5E Advanced Materials' value of 6.41 is 1182% above this industry median. Based on the distribution chart, 5E Advanced Materials ranks #65 out of 1580 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, 5E Advanced Materials has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does 5E Advanced Materials' Cash Ratio compare to LOOP and BIOF?
According to the Chemicals industry distribution chart, 5E Advanced Materials ranks #65 out of 1580 companies for Cash Ratio. This places 5E Advanced Materials in the top 4% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.50. 5E Advanced Materials' value of 6.41 is 1182% above this benchmark. Historically, 5E Advanced Materials' own Cash Ratio has ranged from 0.09 to 24.22 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 0.50, 5E Advanced Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Chemicals company?
The median Cash Ratio among Chemicals companies is 0.50, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 5E Advanced Materials's current Cash Ratio of 6.41 is 1182% 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 Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on 5E Advanced Materials and its competitors. For the Chemicals industry, the median Cash Ratio is 0.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 5E Advanced Materials's current Cash Ratio is 6.41, which is 439% above median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 5E Advanced Materials stock overvalued right now?
5E Advanced Materials (FEAM) has a current Cash Ratio of 6.41. The current Cash Ratio is 6.41, which is 439% above median its 10-year median of 1.19 and 1182% above the Chemicals industry median of 0.50. 5E Advanced Materials' overall GF Score™ is 32/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For 5E Advanced Materials (FEAM), the current Cash Ratio is 6.41 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.
5E Advanced Materials Inc is an exploration stage company focused on becoming a vertically integrated supplier of specialty boron and boron derivative materials whose mission is to enable decarbonization, increase food security, and ensure domestic supply of critical materials. It has a project located in southern California underpinned by a mineral resource that includes boron and lithium, with the boron being contained in a conventional boron mineral known as colemanite. The company seeks to extract and process the minerals into boric acid, boron materials, lithium carbonate, and potentially other co-products on a commercial scale.
32GF Score
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