Japan TobaccoJAPAF +0.10%75 Cash Ratio is 0.46 as of Mar. 2026, which is 10% above its 10-year median of 0.42. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $32.94 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 46 Tobacco Products companies, Japan Tobacco ranks better than 50% on this metric.
Japan Tobacco has a Cash Ratio of 0.46. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Japan Tobacco's Cash Ratio or its related term are showing as below:
JAPAF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.42 Max: 0.64
Current: 0.46
During the past 13 years, Japan Tobacco's highest Cash Ratio was 0.64. The lowest was 0.14. And the median was 0.42.
JAPAF's Cash Ratio is ranked better than 50% of 46
companies
in the Tobacco Products industry
Industry Median: 0.46
vs JAPAF: 0.46
Japan Tobacco (OTCPK:JAPAF) 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.
Japan Tobacco Cash Ratio Related Terms
Japan Tobacco Cash Ratio Historical Data
* Premium members only.
The historical data trend for Japan Tobacco's Cash Ratio 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.
For the Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco Cash Ratio vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Japan Tobacco'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.
Japan Tobacco (JAPAF) has a Cash Ratio of 0.46 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Japan Tobacco and its competitors. This is 10% above median its historical median of 0.42. Over the past decade, Japan Tobacco's Cash Ratio has ranged from 0.14 to 0.64. According to the industry distribution chart, Japan Tobacco ranks #23 out of 46 companies in the Tobacco Products industry, placing it in the top 50%.
Is Japan Tobacco's Cash Ratio too high?
Japan Tobacco's current Cash Ratio of 0.46 is 10% above median its 10-year median of 0.42. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 0.64. The Tobacco Products industry median Cash Ratio is 0.46. Japan Tobacco's value of 0.46 is 0% at this industry median. Based on the distribution chart, Japan Tobacco ranks #23 out of 46 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Cash Ratio compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #23 out of 46 companies for Cash Ratio. This puts Japan Tobacco in the upper half of its industry. The industry median Cash Ratio is 0.46. Japan Tobacco's value of 0.46 is 0% at this benchmark. Historically, Japan Tobacco's own Cash Ratio has ranged from 0.14 to 0.64 over the past decade. While the company's 10-year median is 0.42 vs. the industry median of 0.46, Japan Tobacco has consistently been at 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 Tobacco Products company?
The median Cash Ratio among Tobacco Products companies is 0.46, based on 46 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. Japan Tobacco's current Cash Ratio of 0.46 is 0% at 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 Japan Tobacco and its competitors. For the Tobacco Products industry, the median Cash Ratio is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current Cash Ratio is 0.46, which is 10% above median its own 10-year median of 0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.94, compared to a current price of $38.40 — trading 16.6% above its estimated fair value. The current Cash Ratio is 0.46, which is 10% above median its 10-year median of 0.42 and 0% at the Tobacco Products industry median of 0.46. Japan Tobacco's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Japan Tobacco (JAPAF), the current Cash Ratio is 0.46 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $38.40 is trading 16.6% above its estimated GF Value™ of $32.94.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
Cash Ratio: 0.46 (10% above median its 10-year median of 0.42)
GF Value™: $32.94 vs. price of $38.40 (16.6% above fair value)
Industry Position: 0% at the Tobacco Products median (#23 of 46)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score
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