MP MaterialsMP -0.56%68 Cash Ratio is 6.09 as of Mar. 2026, which is 46% below its 10-year median of 11.18. GuruFocus rates MP with a GF Score™ of 68/100 and a GF Value™ of $32.94 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,564 Metals & Mining companies, MP Materials ranks better than 73.24% on this metric.
MP Materials has a Cash Ratio of 6.09. 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 MP Materials's Cash Ratio or its related term are showing as below:
MP'
s Cash Ratio Range Over the Past 10 Years
Min: 0.09 Med: 11.18 Max: 23.91
Current: 6.09
During the past 7 years, MP Materials's highest Cash Ratio was 23.91. The lowest was 0.09. And the median was 11.18.
MP's Cash Ratio is ranked better than 73.24% of 2564
companies
in the Metals & Mining industry
Industry Median: 1.815
vs MP: 6.09
MP Materials (NYSE:MP) 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.
MP Materials Cash Ratio Related Terms
MP Materials Cash Ratio Historical Data
* Premium members only.
The historical data trend for MP Materials'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 Other Industrial Metals & Mining subindustry, MP 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.
MP Materials Cash Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, MP Materials's Cash Ratio distribution charts can be found below:
* The bar in red indicates where MP 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.
MP Materials (MP) has a Cash Ratio of 6.09 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on MP Materials and its competitors. This is 46% below median its historical median of 11.18. Over the past decade, MP Materials' Cash Ratio has ranged from 0.09 to 23.91. According to the industry distribution chart, MP Materials ranks #686 out of 2564 companies in the Metals & Mining industry, placing it in the top 26.8%.
Is MP Materials' Cash Ratio too high?
MP Materials' current Cash Ratio of 6.09 is 46% below median its 10-year median of 11.18. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 23.91. The Metals & Mining industry median Cash Ratio is 1.82. MP Materials' value of 6.09 is 235.5% above this industry median. Based on the distribution chart, MP Materials ranks #686 out of 2564 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, MP Materials has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MP Materials' Cash Ratio compare to MTRN and USAR?
According to the Metals & Mining industry distribution chart, MP Materials ranks #686 out of 2564 companies for Cash Ratio. This puts MP Materials in the upper half of its industry. The industry median Cash Ratio is 1.82. MP Materials' value of 6.09 is 235.5% above this benchmark. Historically, MP Materials' own Cash Ratio has ranged from 0.09 to 23.91 over the past decade. While the company's 10-year median is 11.18 vs. the industry median of 1.82, MP 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 Metals & Mining company?
The median Cash Ratio among Metals & Mining companies is 1.82, based on 2,564 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. MP Materials's current Cash Ratio of 6.09 is 235.5% 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 MP Materials and its competitors. For the Metals & Mining industry, the median Cash Ratio is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MP Materials's current Cash Ratio is 6.09, which is 46% below median its own 10-year median of 11.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MP Materials stock overvalued right now?
Based on GuruFocus' analysis, MP Materials (MP) is currently considered Significantly Overvalued. The stock's GF Value™ is $32.94, compared to a current price of $53.01 — trading 60.9% above its estimated fair value. The current Cash Ratio is 6.09, which is 46% below median its 10-year median of 11.18 and 235.5% above the Metals & Mining industry median of 1.82. MP Materials' overall GF Score™ is 68/100 with 2 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 MP Materials (MP), the current Cash Ratio is 6.09 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 MP Materials (MP) Overvalued in 2026?
Based on GuruFocus' analysis, MP Materials stock appears to be overvalued.
The current stock price of $53.01 is trading 60.9% above its estimated GF Value™ of $32.94.
GuruFocus considers MP Materials to be Significantly Overvalued.
Key valuation signals for MP:
Cash Ratio: 6.09 (46% below median its 10-year median of 11.18)
GF Value™: $32.94 vs. price of $53.01 (60.9% above fair value)
Industry Position: 235.5% above the Metals & Mining median (#686 of 2564)
No single metric tells the full story. See the MP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MP Materials Corp is the producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company is also developing a rare earth metal, alloy, and magnet manufacturing facility in Fort Worth, Texas. The company's operations are organized into two reportable segments: Materials and Magnetics.
68GF Score
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