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Nakayama Steel Works has a Cash Ratio of 0.84. 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 Nakayama Steel Works's Cash Ratio or its related term are showing as below:
TSE:5408'
s Cash Ratio Range Over the Past 10 Years
Min: 0.42 Med: 0.61 Max: 0.84
Current: 0.84
During the past 13 years, Nakayama Steel Works's highest Cash Ratio was 0.84. The lowest was 0.42. And the median was 0.61.
TSE:5408's Cash Ratio is ranked better than 77.05% of 597
companies
in the Steel industry
Industry Median: 0.25
vs TSE:5408: 0.84
Nakayama Steel Works (TSE:5408) 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.
Nakayama Steel Works Cash Ratio Related Terms
Nakayama Steel Works Cash Ratio Historical Data
* Premium members only.
The historical data trend for Nakayama Steel Works'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 Steel subindustry, Nakayama Steel Works'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.
Nakayama Steel Works Cash Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Nakayama Steel Works's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Nakayama Steel Works'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.
Nakayama Steel Works (TSE:5408) has a Cash Ratio of 0.84 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Nakayama Steel Works and its competitors. This is 38% above median its historical median of 0.61. Over the past decade, Nakayama Steel Works' Cash Ratio has ranged from 0.42 to 0.84. According to the industry distribution chart, Nakayama Steel Works ranks #137 out of 597 companies in the Steel industry, placing it in the top 22.9%.
Is Nakayama Steel Works' Cash Ratio too high?
Nakayama Steel Works' current Cash Ratio of 0.84 is 38% above median its 10-year median of 0.61. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 0.84. The Steel industry median Cash Ratio is 0.25. Nakayama Steel Works' value of 0.84 is 236% above this industry median. Based on the distribution chart, Nakayama Steel Works ranks #137 out of 597 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Nakayama Steel Works has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nakayama Steel Works' Cash Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Nakayama Steel Works ranks #137 out of 597 companies for Cash Ratio. This places Nakayama Steel Works in the top 23% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.25. Nakayama Steel Works' value of 0.84 is 236% above this benchmark. Historically, Nakayama Steel Works' own Cash Ratio has ranged from 0.42 to 0.84 over the past decade. While the company's 10-year median is 0.61 vs. the industry median of 0.25, Nakayama Steel Works 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 Steel company?
The median Cash Ratio among Steel companies is 0.25, based on 597 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. Nakayama Steel Works's current Cash Ratio of 0.84 is 236% 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 Nakayama Steel Works and its competitors. For the Steel industry, the median Cash Ratio is 0.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nakayama Steel Works's current Cash Ratio is 0.84, which is 38% above median its own 10-year median of 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nakayama Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nakayama Steel Works (TSE:5408) is currently considered Fairly Valued. The stock's GF Value™ is 円615.55, compared to a current price of 円642.00 — trading 4.3% above its estimated fair value. The current Cash Ratio is 0.84, which is 38% above median its 10-year median of 0.61 and 236% above the Steel industry median of 0.25. Nakayama Steel Works' overall GF Score™ is 65/100 with 4 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 Nakayama Steel Works (TSE:5408), the current Cash Ratio is 0.84 as of Jun. 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 Nakayama Steel Works (TSE:5408) Overvalued in 2026?
Based on GuruFocus' analysis, Nakayama Steel Works stock appears to be overvalued.
The current stock price of 円642.00 is trading 4.3% above its estimated GF Value™ of 円615.55.
GuruFocus considers Nakayama Steel Works to be Fairly Valued.
Key valuation signals for TSE:5408:
Cash Ratio: 0.84 (38% above median its 10-year median of 0.61)
GF Value™: 円615.55 vs. price of 円642.00 (4.3% above fair value)
Industry Position: 236% above the Steel median (#137 of 597)
No single metric tells the full story. See the TSE:5408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nakayama Steel Works Ltd is a Japan-based company. The company operates in Steel, Engineering, and Real estate business. Its Steel business includes manufacturing and sale of steel products including coil products, steel sheets, bars and wire products. The company is also engaged in real estate buying, leasing and selling.
65GF Score
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