The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Houston American Energy's current ratio for the quarter that ended in Sep. 2025 was 0.38.
Houston American Energy has a current ratio of 0.38. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Houston American Energy has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Houston American Energy's Current Ratio or its related term are showing as below:
FRA:8H6'
s Current Ratio Range Over the Past 10 Years
Min: 0.23 Med: 13.85 Max: 61.59
Current: 0.38
During the past 13 years, Houston American Energy's highest Current Ratio was 61.59. The lowest was 0.23. And the median was 13.85.
FRA:8H6's Current Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.35
vs FRA:8H6: 0.38
Houston American Energy (FRA:8H6) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Houston American Energy Current Ratio Related Terms
Houston American Energy Current Ratio Historical Data
* 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.
FRA:8H6 vs PVL, EP, LRDC: Current Ratio Comparison
For the Oil & Gas E&P subindustry, Houston American Energy's Current Ratio, along with its competitors' market caps and Current 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.
Houston American Energy Current Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Houston American Energy's Current Ratio distribution charts can be found below:
* The bar in red indicates where Houston American Energy's Current 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.
Houston American Energy (FRA:8H6) has a Current Ratio of 0.38 as of Sep. 2025. This is 97% below median its historical median of 13.85. Over the past decade, Houston American Energy's Current Ratio has ranged from 0.23 to 61.59.
Is Houston American Energy's Current Ratio too high?
Houston American Energy's current Current Ratio of 0.38 is 97% below median its 10-year median of 13.85. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 61.59. The Oil & Gas industry median Current Ratio is 1.35. Houston American Energy's value of 0.38 is 71.9% below this industry median. Overall, Houston American Energy has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Houston American Energy's Current Ratio compare to PVL and EP?
Houston American Energy's Current Ratio of 0.38 can be compared against companies in the Oil & Gas industry. The industry median Current Ratio is 1.35. Houston American Energy's value of 0.38 is 71.9% below this benchmark. Historically, Houston American Energy's own Current Ratio has ranged from 0.23 to 61.59 over the past decade. While the company's 10-year median is 13.85 vs. the industry median of 1.35, Houston American Energy has consistently been below 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 Current Ratio for an Oil & Gas company?
The median Current Ratio among Oil & Gas companies is 1.35, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Houston American Energy's current Current Ratio of 0.38 is 71.9% below 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median Current Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houston American Energy's current Current Ratio is 0.38, which is 97% below median its own 10-year median of 13.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houston American Energy stock overvalued right now?
Houston American Energy (FRA:8H6) has a current Current Ratio of 0.38. The stock's GF Value™ is €7.93, compared to a current price of €1.70 — trading 78.6% below its estimated fair value. The current Current Ratio is 0.38, which is 97% below median its 10-year median of 13.85 and 71.9% below the Oil & Gas industry median of 1.35. Houston American Energy's overall GF Score™ is 36/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Houston American Energy (FRA:8H6), the current Current Ratio is 0.38 as of Sep. 2025. 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 Houston American Energy (FRA:8H6) Overvalued in 2026?
Based on GuruFocus' analysis, Houston American Energy stock appears to be undervalued.
The current stock price of €1.70 is trading 78.6% below its estimated GF Value™ of €7.93.
Key valuation signals for FRA:8H6:
Current Ratio: 0.38 (97% below median its 10-year median of 13.85)
GF Value™: €7.93 vs. price of €1.70 (78.6% below fair value)
Industry Position: 71.9% below the Oil & Gas median
No single metric tells the full story. See the FRA:8H6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Louisiana, and the South American country of Colombia. Geographically, the company currently has operations in two geographical areas, the United States, from where it derives maximum revenue, and Colombia.
36GF Score
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