EO2FRA:EO4 +0.83%68 Current Ratio is 3.28 as of Aug. 2025, which is 17% above its 10-year median of 2.80. GuruFocus rates FRA:EO4 with a GF Score™ of 68/100 and a GF Value™ of €3.99. The stock has 4 warning signs investors should review. Among 289 Forest Products companies, EO2 ranks better than 82.01% on this metric.
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. EO2's current ratio for the quarter that ended in Aug. 2025 was 3.28.
EO2 has a current ratio of 3.28. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for EO2's Current Ratio or its related term are showing as below:
FRA:EO4'
s Current Ratio Range Over the Past 10 Years
Min: 1.05 Med: 2.8 Max: 3.91
Current: 3.28
During the past 13 years, EO2's highest Current Ratio was 3.91. The lowest was 1.05. And the median was 2.80.
FRA:EO4's Current Ratio is ranked better than 82.01% of 289
companies
in the Forest Products industry
Industry Median: 1.52
vs FRA:EO4: 3.28
EO2 (FRA:EO4) 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.
EO2 Current Ratio Related Terms
EO2 Current Ratio Historical Data
* Premium members only.
The historical data trend for EO2's Current 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.
FRA:EO4 vs SSD, UFPI, BCC: Current Ratio Comparison
For the Lumber & Wood Production subindustry, EO2'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.
EO2 Current Ratio vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, EO2's Current Ratio distribution charts can be found below:
* The bar in red indicates where EO2'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.
EO2 (FRA:EO4) has a Current Ratio of 3.28 as of Aug. 2025. This is 17% above median its historical median of 2.80. Over the past decade, EO2's Current Ratio has ranged from 1.05 to 3.91. According to the industry distribution chart, EO2 ranks #52 out of 289 companies in the Forest Products industry, placing it in the top 18%.
Is EO2's Current Ratio too high?
EO2's current Current Ratio of 3.28 is 17% above median its 10-year median of 2.80. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 3.91. The Forest Products industry median Current Ratio is 1.52. EO2's value of 3.28 is 115.8% above this industry median. Based on the distribution chart, EO2 ranks #52 out of 289 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, EO2 has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does EO2's Current Ratio compare to SSD and UFPI?
According to the Forest Products industry distribution chart, EO2 ranks #52 out of 289 companies for Current Ratio. This places EO2 in the top 18% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.52. EO2's value of 3.28 is 115.8% above this benchmark. Historically, EO2's own Current Ratio has ranged from 1.05 to 3.91 over the past decade. While the company's 10-year median is 2.80 vs. the industry median of 1.52, EO2 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 Current Ratio for a Forest Products company?
The median Current Ratio among Forest Products companies is 1.52, based on 289 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. EO2's current Current Ratio of 3.28 is 115.8% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Forest Products industry, the median Current Ratio is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EO2's current Current Ratio is 3.28, which is 17% above median its own 10-year median of 2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EO2 stock overvalued right now?
EO2 (FRA:EO4) has a current Current Ratio of 3.28. The stock's GF Value™ is €3.99, compared to a current price of €2.44 — trading 38.8% below its estimated fair value. The current Current Ratio is 3.28, which is 17% above median its 10-year median of 2.80 and 115.8% above the Forest Products industry median of 1.52. EO2's overall GF Score™ is 68/100 with 4 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 EO2 (FRA:EO4), the current Current Ratio is 3.28 as of Aug. 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 EO2 (FRA:EO4) Overvalued in 2026?
Based on GuruFocus' analysis, EO2 stock appears to be undervalued.
The current stock price of €2.44 is trading 38.8% below its estimated GF Value™ of €3.99.
Key valuation signals for FRA:EO4:
Current Ratio: 3.28 (17% above median its 10-year median of 2.80)
GF Value™: €3.99 vs. price of €2.44 (38.8% below fair value)
Industry Position: 115.8% above the Forest Products median (#52 of 289)
No single metric tells the full story. See the FRA:EO4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EO2 SA designs, produces, operates and distributes a range of wood heating products under the EO2 and PIKS brands, including bagged wood pellets, pallets and bulk.
68GF Score
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