Megachem (SGX:5DS) Current Ratio: 1.64 (As of Dec. 2025) — 15% Below Median

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SGX:5DS Megachem Ltd SGX:5DS
44 GF Score
Price S$0.49
GF Value S$0.42
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Megachem Current Ratio?

Megachem SGX:5DS 44 Current Ratio is 1.64 as of Dec. 2025, which is 15% below its 10-year median of 1.94. GuruFocus rates SGX:5DS with a GF Score™ of 44/100 and a GF Value™ of S$0.42 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,606 Chemicals companies, Megachem ranks worse than 59.84% 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. Megachem's current ratio for the quarter that ended in Dec. 2025 was 1.64.

Megachem has a current ratio of 1.64. It generally indicates good short-term financial strength.

The historical rank and industry rank for Megachem's Current Ratio or its related term are showing as below:

SGX:5DS' s Current Ratio Range Over the Past 10 Years
Min: 1.64   Med: 1.94   Max: 2.3
Current: 1.64

During the past 13 years, Megachem's highest Current Ratio was 2.30. The lowest was 1.64. And the median was 1.94.

SGX:5DS's Current Ratio is ranked worse than
59.84% of 1606 companies
in the Chemicals industry
Industry Median: 1.89 vs SGX:5DS: 1.64

Megachem  (SGX:5DS) 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.


Megachem Current Ratio Related Terms


Megachem Current Ratio Historical Data

* Premium members only.

The historical data trend for Megachem'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.

Megachem Current Ratio Chart

Megachem Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.81 1.75 1.67 1.80 1.64

Megachem Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.67 1.70 1.80 1.84 1.64

SGX:5DS vs LIN, SHW, ECL: Current Ratio Comparison

For the Specialty Chemicals subindustry, Megachem'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.


Megachem Current Ratio vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Megachem's Current Ratio distribution charts can be found below:

* The bar in red indicates where Megachem's Current Ratio falls into.


SGX:5DS
44GF Score
Megachem Ltd SGX:5DS
Current Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Megachem Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Megachem's Current Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Current Ratio (A: Dec. 2025 )=Total Current Assets (A: Dec. 2025 )/Total Current Liabilities (A: Dec. 2025 )
=69.661/42.426
=1.64

Megachem's Current Ratio for the quarter that ended in Dec. 2025 is calculated as

Current Ratio (Q: Dec. 2025 )=Total Current Assets (Q: Dec. 2025 )/Total Current Liabilities (Q: Dec. 2025 )
=69.661/42.426
=1.64

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 1.64 mean?
Megachem (SGX:5DS) has a Current Ratio of 1.64 as of Dec. 2025. This is 15% below median its historical median of 1.94. Over the past decade, Megachem's Current Ratio has ranged from 1.64 to 2.30. According to the industry distribution chart, Megachem ranks #961 out of 1606 companies in the Chemicals industry, placing it in the top 59.8%.
Is Megachem's Current Ratio too high?
Megachem's current Current Ratio of 1.64 is 15% below median its 10-year median of 1.94. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 2.30. The Chemicals industry median Current Ratio is 1.89. Megachem's value of 1.64 is 13.2% below this industry median. Based on the distribution chart, Megachem ranks #961 out of 1606 companies in the Chemicals industry, which is below the industry midpoint. Overall, Megachem has a GF Score™ of 44/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megachem's Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Megachem ranks #961 out of 1606 companies for Current Ratio. This places Megachem in the lower half of its industry. The industry median Current Ratio is 1.89. Megachem's value of 1.64 is 13.2% below this benchmark. Historically, Megachem's own Current Ratio has ranged from 1.64 to 2.30 over the past decade. While the company's 10-year median is 1.94 vs. the industry median of 1.89, Megachem 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 a Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,606 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. Megachem's current Current Ratio of 1.64 is 13.2% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megachem's current Current Ratio is 1.64, which is 15% below median its own 10-year median of 1.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megachem stock overvalued right now?
Based on GuruFocus' analysis, Megachem (SGX:5DS) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.42, compared to a current price of S$0.49 — trading 16.7% above its estimated fair value. The current Current Ratio is 1.64, which is 15% below median its 10-year median of 1.94 and 13.2% below the Chemicals industry median of 1.89. Megachem's overall GF Score™ is 44/100 with 7 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 Megachem (SGX:5DS), the current Current Ratio is 1.64 as of Dec. 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 Megachem (SGX:5DS) Overvalued in 2026?

Based on GuruFocus' analysis, Megachem stock appears to be overvalued. The current stock price of S$0.49 is trading 16.7% above its estimated GF Value™ of S$0.42. GuruFocus considers Megachem to be Modestly Overvalued.

Key valuation signals for SGX:5DS:

  • Current Ratio: 1.64 (15% below median its 10-year median of 1.94)
  • GF Value™: S$0.42 vs. price of S$0.49 (16.7% above fair value)
  • GF Score™: 44/100 with 7 warning signs
  • Industry Position: 13.2% below the Chemicals median (#961 of 1606)

No single metric tells the full story. See the SGX:5DS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Megachem Business Description

Address 11 Tuas Link 1, Singapore, SGP, 638588
Megachem Ltd is a specialty chemical solutions provider, offering integrated value-added services including contract manufacturing tailored to customers' needs, as well as distribution of specialty chemicals. The company offers various specialty chemicals comprising adhesives, resins, polymers, cooling brine, anti-foam, surfactant, biocide, heat transfer fluid, plasticizer, silicone fluid, etc. Its customers belong to various industries, including textile, construction, biotech, oil and gas, pulp and paper, electronics, industrial cleaning, and others. The majority of the company's revenue is derived from its chemical distribution business. Megachem's operating segments are: Singapore, which generates the maximum revenue, Malaysia. the United Kingdom, China, Middle East, and Others.
44GF Score

Get the complete analysis for SGX:5DS

Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

S$0.49
Price
S$0.42
GF Value