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Shinhokoku MaterialTSE:5542 74 Current Ratio is 7.50 as of Dec. 2025, which is 18% above its 10-year median of 6.37. GuruFocus rates TSE:5542 with a GF Score™ of 74/100 and a GF Value™ of 円555.76 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 634 Steel companies, Shinhokoku Material ranks better than 80.76% 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. Shinhokoku Material's current ratio for the quarter that ended in Dec. 2025 was 7.50.
Shinhokoku Material has a current ratio of 7.50. 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 Shinhokoku Material's Current Ratio or its related term are showing as below:
TSE:5542'
s Current Ratio Range Over the Past 10 Years
Min: 1.92 Med: 6.37 Max: 11.88
Current: 3.8
During the past 13 years, Shinhokoku Material's highest Current Ratio was 11.88. The lowest was 1.92. And the median was 6.37.
TSE:5542's Current Ratio is ranked better than 80.76% of 634
companies
in the Steel industry
Industry Median: 1.63
vs TSE:5542: 3.80
Shinhokoku Material (TSE:5542) 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.
Shinhokoku Material Current Ratio Related Terms
Shinhokoku Material Current Ratio Historical Data
* Premium members only.
The historical data trend for Shinhokoku Material'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.
TSE:5542 vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Shinhokoku Material'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.
Shinhokoku Material Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Shinhokoku Material's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shinhokoku Material'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.
Shinhokoku Material (TSE:5542) has a Current Ratio of 7.50 as of Dec. 2025. This is 18% above median its historical median of 6.37. Over the past decade, Shinhokoku Material's Current Ratio has ranged from 1.92 to 11.88. According to the industry distribution chart, Shinhokoku Material ranks #122 out of 634 companies in the Steel industry, placing it in the top 19.2%.
Is Shinhokoku Material's Current Ratio too high?
Shinhokoku Material's current Current Ratio of 7.50 is 18% above median its 10-year median of 6.37. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 11.88. The Steel industry median Current Ratio is 1.63. Shinhokoku Material's value of 7.50 is 360.1% above this industry median. Based on the distribution chart, Shinhokoku Material ranks #122 out of 634 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Shinhokoku Material has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinhokoku Material's Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Shinhokoku Material ranks #122 out of 634 companies for Current Ratio. This places Shinhokoku Material in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.63. Shinhokoku Material's value of 7.50 is 360.1% above this benchmark. Historically, Shinhokoku Material's own Current Ratio has ranged from 1.92 to 11.88 over the past decade. While the company's 10-year median is 6.37 vs. the industry median of 1.63, Shinhokoku Material 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 Steel company?
The median Current Ratio among Steel companies is 1.63, based on 634 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. Shinhokoku Material's current Current Ratio of 7.50 is 360.1% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinhokoku Material's current Current Ratio is 7.50, which is 18% above median its own 10-year median of 6.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhokoku Material stock overvalued right now?
Based on GuruFocus' analysis, Shinhokoku Material (TSE:5542) is currently considered Significantly Overvalued. The stock's GF Value™ is 円555.76, compared to a current price of 円801.00 — trading 44.1% above its estimated fair value. The current Current Ratio is 7.50, which is 18% above median its 10-year median of 6.37 and 360.1% above the Steel industry median of 1.63. Shinhokoku Material's overall GF Score™ is 74/100 with 3 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 Shinhokoku Material (TSE:5542), the current Current Ratio is 7.50 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 Shinhokoku Material (TSE:5542) Overvalued in 2026?
Based on GuruFocus' analysis, Shinhokoku Material stock appears to be overvalued.
The current stock price of 円801.00 is trading 44.1% above its estimated GF Value™ of 円555.76.
GuruFocus considers Shinhokoku Material to be Significantly Overvalued.
Key valuation signals for TSE:5542:
Current Ratio: 7.50 (18% above median its 10-year median of 6.37)
GF Value™: 円555.76 vs. price of 円801.00 (44.1% above fair value)
Industry Position: 360.1% above the Steel median (#122 of 634)
No single metric tells the full story. See the TSE:5542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinhokoku Material Corp is a Japan-based company that engages in the manufacture and sale of special alloy industrial castings and precision processed products. The company has two business segments, which include the Special alloy business and the Real estate rental business. The company generates the majority of its revenue from the special alloy business segment, which produces parts for semiconductor and FPD manufacturing equipment, tools for manufacturing seamless steel pipes, electrical resistance materials, and special welding rods.
74GF Score
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