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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
FRA:RC0's Price-to-Net-Net-Working-Capital is not ranked *
in the Building Materials industry.
Industry Median: 7.105 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Huaxin Building Materials Group Co (FRA:RC0) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Huaxin Building Materials Group Co Net-Net Working Capital Related Terms
Huaxin Building Materials Group Co Net-Net Working Capital 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.
Huaxin Building Materials Group Co Net-Net Working Capital Chart
FRA:RC0 vs CRH, VMC, MLM: Net-Net Working Capital Comparison
For the Building Materials subindustry, Huaxin Building Materials Group Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Huaxin Building Materials Group Co Price-to-Net-Net-Working-Capital vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Huaxin Building Materials Group Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Huaxin Building Materials Group Co's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of €-2.15 mean?
Huaxin Building Materials Group Co (FRA:RC0) has a Net-Net Working Capital of €-2.15 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Huaxin Building Materials Group Co According to the industry distribution chart, Huaxin Building Materials Group Co ranks #999999 out of 104 companies in the Building Materials industry.
Is Huaxin Building Materials Group Co's Net-Net Working Capital too high?
Huaxin Building Materials Group Co's current Net-Net Working Capital is €-2.15. Based on the distribution chart, Huaxin Building Materials Group Co ranks #999999 out of 104 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Huaxin Building Materials Group Co has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Huaxin Building Materials Group Co's Net-Net Working Capital compare to CRH and VMC?
According to the Building Materials industry distribution chart, Huaxin Building Materials Group Co ranks #999999 out of 104 companies for Net-Net Working Capital. This places Huaxin Building Materials Group Co in the lower half of its industry. The industry median Net-Net Working Capital is 7.11. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Building Materials company?
The median Net-Net Working Capital among Building Materials companies is 7.11, based on 104 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Huaxin Building Materials Group Co For the Building Materials industry, the median Net-Net Working Capital is 7.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huaxin Building Materials Group Co's current Net-Net Working Capital is €-2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huaxin Building Materials Group Co stock overvalued right now?
Huaxin Building Materials Group Co (FRA:RC0) has a current Net-Net Working Capital of €-2.15. The stock's GF Value™ is €1.05, compared to a current price of €1.53 — trading 45.7% above its estimated fair value. The current Net-Net Working Capital is €-2.15. Huaxin Building Materials Group Co's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Huaxin Building Materials Group Co (FRA:RC0), the current Net-Net Working Capital is €-2.15 as of Mar. 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 Huaxin Building Materials Group Co (FRA:RC0) Overvalued in 2026?
Based on GuruFocus' analysis, Huaxin Building Materials Group Co stock appears to be overvalued.
The current stock price of €1.53 is trading 45.7% above its estimated GF Value™ of €1.05.
Key valuation signals for FRA:RC0:
Net-Net Working Capital: €-2.15
GF Value™: €1.05 vs. price of €1.53 (45.7% above fair value)
No single metric tells the full story. See the FRA:RC0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huaxin Building Materials Group Co Ltd is engaged in the manufacture and sale of cement, concrete, clinker, aggregates, and other building materials. Its business is divided into segments, with the Domestic segment generating the majority of revenue and covering the production and sale of cement, concrete, aggregates, clinker, and other construction materials within China. The Overseas segment includes similar activities outside China, focusing on the production and sale of these building materials in international markets.
77GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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