Honghua GroupSTU:4HB +7.14%36 Quick Ratio is 1.04 as of Dec. 2025, which is 5% above its 10-year median of 0.99. GuruFocus rates STU:4HB with a GF Score™ of 36/100 and a GF Value™ of €0.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,014 Oil & Gas companies, Honghua Group ranks worse than 53.35% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Honghua Group's quick ratio for the quarter that ended in Dec. 2025 was 1.04.
Honghua Group has a quick ratio of 1.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for Honghua Group's Quick Ratio or its related term are showing as below:
STU:4HB'
s Quick Ratio Range Over the Past 10 Years
Min: 0.65 Med: 0.99 Max: 1.5
Current: 1.04
During the past 13 years, Honghua Group's highest Quick Ratio was 1.50. The lowest was 0.65. And the median was 0.99.
STU:4HB's Quick Ratio is ranked worse than 53.35% of 1014
companies
in the Oil & Gas industry
Industry Median: 1.12
vs STU:4HB: 1.04
Honghua Group (STU:4HB) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Honghua Group Quick Ratio Related Terms
Honghua Group Quick Ratio Historical Data
* Premium members only.
The historical data trend for Honghua Group's Quick 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.
For the Oil & Gas Equipment & Services subindustry, Honghua Group's Quick Ratio, along with its competitors' market caps and Quick 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.
Honghua Group Quick Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Honghua Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Honghua Group's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Honghua Group's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Honghua Group (STU:4HB) has a Quick Ratio of 1.04 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Honghua Group and its competitors. This is near median its historical median of 0.99. Over the past decade, Honghua Group's Quick Ratio has ranged from 0.65 to 1.50. According to the industry distribution chart, Honghua Group ranks #541 out of 1014 companies in the Oil & Gas industry, placing it in the top 53.4%.
Is Honghua Group's Quick Ratio too high?
Honghua Group's current Quick Ratio of 1.04 is near median its 10-year median of 0.99. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 1.50. The Oil & Gas industry median Quick Ratio is 1.12. Honghua Group's value of 1.04 is 7.1% below this industry median. Based on the distribution chart, Honghua Group ranks #541 out of 1014 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Honghua Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Quick Ratio compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Honghua Group ranks #541 out of 1014 companies for Quick Ratio. This places Honghua Group in the lower half of its industry. The industry median Quick Ratio is 1.12. Honghua Group's value of 1.04 is 7.1% below this benchmark. Historically, Honghua Group's own Quick Ratio has ranged from 0.65 to 1.50 over the past decade. While the company's 10-year median is 0.99 vs. the industry median of 1.12, Honghua Group 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 Quick Ratio for an Oil & Gas company?
The median Quick Ratio among Oil & Gas companies is 1.12, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honghua Group's current Quick Ratio of 1.04 is 7.1% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Honghua Group and its competitors. For the Oil & Gas industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honghua Group's current Quick Ratio is 1.04, which is near median its own 10-year median of 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Based on GuruFocus' analysis, Honghua Group (STU:4HB) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 50% above its estimated fair value. The current Quick Ratio is 1.04, which is near median its 10-year median of 0.99 and 7.1% below the Oil & Gas industry median of 1.12. Honghua Group's overall GF Score™ is 36/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Honghua Group (STU:4HB), the current Quick Ratio is 1.04 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 Honghua Group (STU:4HB) Overvalued in 2026?
Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued.
The current stock price of €0.02 is trading 50% above its estimated GF Value™ of €0.01.
GuruFocus considers Honghua Group to be Significantly Overvalued.
Key valuation signals for STU:4HB:
Quick Ratio: 1.04 (near median its 10-year median of 0.99)
GF Value™: €0.01 vs. price of €0.02 (50% above fair value)
Industry Position: 7.1% below the Oil & Gas median (#541 of 1014)
No single metric tells the full story. See the STU:4HB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
36GF Score
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