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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
USA Rare Earth has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
USA Rare Earth Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
USA Rare Earth did not have earnings to cover the interest expense.
USA Rare Earth's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.14.
As of today, USA Rare Earth's Altman Z-Score is 5.07.
USA Rare Earth (NAS:USAR) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
USA Rare Earth has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
USA Rare Earth Financial Strength Related Terms
USAR vs MTRN, ALM, SSMR: Financial Strength Comparison
For the Other Industrial Metals & Mining subindustry, USA Rare Earth's Financial Strength, along with its competitors' market caps and Financial Strength 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.
USA Rare Earth Financial Strength vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, USA Rare Earth's Financial Strength distribution charts can be found below:
* The bar in red indicates where USA Rare Earth's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
USA Rare Earth has a Z-score of 5.07, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 5.07 is strong.
* 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.
USA Rare Earth (USAR) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on USA Rare Earth and its competitors. This is 33% above median its historical median of 6.00. Over the past decade, USA Rare Earth's Financial Strength has ranged from 5.00 to 9.00.
Is USA Rare Earth's Financial Strength too high?
USA Rare Earth's current Financial Strength of 8 is 33% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 9.00. Overall, USA Rare Earth has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does USA Rare Earth's Financial Strength compare to MTRN and ALM?
USA Rare Earth's Financial Strength of 8 can be compared against companies in the Metals & Mining industry. Historically, USA Rare Earth's own Financial Strength has ranged from 5.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Metals & Mining company?
A good Financial Strength depends on the Metals & Mining industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on USA Rare Earth and its competitors. USA Rare Earth's current Financial Strength is 8, which is 33% above median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is USA Rare Earth stock overvalued right now?
USA Rare Earth (USAR) has a current Financial Strength of 8. The current Financial Strength is 8, which is 33% above median its 10-year median of 6.00. USA Rare Earth's overall GF Score™ is 14/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For USA Rare Earth (USAR), the current Financial Strength is 8 as of Jun. 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.
USA Rare Earth Inc is a vertically integrated, domestic rare earth magnet supply chain that supports the state of energy, mobility, and national security in the United States. USARE is developing an NdFeB magnet manufacturing plant in the United States, and establishing domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its manufacturing plant and market surplus materials to third parties. The company operates in a single reportable operating segment; that segment being the vertically integrated, domestic rare earth element magnet production supply chain. Geographically, it operates in United States, and International. It derives maximum revenue from International.
14GF Score
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