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Hongfa Technology CoSHSE:600885 +0.17%94 Debt-to-EBITDA is 0.28 as of Jun. 2026, which is 62% below its 10-year median of 0.74. GuruFocus rates SHSE:600885 with a GF Score™ of 94/100 and a GF Value™ of ¥33.27 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,318 Industrial Products companies, Hongfa Technology Co ranks better than 79.59% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Hongfa Technology Co's Debt-to-EBITDA or its related term are showing as below:
SHSE:600885'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.24 Med: 0.74 Max: 1.09
Current: 0.38
During the past 13 years, the highest Debt-to-EBITDA Ratio of Hongfa Technology Co was 1.09. The lowest was 0.24. And the median was 0.74.
SHSE:600885's Debt-to-EBITDA is ranked better than 79.59% of 2318
companies
in the Industrial Products industry
Industry Median: 1.69
vs SHSE:600885: 0.38
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Hongfa Technology Co Debt-to-EBITDA Related Terms
Hongfa Technology Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Hongfa Technology Co's Debt-to-EBITDA 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 Electrical Equipment & Parts subindustry, Hongfa Technology Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Hongfa Technology Co Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hongfa Technology Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Hongfa Technology Co's Debt-to-EBITDA 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 the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Hongfa Technology Co (SHSE:600885) has a Debt-to-EBITDA of 0.28 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hongfa Technology Co. This is 62% below median its historical median of 0.74. Over the past decade, Hongfa Technology Co's Debt-to-EBITDA has ranged from 0.24 to 1.09. According to the industry distribution chart, Hongfa Technology Co ranks #473 out of 2318 companies in the Industrial Products industry, placing it in the top 20.4%.
Is Hongfa Technology Co's Debt-to-EBITDA too high?
Hongfa Technology Co's current Debt-to-EBITDA of 0.28 is 62% below median its 10-year median of 0.74. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 1.09. The Industrial Products industry median Debt-to-EBITDA is 1.69. Hongfa Technology Co's value of 0.28 is 83.4% below this industry median. Based on the distribution chart, Hongfa Technology Co ranks #473 out of 2318 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hongfa Technology Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hongfa Technology Co's Debt-to-EBITDA compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hongfa Technology Co ranks #473 out of 2318 companies for Debt-to-EBITDA. This places Hongfa Technology Co in the top 20% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.69. Hongfa Technology Co's value of 0.28 is 83.4% below this benchmark. Historically, Hongfa Technology Co's own Debt-to-EBITDA has ranged from 0.24 to 1.09 over the past decade. While the company's 10-year median is 0.74 vs. the industry median of 1.69, Hongfa Technology Co 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 Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.69, based on 2,318 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hongfa Technology Co's current Debt-to-EBITDA of 0.28 is 83.4% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hongfa Technology Co. For the Industrial Products industry, the median Debt-to-EBITDA is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongfa Technology Co's current Debt-to-EBITDA is 0.28, which is 62% below median its own 10-year median of 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongfa Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongfa Technology Co (SHSE:600885) is currently considered Fairly Valued. The stock's GF Value™ is ¥33.27, compared to a current price of ¥34.65 — trading 4.1% above its estimated fair value. The current Debt-to-EBITDA is 0.28, which is 62% below median its 10-year median of 0.74 and 83.4% below the Industrial Products industry median of 1.69. Hongfa Technology Co's overall GF Score™ is 94/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Hongfa Technology Co (SHSE:600885), the current Debt-to-EBITDA is 0.28 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.
Is Hongfa Technology Co (SHSE:600885) Overvalued in 2026?
Based on GuruFocus' analysis, Hongfa Technology Co stock appears to be overvalued.
The current stock price of ¥34.65 is trading 4.1% above its estimated GF Value™ of ¥33.27.
GuruFocus considers Hongfa Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600885:
Debt-to-EBITDA: 0.28 (62% below median its 10-year median of 0.74)
GF Value™: ¥33.27 vs. price of ¥34.65 (4.1% above fair value)
Industry Position: 83.4% below the Industrial Products median (#473 of 2318)
No single metric tells the full story. See the SHSE:600885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongfa Technology Co Ltd is engaged in Research, manufacture and selling relays, low voltage electrical appliances, contactors, automation equipment and related electronic components and assemblies, electromechanical products, mechanical equipment.
94GF Score
Get the complete analysis for SHSE:600885
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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