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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Cathay Financial Holding Co's Debt-to-Equity or its related term are showing as below:
LSE:CFHS'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.18 Med: 0.27 Max: 0.48
Current: 0.48
During the past 13 years, the highest Debt-to-Equity Ratio of Cathay Financial Holding Co was 0.48. The lowest was 0.18. And the median was 0.27.
LSE:CFHS's Debt-to-Equity is ranked worse than 77.97% of 404
companies
in the Insurance industry
Industry Median: 0.2
vs LSE:CFHS: 0.48
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Cathay Financial Holding Co Debt-to-Equity Related Terms
Cathay Financial Holding Co Debt-to-Equity 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.
LSE:CFHS vs AFL, MET, PRU: Debt-to-Equity Comparison
For the Insurance - Life subindustry, Cathay Financial Holding Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
Cathay Financial Holding Co Debt-to-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding Co's Debt-to-Equity 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.
Cathay Financial Holding Co (LSE:CFHS) has a Debt-to-Equity of 0.48 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cathay Financial Holding Co and its competitors. This is 78% above median its historical median of 0.27. Over the past decade, Cathay Financial Holding Co's Debt-to-Equity has ranged from 0.18 to 0.48. According to the industry distribution chart, Cathay Financial Holding Co ranks #315 out of 404 companies in the Insurance industry, placing it in the top 78%.
Is Cathay Financial Holding Co's Debt-to-Equity too high?
Cathay Financial Holding Co's current Debt-to-Equity of 0.48 is 78% above median its 10-year median of 0.27. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 0.48. The Insurance industry median Debt-to-Equity is 0.20. Cathay Financial Holding Co's value of 0.48 is 140% above this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #315 out of 404 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Cathay Financial Holding Co has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Debt-to-Equity compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #315 out of 404 companies for Debt-to-Equity. This places Cathay Financial Holding Co in the lower half of its industry. The industry median Debt-to-Equity is 0.20. Cathay Financial Holding Co's value of 0.48 is 140% above this benchmark. Historically, Cathay Financial Holding Co's own Debt-to-Equity has ranged from 0.18 to 0.48 over the past decade. While the company's 10-year median is 0.27 vs. the industry median of 0.20, Cathay Financial Holding Co 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 Debt-to-Equity for an Insurance company?
The median Debt-to-Equity among Insurance companies is 0.20, based on 404 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Financial Holding Co's current Debt-to-Equity of 0.48 is 140% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Debt-to-Equity is 0.48, which is 78% above median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Debt-to-Equity of 0.48. The stock's GF Value™ is $15.01, compared to a current price of $19.20 — trading 27.9% above its estimated fair value. The current Debt-to-Equity is 0.48, which is 78% above median its 10-year median of 0.27 and 140% above the Insurance industry median of 0.20. Cathay Financial Holding Co's overall GF Score™ is 49/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Cathay Financial Holding Co (LSE:CFHS), the current Debt-to-Equity is 0.48 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 27.9% above its estimated GF Value™ of $15.01.
Key valuation signals for LSE:CFHS:
Debt-to-Equity: 0.48 (78% above median its 10-year median of 0.27)
GF Value™: $15.01 vs. price of $19.20 (27.9% above fair value)
Industry Position: 140% above the Insurance median (#315 of 404)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
49GF Score
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Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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