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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
by its Interest Expense. China Modern Dairy Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was €-5 Mil. China Modern Dairy Holdings's Interest Expense for the
six
months ended in Dec. 2025 was €-119 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China Modern Dairy Holdings's Interest Coverage or its related term are showing as below:
FRA:07M's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.61 * Ranked among companies with meaningful Interest Coverage only.
China Modern Dairy Holdings (FRA:07M) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
China Modern Dairy Holdings Interest Coverage Related Terms
China Modern Dairy Holdings Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
China Modern Dairy Holdings Interest Coverage Chart
FRA:07M vs ADM, BG, TSN: Interest Coverage Comparison
For the Farm Products subindustry, China Modern Dairy Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
China Modern Dairy Holdings Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Modern Dairy Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Modern Dairy Holdings's Interest Coverage falls into.
China Modern Dairy Holdings Interest Coverage Calculation
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:
China Modern Dairy Holdings did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
China Modern Dairy Holdings (FRA:07M) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Modern Dairy Holdings and its competitors. According to the industry distribution chart, China Modern Dairy Holdings ranks #999999 out of 1503 companies in the Consumer Packaged Goods industry.
Is China Modern Dairy Holdings' Interest Coverage too high?
China Modern Dairy Holdings' current Interest Coverage is 0 (At Loss). Based on the distribution chart, China Modern Dairy Holdings ranks #999999 out of 1503 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, China Modern Dairy Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Modern Dairy Holdings' Interest Coverage compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, China Modern Dairy Holdings ranks #999999 out of 1503 companies for Interest Coverage. This places China Modern Dairy Holdings in the lower half of its industry. The industry median Interest Coverage is 8.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.61, based on 1,503 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Modern Dairy Holdings and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Modern Dairy Holdings's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Modern Dairy Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Modern Dairy Holdings (FRA:07M) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.10, compared to a current price of €0.16 — trading 55% above its estimated fair value. The current Interest Coverage is 0 (At Loss). China Modern Dairy Holdings' overall GF Score™ is 60/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China Modern Dairy Holdings (FRA:07M), the current Interest Coverage is 0 (At Loss) 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 China Modern Dairy Holdings (FRA:07M) Overvalued in 2026?
Based on GuruFocus' analysis, China Modern Dairy Holdings stock appears to be overvalued.
The current stock price of €0.16 is trading 55% above its estimated GF Value™ of €0.10.
GuruFocus considers China Modern Dairy Holdings to be Significantly Overvalued.
Key valuation signals for FRA:07M:
Interest Coverage: 0 (At Loss)
GF Value™: €0.10 vs. price of €0.16 (55% above fair value)
No single metric tells the full story. See the FRA:07M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Modern Dairy Holdings Ltd operates in the Chinese food industry. The business of the company includes the production of raw milk, and its revenue mainly depends on the sale of raw milk. The company produces and sells raw milk to customers for processing into dairy products, Liquid Milk, ice cream, formula milk and other dairy products business, which relates to its sale of liquid milk products. It also engaged in new business areas such as feed business, intelligent e-commerce platforms, and forage grass planting. The segments of the company are the Raw milk business and the integrated dairy farming solutions business. The company generates the majority of its revenue from the Raw milk business that engages in raising and breeding dairy cows to produce and sell raw milk.
60GF Score
Get the complete analysis for FRA:07M
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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