Hilong Holding (FRA:8HL) Interest Coverage: 1.71 (As of Dec. 2025) — 16% Above Median

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FRA:8HL Hilong Holding Ltd FRA:8HL
55 GF Score
Price €0.02
GF Value €0.02
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Hilong Holding Interest Coverage?

Hilong Holding FRA:8HL 55 Interest Coverage is 1.71 as of Dec. 2025, which is 16% above its 10-year median of 1.47. GuruFocus rates FRA:8HL with a GF Score™ of 55/100 and a GF Value™ of €0.02 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 730 Oil & Gas companies, Hilong Holding ranks worse than 88.9% on this metric.

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. Hilong Holding's Operating Income for the six months ended in Dec. 2025 was €24.8 Mil. Hilong Holding's Interest Expense for the six months ended in Dec. 2025 was €-14.5 Mil. Hilong Holding's interest coverage for the quarter that ended in Dec. 2025 was 1.71. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hilong Holding's Interest Coverage or its related term are showing as below:

FRA:8HL' s Interest Coverage Range Over the Past 10 Years
Min: 0.67   Med: 1.47   Max: 2.33
Current: 1.33


FRA:8HL's Interest Coverage is ranked worse than
88.9% of 730 companies
in the Oil & Gas industry
Industry Median: 5.89 vs FRA:8HL: 1.33

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Hilong Holding  (FRA:8HL) 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 .


Hilong Holding Interest Coverage Related Terms


Hilong Holding Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hilong Holding's Interest Coverage 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.

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.

Hilong Holding Interest Coverage Chart

Hilong Holding Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.36 0.87 1.29 1.69 1.33

Hilong Holding Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.86 2.16 1.21 0.96 1.71

FRA:8HL vs SLB, BKR, HAL: Interest Coverage Comparison

For the Oil & Gas Equipment & Services subindustry, Hilong Holding'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.


Hilong Holding Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hilong Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hilong Holding's Interest Coverage falls into.


FRA:8HL
55GF Score
Hilong Holding Ltd FRA:8HL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hilong Holding 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hilong Holding's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Hilong Holding's Interest Expense was €-28.9 Mil. Its Operating Income was €38.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €1.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*38.494/-28.883
=1.33

Hilong Holding's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hilong Holding's Interest Expense was €-14.5 Mil. Its Operating Income was €24.8 Mil. And its Long-Term Debt & Capital Lease Obligation was €1.8 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*24.785/-14.534
=1.71

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.71 mean?
Hilong Holding (FRA:8HL) has a Interest Coverage of 1.71 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hilong Holding and its competitors. This is 16% above median its historical median of 1.47. Over the past decade, Hilong Holding's Interest Coverage has ranged from 0.67 to 2.33. According to the industry distribution chart, Hilong Holding ranks #649 out of 730 companies in the Oil & Gas industry, placing it in the top 88.9%.
Is Hilong Holding's Interest Coverage too high?
Hilong Holding's current Interest Coverage of 1.71 is 16% above median its 10-year median of 1.47. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 2.33. The Oil & Gas industry median Interest Coverage is 5.89. Hilong Holding's value of 1.71 is 71% below this industry median. Based on the distribution chart, Hilong Holding ranks #649 out of 730 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Hilong Holding has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hilong Holding's Interest Coverage compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Hilong Holding ranks #649 out of 730 companies for Interest Coverage. This places Hilong Holding in the lower half of its industry. The industry median Interest Coverage is 5.89. Hilong Holding's value of 1.71 is 71% below this benchmark. Historically, Hilong Holding's own Interest Coverage has ranged from 0.67 to 2.33 over the past decade. While the company's 10-year median is 1.47 vs. the industry median of 5.89, Hilong Holding 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 Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 730 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. Hilong Holding's current Interest Coverage of 1.71 is 71% 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 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 Hilong Holding and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hilong Holding's current Interest Coverage is 1.71, which is 16% above median its own 10-year median of 1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hilong Holding stock overvalued right now?
Based on GuruFocus' analysis, Hilong Holding (FRA:8HL) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.02, compared to a current price of €0.02 — trading 15% above its estimated fair value. The current Interest Coverage is 1.71, which is 16% above median its 10-year median of 1.47 and 71% below the Oil & Gas industry median of 5.89. Hilong Holding's overall GF Score™ is 55/100 with 4 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 Hilong Holding (FRA:8HL), the current Interest Coverage is 1.71 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 Hilong Holding (FRA:8HL) Overvalued in 2026?

Based on GuruFocus' analysis, Hilong Holding stock appears to be overvalued. The current stock price of €0.02 is trading 15% above its estimated GF Value™ of €0.02. GuruFocus considers Hilong Holding to be Modestly Overvalued.

Key valuation signals for FRA:8HL:

  • Interest Coverage: 1.71 (16% above median its 10-year median of 1.47)
  • GF Value™: €0.02 vs. price of €0.02 (15% above fair value)
  • GF Score™: 55/100 with 4 warning signs
  • Industry Position: 71% below the Oil & Gas median (#649 of 730)

No single metric tells the full story. See the FRA:8HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hilong Holding Business Description

Industry EnergyOil & Gas
Other Exchanges HLONF:USA01623:Hong Kong
Address No. 1825, Luodong Road, Baoshan Industrial Zone, Shanghai, CHN, 200949
Hilong Holding Ltd is an integrated oil field equipment and services provider and is principally engaged in manufacturing and distribution of oil and gas drilling equipment, and provision of oilfield and offshore engineering services. Its principal activity is investment holding. Its segments include Oilfield equipment manufacturing and services provision, including the production of oilfield equipment; Oilfield services provision, including the provision of well drilling services, integrated comprehensive services, oil country tubular goods trading and related services to oil and gas producers; and Offshore engineering services provision, including the provision of offshore engineering services and offshore design services. It derives majority of the revenue from Oilfield services.
55GF Score

Get the complete analysis for FRA:8HL

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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