Hebei Yichen Industrial Group (FRA:HE2) Interest Coverage: 35.26 (As of Dec. 2025) — 138% Above Median

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FRA:HE2 Hebei Yichen Industrial Group Corp Ltd FRA:HE2
70 GF Score
Price €0.03
GF Value €0.45
Valuation Possible Value Trap
! 3 Warning Signs
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What is Hebei Yichen Industrial Group Interest Coverage?

Hebei Yichen Industrial Group FRA:HE2 -4.17% 70 Interest Coverage is 35.26 as of Dec. 2025, which is 138% above its 10-year median of 14.81. GuruFocus rates FRA:HE2 with a GF Score™ of 70/100 and a GF Value™ of €0.45 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 842 Transportation companies, Hebei Yichen Industrial Group ranks better than 79.81% 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. Hebei Yichen Industrial Group's Operating Income for the six months ended in Dec. 2025 was €40.5 Mil. Hebei Yichen Industrial Group's Interest Expense for the six months ended in Dec. 2025 was €-1.2 Mil. Hebei Yichen Industrial Group's interest coverage for the quarter that ended in Dec. 2025 was 35.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hebei Yichen Industrial Group's Interest Coverage or its related term are showing as below:

FRA:HE2' s Interest Coverage Range Over the Past 10 Years
Min: 5.71   Med: 14.81   Max: 27.19
Current: 21.47


FRA:HE2's Interest Coverage is ranked better than
79.81% of 842 companies
in the Transportation industry
Industry Median: 5.7 vs FRA:HE2: 21.47

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


Hebei Yichen Industrial Group  (FRA:HE2) 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 .


Hebei Yichen Industrial Group Interest Coverage Related Terms


Hebei Yichen Industrial Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hebei Yichen Industrial Group'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.

Hebei Yichen Industrial Group Interest Coverage Chart

Hebei Yichen Industrial Group 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 16.40 7.13 7.33 5.71 21.40

Hebei Yichen Industrial Group 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 9.81 3.36 8.10 6.12 35.26

FRA:HE2 vs UNP, CSX, NSC: Interest Coverage Comparison

For the Railroads subindustry, Hebei Yichen Industrial Group'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.


Hebei Yichen Industrial Group Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, Hebei Yichen Industrial Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hebei Yichen Industrial Group's Interest Coverage falls into.


FRA:HE2
70GF Score
Hebei Yichen Industrial Group Corp Ltd FRA:HE2
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hebei Yichen Industrial Group 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.

Hebei Yichen Industrial Group'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, Hebei Yichen Industrial Group's Interest Expense was €-2.2 Mil. Its Operating Income was €46.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €42.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*46.926/-2.193
=21.40

Hebei Yichen Industrial Group's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hebei Yichen Industrial Group's Interest Expense was €-1.2 Mil. Its Operating Income was €40.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €42.7 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*40.544/-1.15
=35.26

* 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 35.26 mean?
Hebei Yichen Industrial Group (FRA:HE2) has a Interest Coverage of 35.26 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hebei Yichen Industrial Group and its competitors. This is 138% above median its historical median of 14.81. Over the past decade, Hebei Yichen Industrial Group's Interest Coverage has ranged from 5.71 to 27.19. According to the industry distribution chart, Hebei Yichen Industrial Group ranks #170 out of 842 companies in the Transportation industry, placing it in the top 20.2%.
Is Hebei Yichen Industrial Group's Interest Coverage too high?
Hebei Yichen Industrial Group's current Interest Coverage of 35.26 is 138% above median its 10-year median of 14.81. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 27.19. The Transportation industry median Interest Coverage is 5.70. Hebei Yichen Industrial Group's value of 35.26 is 518.6% above this industry median. Based on the distribution chart, Hebei Yichen Industrial Group ranks #170 out of 842 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Hebei Yichen Industrial Group has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hebei Yichen Industrial Group's Interest Coverage compare to UNP and CSX?
According to the Transportation industry distribution chart, Hebei Yichen Industrial Group ranks #170 out of 842 companies for Interest Coverage. This places Hebei Yichen Industrial Group in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.70. Hebei Yichen Industrial Group's value of 35.26 is 518.6% above this benchmark. Historically, Hebei Yichen Industrial Group's own Interest Coverage has ranged from 5.71 to 27.19 over the past decade. While the company's 10-year median is 14.81 vs. the industry median of 5.70, Hebei Yichen Industrial Group 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 Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.70, based on 842 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. Hebei Yichen Industrial Group's current Interest Coverage of 35.26 is 518.6% 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 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 Hebei Yichen Industrial Group and its competitors. For the Transportation industry, the median Interest Coverage is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hebei Yichen Industrial Group's current Interest Coverage is 35.26, which is 138% above median its own 10-year median of 14.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hebei Yichen Industrial Group stock overvalued right now?
Based on GuruFocus' analysis, Hebei Yichen Industrial Group (FRA:HE2) is currently considered Possible Value Trap. The stock's GF Value™ is €0.45, compared to a current price of €0.03 — trading 92.3% below its estimated fair value. The current Interest Coverage is 35.26, which is 138% above median its 10-year median of 14.81 and 518.6% above the Transportation industry median of 5.70. Hebei Yichen Industrial Group's overall GF Score™ is 70/100 with 3 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 Hebei Yichen Industrial Group (FRA:HE2), the current Interest Coverage is 35.26 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 Hebei Yichen Industrial Group (FRA:HE2) Overvalued in 2026?

Based on GuruFocus' analysis, Hebei Yichen Industrial Group stock appears to be undervalued. The current stock price of €0.03 is trading 92.3% below its estimated GF Value™ of €0.45. GuruFocus considers Hebei Yichen Industrial Group to be Possible Value Trap.

Key valuation signals for FRA:HE2:

  • Interest Coverage: 35.26 (138% above median its 10-year median of 14.81)
  • GF Value™: €0.45 vs. price of €0.03 (92.3% below fair value)
  • GF Score™: 70/100 with 3 warning signs
  • Industry Position: 518.6% above the Transportation median (#170 of 842)

No single metric tells the full story. See the FRA:HE2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hebei Yichen Industrial Group Business Description

Other Exchanges 01596:Hong Kong
Address No. 1 Yichen North Street, Gaocheng District, Hebei Province, Shijiazhuang, CHN
Hebei Yichen Industrial Group Corp Ltd is engaged in research and development, manufacturing and sales of rail fastening system products, welding wire products and railway sleeper products. Its products include Spring bar IV fastening system, Spring bar V fastening system, WJ-7 fastening system, DT-VI2 fastening system, WJ-2 fastening system, Double layer non-linear shock absorber fastening system, among others. It operates in three business segments, including rail fastening system products; welding wire products; and railway sleeper products.
70GF Score

Get the complete analysis for FRA:HE2

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

€0.03
Price
€0.45
GF Value