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China Railway SignalmmunicationFRA:RS3 +1.16%56 Interest Coverage is 87.74 as of Dec. 2025, which is 56% above its 10-year median of 56.41. GuruFocus rates FRA:RS3 with a GF Score™ of 56/100 and a GF Value™ of €0.38 (Fairly Valued). The stock has 3 warning signs investors should review. Among 841 Transportation companies, China Railway Signalmmunication ranks better than 88.59% 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. China Railway Signalmmunication's
Operating Income
for the
three
months ended in Dec. 2025 was €212 Mil. China Railway Signalmmunication's Interest Expense for the
three
months ended in Dec. 2025 was €-2 Mil.
China Railway Signalmmunication's interest coverage for the quarter that ended in Dec. 2025 was 87.74.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China Railway Signal & Communication Corp Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for China Railway Signalmmunication's Interest Coverage or its related term are showing as below:
FRA:RS3'
s Interest Coverage Range Over the Past 10 Years
Min: 32.44 Med: 56.41 Max: 117.98
Current: 51.46
FRA:RS3's Interest Coverage is ranked better than 88.59% of 841
companies
in the Transportation industry
Industry Median: 5.68
vs FRA:RS3: 51.46
China Railway Signalmmunication (FRA:RS3) 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 Railway Signalmmunication Interest Coverage Related Terms
China Railway Signalmmunication 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 Railway Signalmmunication Interest Coverage Chart
FRA:RS3 vs UNP, CSX, NSC: Interest Coverage Comparison
For the Railroads subindustry, China Railway Signalmmunication'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 Railway Signalmmunication Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, China Railway Signalmmunication's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Railway Signalmmunication's Interest Coverage falls into.
China Railway Signalmmunication 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:
* 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.
China Railway Signalmmunication (FRA:RS3) has a Interest Coverage of 87.74 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Railway Signalmmunication and its competitors. This is 56% above median its historical median of 56.41. Over the past decade, China Railway Signalmmunication's Interest Coverage has ranged from 32.44 to 117.98. According to the industry distribution chart, China Railway Signalmmunication ranks #96 out of 841 companies in the Transportation industry, placing it in the top 11.4%.
Is China Railway Signalmmunication's Interest Coverage too high?
China Railway Signalmmunication's current Interest Coverage of 87.74 is 56% above median its 10-year median of 56.41. Over the past 10 years, this metric has ranged from a low of 32.44 to a high of 117.98. The Transportation industry median Interest Coverage is 5.68. China Railway Signalmmunication's value of 87.74 is 1444.7% above this industry median. Based on the distribution chart, China Railway Signalmmunication ranks #96 out of 841 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, China Railway Signalmmunication has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Railway Signalmmunication's Interest Coverage compare to UNP and CSX?
According to the Transportation industry distribution chart, China Railway Signalmmunication ranks #96 out of 841 companies for Interest Coverage. This places China Railway Signalmmunication in the top 11% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.68. China Railway Signalmmunication's value of 87.74 is 1444.7% above this benchmark. Historically, China Railway Signalmmunication's own Interest Coverage has ranged from 32.44 to 117.98 over the past decade. While the company's 10-year median is 56.41 vs. the industry median of 5.68, China Railway Signalmmunication 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 5.68, based on 841 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. China Railway Signalmmunication's current Interest Coverage of 87.74 is 1444.7% 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 China Railway Signalmmunication and its competitors. For the Transportation industry, the median Interest Coverage is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Signalmmunication's current Interest Coverage is 87.74, which is 56% above median its own 10-year median of 56.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Signalmmunication stock overvalued right now?
Based on GuruFocus' analysis, China Railway Signalmmunication (FRA:RS3) is currently considered Fairly Valued. The stock's GF Value™ is €0.38, compared to a current price of €0.35 — trading 8.9% below its estimated fair value. The current Interest Coverage is 87.74, which is 56% above median its 10-year median of 56.41 and 1444.7% above the Transportation industry median of 5.68. China Railway Signalmmunication's overall GF Score™ is 56/100 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 China Railway Signalmmunication (FRA:RS3), the current Interest Coverage is 87.74 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 Railway Signalmmunication (FRA:RS3) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Signalmmunication stock appears to be undervalued.
The current stock price of €0.35 is trading 8.9% below its estimated GF Value™ of €0.38.
GuruFocus considers China Railway Signalmmunication to be Fairly Valued.
Key valuation signals for FRA:RS3:
Interest Coverage: 87.74 (56% above median its 10-year median of 56.41)
GF Value™: €0.38 vs. price of €0.35 (8.9% below fair value)
Industry Position: 1444.7% above the Transportation median (#96 of 841)
No single metric tells the full story. See the FRA:RS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Signalmmunication Business Description
China Railway Signal & Communication Corp Ltd provides products and services on the entire industrial chain of rail transit control systems. The company's operating segments are the Rail transportation control system segment, which provides specialized three-in-one services of design and integration, equipment manufacturing, and system implementation services for rail transportation control systems; the General engineering contracting segment engages in the provision of services relating to municipal and other construction projects; and other segments mainly engage in trading. The firm generates a majority of its revenue from the Rail transportation control system segment.
56GF Score
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