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. Guotai Junan International Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was $290.2 Mil. Guotai Junan International Holdings's Interest Expense for the
six
months ended in Dec. 2025 was $-143.6 Mil.
Guotai Junan International Holdings's interest coverage for the quarter that ended in Dec. 2025 was 2.02.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Guotai Junan International Holdings Ltd interest coverage is 1.82, which is low.
Guotai Junan International Holdings (OTCPK:GUOTF) 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 .
Guotai Junan International Holdings Interest Coverage Related Terms
Guotai Junan International 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.
Guotai Junan International Holdings Interest Coverage Chart
GUOTF vs MS, GS, SCHW: Interest Coverage Comparison
For the Capital Markets subindustry, Guotai Junan International 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.
Guotai Junan International Holdings Interest Coverage vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guotai Junan International Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Guotai Junan International Holdings's Interest Coverage falls into.
Guotai Junan International 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:
* 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.
Guotai Junan International Holdings (GUOTF) has a Interest Coverage of 2.02 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Guotai Junan International Holdings and its competitors. This is 13% below median its historical median of 2.31. Over the past decade, Guotai Junan International Holdings' Interest Coverage has ranged from 1.23 to 5.18. According to the industry distribution chart, Guotai Junan International Holdings ranks #355 out of 427 companies in the Capital Markets industry, placing it in the top 83.1%.
Is Guotai Junan International Holdings' Interest Coverage too high?
Guotai Junan International Holdings' current Interest Coverage of 2.02 is 13% below median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 5.18. The Capital Markets industry median Interest Coverage is 19.12. Guotai Junan International Holdings' value of 2.02 is 89.4% below this industry median. Based on the distribution chart, Guotai Junan International Holdings ranks #355 out of 427 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, Guotai Junan International Holdings has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Guotai Junan International Holdings' Interest Coverage compare to MS and GS?
According to the Capital Markets industry distribution chart, Guotai Junan International Holdings ranks #355 out of 427 companies for Interest Coverage. This places Guotai Junan International Holdings in the lower half of its industry. The industry median Interest Coverage is 19.12. Guotai Junan International Holdings' value of 2.02 is 89.4% below this benchmark. Historically, Guotai Junan International Holdings' own Interest Coverage has ranged from 1.23 to 5.18 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 19.12, Guotai Junan International Holdings 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 a Capital Markets company?
The median Interest Coverage among Capital Markets companies is 19.12, based on 427 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. Guotai Junan International Holdings's current Interest Coverage of 2.02 is 89.4% 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 Guotai Junan International Holdings and its competitors. For the Capital Markets industry, the median Interest Coverage is 19.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guotai Junan International Holdings's current Interest Coverage is 2.02, which is 13% below median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Junan International Holdings stock overvalued right now?
Guotai Junan International Holdings (GUOTF) has a current Interest Coverage of 2.02. The stock's GF Value™ is $0.31, compared to a current price of $0.33 — trading 6.5% above its estimated fair value. The current Interest Coverage is 2.02, which is 13% below median its 10-year median of 2.31 and 89.4% below the Capital Markets industry median of 19.12. Guotai Junan International Holdings' overall GF Score™ is 78/100 with 8 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 Guotai Junan International Holdings (GUOTF), the current Interest Coverage is 2.02 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 Guotai Junan International Holdings (GUOTF) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Junan International Holdings stock appears to be overvalued.
The current stock price of $0.33 is trading 6.5% above its estimated GF Value™ of $0.31.
Key valuation signals for GUOTF:
Interest Coverage: 2.02 (13% below median its 10-year median of 2.31)
GF Value™: $0.31 vs. price of $0.33 (6.5% above fair value)
Industry Position: 89.4% below the Capital Markets median (#355 of 427)
No single metric tells the full story. See the GUOTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Junan International Holdings Business Description
Guotai Junan International Holdings Ltd is an investment holding company engaged in a range of financial services. Its operating segments comprise Wealth Management, which provides brokerage, margin financing, and related services to individuals, SMEs, and family offices; Institutional Investor Services, which include market making, structured products, and financing solutions for corporations and financial institutions; Corporate Finance Services, which offer advisory, placing, and underwriting services for debt and equity securities; Investment Management, which provides asset and fund management along with investments in financial instruments; and Others, which mainly includes rental income and information channel services. The Company derives the majority of its revenue from Hong Kong.
78GF Score
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