Chinasoft International (HKSE:00354) Interest Coverage: 8.61 (As of Jun. 2026) — 21% Above Median

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HKSE:00354 Chinasoft International Ltd HKSE:00354
86 GF Score
Price HK$3.71
GF Value HK$5.80
Valuation Significantly Undervalued
! 7 Warning Signs
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What is Chinasoft International Interest Coverage?

Chinasoft International HKSE:00354 +2.07% 86 Interest Coverage is 8.61 as of Jun. 2026, which is 21% above its 10-year median of 7.10. GuruFocus rates HKSE:00354 with a GF Score™ of 86/100 and a GF Value™ of HK$5.80 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,698 Software companies, Chinasoft International ranks worse than 77.15% 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. Chinasoft International's Operating Income for the six months ended in Jun. 2026 was HK$443 Mil. Chinasoft International's Interest Expense for the six months ended in Jun. 2026 was HK$-52 Mil. Chinasoft International's interest coverage for the quarter that ended in Jun. 2026 was 8.61. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:00354' s Interest Coverage Range Over the Past 10 Years
Min: 4.02   Med: 7.1   Max: 12.84
Current: 5.44


HKSE:00354's Interest Coverage is ranked worse than
77.15% of 1698 companies
in the Software industry
Industry Median: 26.18 vs HKSE:00354: 5.44

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


Chinasoft International  (HKSE:00354) 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 .


Chinasoft International Interest Coverage Related Terms


Chinasoft International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Chinasoft International'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.

Chinasoft International Interest Coverage Chart

Chinasoft International 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 9.41 6.58 3.20 2.70 2.44

Chinasoft International Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
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 2.77 14.40 5.06 0.00 8.61

HKSE:00354 vs IBM, ACN, CTSH: Interest Coverage Comparison

For the Information Technology Services subindustry, Chinasoft International'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.


Chinasoft International Interest Coverage vs Software Industry

For the Software industry and Technology sector, Chinasoft International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Chinasoft International's Interest Coverage falls into.


HKSE:00354
86GF Score
Chinasoft International Ltd HKSE:00354
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chinasoft International 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.

Chinasoft International'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, Chinasoft International's Interest Expense was HK$-132 Mil. Its Operating Income was HK$316 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,418 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*316.35872081067/-131.955
=2.40

Chinasoft International's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the six months ended in Jun. 2026, Chinasoft International's Interest Expense was HK$-52 Mil. Its Operating Income was HK$443 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2,239 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*443.36661728732/-52.266
=8.48

* 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 8.61 mean?
Chinasoft International (HKSE:00354) has a Interest Coverage of 8.61 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chinasoft International and its competitors. This is 21% above median its historical median of 7.10. Over the past decade, Chinasoft International's Interest Coverage has ranged from 4.02 to 12.84. According to the industry distribution chart, Chinasoft International ranks #1310 out of 1698 companies in the Software industry, placing it in the top 77.1%.
Is Chinasoft International's Interest Coverage too high?
Chinasoft International's current Interest Coverage of 8.61 is 21% above median its 10-year median of 7.10. Over the past 10 years, this metric has ranged from a low of 4.02 to a high of 12.84. The Software industry median Interest Coverage is 26.18. Chinasoft International's value of 8.61 is 67.1% below this industry median. Based on the distribution chart, Chinasoft International ranks #1310 out of 1698 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1310 out of 1698 companies for Interest Coverage. This places Chinasoft International in the lower half of its industry. The industry median Interest Coverage is 26.18. Chinasoft International's value of 8.61 is 67.1% below this benchmark. Historically, Chinasoft International's own Interest Coverage has ranged from 4.02 to 12.84 over the past decade. While the company's 10-year median is 7.10 vs. the industry median of 26.18, Chinasoft International 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 Software company?
The median Interest Coverage among Software companies is 26.18, based on 1,698 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. Chinasoft International's current Interest Coverage of 8.61 is 67.1% 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 Chinasoft International and its competitors. For the Software industry, the median Interest Coverage is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current Interest Coverage is 8.61, which is 21% above median its own 10-year median of 7.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.71 — trading 36.1% below its estimated fair value. The current Interest Coverage is 8.61, which is 21% above median its 10-year median of 7.10 and 67.1% below the Software industry median of 26.18. Chinasoft International's overall GF Score™ is 86/100 with 7 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 Chinasoft International (HKSE:00354), the current Interest Coverage is 8.61 as of Jun. 2026. 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 Chinasoft International (HKSE:00354) Overvalued in 2026?

Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued. The current stock price of HK$3.71 is trading 36.1% below its estimated GF Value™ of HK$5.80. GuruFocus considers Chinasoft International to be Significantly Undervalued.

Key valuation signals for HKSE:00354:

  • Interest Coverage: 8.61 (21% above median its 10-year median of 7.10)
  • GF Value™: HK$5.80 vs. price of HK$3.71 (36.1% below fair value)
  • GF Score™: 86/100 with 7 warning signs
  • Industry Position: 67.1% below the Software median (#1310 of 1698)

No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chinasoft International Business Description

Address No. 2 Kexueyuan South Road, North Wing, 12th Floor, Raycom Infotech Park, Tower C, Haidian District, Beijing, CHN, 100190
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score

Get the complete analysis for HKSE:00354

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

HK$3.71
Price
HK$5.80
GF Value