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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 Financial Services Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was HK$65.1 Mil. China Financial Services Holdings's Interest Expense for the
six
months ended in Dec. 2025 was HK$-0.4 Mil.
China Financial Services Holdings's interest coverage for the quarter that ended in Dec. 2025 was 160.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China Financial Services Holdings's Interest Coverage or its related term are showing as below:
HKSE:00605'
s Interest Coverage Range Over the Past 10 Years
Min: 6.14 Med: 13.53 Max: 162.7
Current: 55.79
HKSE:00605's Interest Coverage is ranked better than 50.31% of 161
companies
in the Credit Services industry
Industry Median: 52.24
vs HKSE:00605: 55.79
China Financial Services Holdings (HKSE:00605) 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 Financial Services Holdings Interest Coverage Related Terms
China Financial Services 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.
China Financial Services Holdings Interest Coverage Chart
HKSE:00605 vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, China Financial Services 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.
China Financial Services Holdings Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Financial Services Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Financial Services Holdings's Interest Coverage falls into.
China Financial Services 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.
China Financial Services Holdings (HKSE:00605) has a Interest Coverage of 160.44 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Financial Services Holdings and its competitors. This is 1086% above median its historical median of 13.53. Over the past decade, China Financial Services Holdings' Interest Coverage has ranged from 6.14 to 162.70. According to the industry distribution chart, China Financial Services Holdings ranks #80 out of 161 companies in the Credit Services industry, placing it in the top 49.7%.
Is China Financial Services Holdings' Interest Coverage too high?
China Financial Services Holdings' current Interest Coverage of 160.44 is 1086% above median its 10-year median of 13.53. Over the past 10 years, this metric has ranged from a low of 6.14 to a high of 162.70. The Credit Services industry median Interest Coverage is 52.24. China Financial Services Holdings' value of 160.44 is 207.1% above this industry median. Based on the distribution chart, China Financial Services Holdings ranks #80 out of 161 companies in the Credit Services industry, which is above the industry midpoint. Overall, China Financial Services Holdings has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Financial Services Holdings' Interest Coverage compare to V and MA?
According to the Credit Services industry distribution chart, China Financial Services Holdings ranks #80 out of 161 companies for Interest Coverage. This puts China Financial Services Holdings in the upper half of its industry. The industry median Interest Coverage is 52.24. China Financial Services Holdings' value of 160.44 is 207.1% above this benchmark. Historically, China Financial Services Holdings' own Interest Coverage has ranged from 6.14 to 162.70 over the past decade. While the company's 10-year median is 13.53 vs. the industry median of 52.24, China Financial Services Holdings 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 52.24, based on 161 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 Financial Services Holdings's current Interest Coverage of 160.44 is 207.1% 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 Financial Services Holdings and its competitors. For the Credit Services industry, the median Interest Coverage is 52.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Financial Services Holdings's current Interest Coverage is 160.44, which is 1086% above median its own 10-year median of 13.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Financial Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Financial Services Holdings (HKSE:00605) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.47, compared to a current price of HK$0.86 — trading 81.9% above its estimated fair value. The current Interest Coverage is 160.44, which is 1086% above median its 10-year median of 13.53 and 207.1% above the Credit Services industry median of 52.24. China Financial Services Holdings' overall GF Score™ is 42/100 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 China Financial Services Holdings (HKSE:00605), the current Interest Coverage is 160.44 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 Financial Services Holdings (HKSE:00605) Overvalued in 2026?
Based on GuruFocus' analysis, China Financial Services Holdings stock appears to be overvalued.
The current stock price of HK$0.86 is trading 81.9% above its estimated GF Value™ of HK$0.47.
GuruFocus considers China Financial Services Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00605:
Interest Coverage: 160.44 (1086% above median its 10-year median of 13.53)
GF Value™: HK$0.47 vs. price of HK$0.86 (81.9% above fair value)
Industry Position: 207.1% above the Credit Services median (#80 of 161)
No single metric tells the full story. See the HKSE:00605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Financial Services Holdings Ltd is engaged in the provision of financing services in four operating regions, namely Hong Kong, Shenzhen, Chengdu, and Beijing. The clients are individual customers and corporate customers located in Hong Kong and the PRC. The group identifies potential customers through in-house sales teams, referrals, and networks with commercial banks, property developers, and small-to-medium-sized enterprises. The company's reportable segment are; financing services, and education service. Geographically, revenue is derived from the People's Republic of China.
42GF Score
Get the complete analysis for HKSE:00605
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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