Wai Yuen Tong Medicine Holdings (HKSE:00897) Interest Coverage: 0.39 (As of Mar. 2026) — 34% Below Median

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HKSE:00897 Wai Yuen Tong Medicine Holdings Ltd HKSE:00897
38 GF Score
Price HK$0.29
GF Value HK$0.29
Valuation Fairly Valued
! 2 Warning Signs
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What is Wai Yuen Tong Medicine Holdings Interest Coverage?

Wai Yuen Tong Medicine Holdings HKSE:00897 38 Interest Coverage is 0.39 as of Mar. 2026, which is 34% below its 10-year median of 0.59. GuruFocus rates HKSE:00897 with a GF Score™ of 38/100 and a GF Value™ of HK$0.29 (Fairly Valued). The stock has 2 warning signs investors should review. Among 684 Drug Manufacturers companies, Wai Yuen Tong Medicine Holdings ranks worse than 146198.68% 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. Wai Yuen Tong Medicine Holdings's Operating Income for the six months ended in Mar. 2026 was HK$3.4 Mil. Wai Yuen Tong Medicine Holdings's Interest Expense for the six months ended in Mar. 2026 was HK$-8.7 Mil. Wai Yuen Tong Medicine Holdings's interest coverage for the quarter that ended in Mar. 2026 was 0.39. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Wai Yuen Tong Medicine Holdings's Interest Coverage or its related term are showing as below:


HKSE:00897's Interest Coverage is not ranked *
in the Drug Manufacturers industry.
Industry Median: 13.955
* Ranked among companies with meaningful Interest Coverage only.

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


Wai Yuen Tong Medicine Holdings  (HKSE:00897) 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 .


Wai Yuen Tong Medicine Holdings Interest Coverage Related Terms


Wai Yuen Tong Medicine Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Wai Yuen Tong Medicine Holdings'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.

Wai Yuen Tong Medicine Holdings Interest Coverage Chart

Wai Yuen Tong Medicine Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.77 0.39 0.98 0.00 0.00

Wai Yuen Tong Medicine Holdings Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 1.00 0.00 0.00 0.00 0.39

HKSE:00897 vs ZTS: Interest Coverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Wai Yuen Tong Medicine 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.


Wai Yuen Tong Medicine Holdings Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Wai Yuen Tong Medicine Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wai Yuen Tong Medicine Holdings's Interest Coverage falls into.


HKSE:00897
38GF Score
Wai Yuen Tong Medicine Holdings Ltd HKSE:00897
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Wai Yuen Tong Medicine 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:

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.

Wai Yuen Tong Medicine Holdings's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Wai Yuen Tong Medicine Holdings's Interest Expense was HK$-17.6 Mil. Its Operating Income was HK$-16.9 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Wai Yuen Tong Medicine Holdings did not have earnings to cover the interest expense.

Wai Yuen Tong Medicine Holdings's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Wai Yuen Tong Medicine Holdings's Interest Expense was HK$-8.7 Mil. Its Operating Income was HK$3.4 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*3.371/-8.744
=0.39

* 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 0.39 mean?
Wai Yuen Tong Medicine Holdings (HKSE:00897) has a Interest Coverage of 0.39 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Wai Yuen Tong Medicine Holdings and its competitors. This is 34% below median its historical median of 0.59. According to the industry distribution chart, Wai Yuen Tong Medicine Holdings ranks #999999 out of 684 companies in the Drug Manufacturers industry.
Is Wai Yuen Tong Medicine Holdings' Interest Coverage too high?
Wai Yuen Tong Medicine Holdings' current Interest Coverage of 0.39 is 34% below median its 10-year median of 0.59. The Drug Manufacturers industry median Interest Coverage is 13.96. Wai Yuen Tong Medicine Holdings' value of 0.39 is 97.2% below this industry median. Based on the distribution chart, Wai Yuen Tong Medicine Holdings ranks #999999 out of 684 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Wai Yuen Tong Medicine Holdings has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Wai Yuen Tong Medicine Holdings' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Wai Yuen Tong Medicine Holdings ranks #999999 out of 684 companies for Interest Coverage. This places Wai Yuen Tong Medicine Holdings in the lower half of its industry. The industry median Interest Coverage is 13.96. Wai Yuen Tong Medicine Holdings' value of 0.39 is 97.2% below this benchmark. While the company's 10-year median is 0.59 vs. the industry median of 13.96, Wai Yuen Tong Medicine 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 13.96, based on 684 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. Wai Yuen Tong Medicine Holdings's current Interest Coverage of 0.39 is 97.2% 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 Wai Yuen Tong Medicine Holdings and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 13.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wai Yuen Tong Medicine Holdings's current Interest Coverage is 0.39, which is 34% below median its own 10-year median of 0.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wai Yuen Tong Medicine Holdings stock overvalued right now?
Based on GuruFocus' analysis, Wai Yuen Tong Medicine Holdings (HKSE:00897) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.29 — trading right at its estimated fair value. The current Interest Coverage is 0.39, which is 34% below median its 10-year median of 0.59 and 97.2% below the Drug Manufacturers industry median of 13.96. Wai Yuen Tong Medicine Holdings' overall GF Score™ is 38/100 with 2 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 Wai Yuen Tong Medicine Holdings (HKSE:00897), the current Interest Coverage is 0.39 as of Mar. 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 Wai Yuen Tong Medicine Holdings (HKSE:00897) Overvalued in 2026?

Based on GuruFocus' analysis, Wai Yuen Tong Medicine Holdings stock appears to be undervalued. The current stock price of HK$0.29 is trading 0% below its estimated GF Value™ of HK$0.29. GuruFocus considers Wai Yuen Tong Medicine Holdings to be Fairly Valued.

Key valuation signals for HKSE:00897:

  • Interest Coverage: 0.39 (34% below median its 10-year median of 0.59)
  • GF Value™: HK$0.29 vs. price of HK$0.29 (0% below fair value)
  • GF Score™: 38/100 with 2 warning signs
  • Industry Position: 97.2% below the Drug Manufacturers median (#999999 of 684)

No single metric tells the full story. See the HKSE:00897 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Wai Yuen Tong Medicine Holdings Business Description

Address 39 Wang Kwong Road, Suite 3101, 31st Floor, Skyline Tower, Kowloon Bay, Kowloon, Hong Kong, HKG
Wai Yuen Tong Medicine Holdings Ltd is an investment holding company. The company's operating segment includes production and sale of Chinese pharmaceutical and health food products; production and sale of Western pharmaceutical and health food products and property investment and management and sale of properties. It generates maximum revenue from the production and sale of Chinese pharmaceutical and health food products which include manufacturing, processing, and sale of traditional Chinese medicine which includes Chinese medicinal products sold under the brand name Wai Yuen Tong. Geographically, it derives a majority of revenue from Mainland China.
38GF Score

Get the complete analysis for HKSE:00897

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

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