Leader Education (HKSE:01449) Interest Coverage: 0.58 (As of Feb. 2026) — 92% Below Median

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HKSE:01449 Leader Education Ltd HKSE:01449
62 GF Score
Price HK$0.76
GF Value HK$0.35
Valuation Significantly Overvalued
! 11 Warning Signs
View Full Analysis

What is Leader Education Interest Coverage?

Leader Education HKSE:01449 +15.27% 62 Interest Coverage is 0.58 as of Feb. 2026, which is 92% below its 10-year median of 7.17. GuruFocus rates HKSE:01449 with a GF Score™ of 62/100 and a GF Value™ of HK$0.35 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 195 Education companies, Leader Education ranks worse than 97.95% 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. Leader Education's Operating Income for the six months ended in Feb. 2026 was HK$24.0 Mil. Leader Education's Interest Expense for the six months ended in Feb. 2026 was HK$-41.1 Mil. Leader Education's interest coverage for the quarter that ended in Feb. 2026 was 0.58. 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. Leader Education Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

HKSE:01449' s Interest Coverage Range Over the Past 10 Years
Min: 0.52   Med: 7.17   Max: 14.56
Current: 0.52


HKSE:01449's Interest Coverage is ranked worse than
97.95% of 195 companies
in the Education industry
Industry Median: 13.81 vs HKSE:01449: 0.52

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


Leader Education  (HKSE:01449) 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 .


Leader Education Interest Coverage Related Terms


Leader Education Interest Coverage Historical Data

* Premium members only.

The historical data trend for Leader Education'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.

Leader Education Interest Coverage Chart

Leader Education Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 5.11 9.22 9.39 1.27 0.93

Leader Education Semi-Annual Data
Aug17 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 2.60 0.66 2.00 0.47 0.58

HKSE:01449 vs EDU, TAL, LAUR: Interest Coverage Comparison

For the Education & Training Services subindustry, Leader Education'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.


Leader Education Interest Coverage vs Education Industry

For the Education industry and Consumer Defensive sector, Leader Education's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Leader Education's Interest Coverage falls into.


HKSE:01449
62GF Score
Leader Education Ltd HKSE:01449
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Leader Education 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.

Leader Education's Interest Coverage for the fiscal year that ended in Aug. 2025 is calculated as

Here, for the fiscal year that ended in Aug. 2025, Leader Education's Interest Expense was HK$-69.0 Mil. Its Operating Income was HK$63.9 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,045.7 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2025 )/Interest Expense (A: Aug. 2025 )
=-1*63.899/-68.95
=0.93

Leader Education's Interest Coverage for the quarter that ended in Feb. 2026 is calculated as

Here, for the six months ended in Feb. 2026, Leader Education's Interest Expense was HK$-41.1 Mil. Its Operating Income was HK$24.0 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,003.1 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*23.983/-41.149
=0.58

* 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 0.58 mean?
Leader Education (HKSE:01449) has a Interest Coverage of 0.58 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Leader Education and its competitors. This is 92% below median its historical median of 7.17. Over the past decade, Leader Education's Interest Coverage has ranged from 0.52 to 14.56. According to the industry distribution chart, Leader Education ranks #191 out of 195 companies in the Education industry, placing it in the top 97.9%.
Is Leader Education's Interest Coverage too high?
Leader Education's current Interest Coverage of 0.58 is 92% below median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 14.56. The Education industry median Interest Coverage is 13.81. Leader Education's value of 0.58 is 95.8% below this industry median. Based on the distribution chart, Leader Education ranks #191 out of 195 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Leader Education has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leader Education's Interest Coverage compare to EDU and TAL?
According to the Education industry distribution chart, Leader Education ranks #191 out of 195 companies for Interest Coverage. This places Leader Education in the lower half of its industry. The industry median Interest Coverage is 13.81. Leader Education's value of 0.58 is 95.8% below this benchmark. Historically, Leader Education's own Interest Coverage has ranged from 0.52 to 14.56 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 13.81, Leader Education 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 an Education company?
The median Interest Coverage among Education companies is 13.81, based on 195 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. Leader Education's current Interest Coverage of 0.58 is 95.8% 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 Leader Education and its competitors. For the Education industry, the median Interest Coverage is 13.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leader Education's current Interest Coverage is 0.58, which is 92% below median its own 10-year median of 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Education stock overvalued right now?
Based on GuruFocus' analysis, Leader Education (HKSE:01449) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.35, compared to a current price of HK$0.76 — trading 115.7% above its estimated fair value. The current Interest Coverage is 0.58, which is 92% below median its 10-year median of 7.17 and 95.8% below the Education industry median of 13.81. Leader Education's overall GF Score™ is 62/100 with 11 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 Leader Education (HKSE:01449), the current Interest Coverage is 0.58 as of Feb. 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 Leader Education (HKSE:01449) Overvalued in 2026?

Based on GuruFocus' analysis, Leader Education stock appears to be overvalued. The current stock price of HK$0.76 is trading 115.7% above its estimated GF Value™ of HK$0.35. GuruFocus considers Leader Education to be Significantly Overvalued.

Key valuation signals for HKSE:01449:

  • Interest Coverage: 0.58 (92% below median its 10-year median of 7.17)
  • GF Value™: HK$0.35 vs. price of HK$0.76 (115.7% above fair value)
  • GF Score™: 62/100 with 11 warning signs
  • Industry Position: 95.8% below the Education median (#191 of 195)

No single metric tells the full story. See the HKSE:01449 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Leader Education Business Description

Address Qunying Jie No. 33, Xueyuan Road, Limin Development Zone, Heilongjiang Province, Harbin, CHN, 150025
Leader Education Ltd is engaged in providing private higher education services in the People's Republic of China. The school is a degree-granting private formal university-level education institution that offers undergraduate majors in a wide range of subject areas, including engineering, management, economics, literature, and arts. It operates in one segment, being the provision of private higher education services in the PRC.
62GF Score

Get the complete analysis for HKSE:01449

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

HK$0.76
Price
HK$0.35
GF Value