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Kato (Hong Kong) HoldingsHKSE:02189 61 Interest Coverage is 3.72 as of Mar. 2026, which is 76% below its 10-year median of 15.81. GuruFocus rates HKSE:02189 with a GF Score™ of 61/100 and a GF Value™ of HK$0.53 (Fairly Valued). The stock has 6 warning signs investors should review. Among 448 Healthcare Providers & Services companies, Kato (Hong Kong) Holdings ranks worse than 56.92% 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. Kato (Hong Kong) Holdings's
Operating Income
for the
six
months ended in Mar. 2026 was HK$19.9 Mil. Kato (Hong Kong) Holdings's Interest Expense for the
six
months ended in Mar. 2026 was HK$-5.4 Mil.
Kato (Hong Kong) Holdings's interest coverage for the quarter that ended in Mar. 2026 was 3.72.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Kato (Hong Kong) Holdings's Interest Coverage or its related term are showing as below:
HKSE:02189'
s Interest Coverage Range Over the Past 10 Years
Min: 4.12 Med: 15.81 Max: 219.11
Current: 6.11
HKSE:02189's Interest Coverage is ranked worse than 56.92% of 448
companies
in the Healthcare Providers & Services industry
Industry Median: 7.82
vs HKSE:02189: 6.11
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 .
Kato (Hong Kong) Holdings Interest Coverage Related Terms
Kato (Hong Kong) 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.
HKSE:02189 vs HCA, THC, DVA: Interest Coverage Comparison
For the Medical Care Facilities subindustry, Kato (Hong Kong) 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.
Kato (Hong Kong) Holdings Interest Coverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kato (Hong Kong) Holdings's Interest Coverage falls into.
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.
Kato (Hong Kong) Holdings (HKSE:02189) has a Interest Coverage of 3.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kato (Hong Kong) Holdings and its competitors. This is 76% below median its historical median of 15.81. Over the past decade, Kato (Hong Kong) Holdings' Interest Coverage has ranged from 4.12 to 219.11. According to the industry distribution chart, Kato (Hong Kong) Holdings ranks #255 out of 448 companies in the Healthcare Providers & Services industry, placing it in the top 56.9%.
Is Kato (Hong Kong) Holdings' Interest Coverage too high?
Kato (Hong Kong) Holdings' current Interest Coverage of 3.72 is 76% below median its 10-year median of 15.81. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 219.11. The Healthcare Providers & Services industry median Interest Coverage is 7.82. Kato (Hong Kong) Holdings' value of 3.72 is 52.4% below this industry median. Based on the distribution chart, Kato (Hong Kong) Holdings ranks #255 out of 448 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Kato (Hong Kong) Holdings has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato (Hong Kong) Holdings' Interest Coverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Kato (Hong Kong) Holdings ranks #255 out of 448 companies for Interest Coverage. This places Kato (Hong Kong) Holdings in the lower half of its industry. The industry median Interest Coverage is 7.82. Kato (Hong Kong) Holdings' value of 3.72 is 52.4% below this benchmark. Historically, Kato (Hong Kong) Holdings' own Interest Coverage has ranged from 4.12 to 219.11 over the past decade. While the company's 10-year median is 15.81 vs. the industry median of 7.82, Kato (Hong Kong) 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 Healthcare Providers & Services company?
The median Interest Coverage among Healthcare Providers & Services companies is 7.82, based on 448 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. Kato (Hong Kong) Holdings's current Interest Coverage of 3.72 is 52.4% 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 Kato (Hong Kong) Holdings and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 7.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato (Hong Kong) Holdings's current Interest Coverage is 3.72, which is 76% below median its own 10-year median of 15.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato (Hong Kong) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings (HKSE:02189) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.49 — trading 7.5% below its estimated fair value. The current Interest Coverage is 3.72, which is 76% below median its 10-year median of 15.81 and 52.4% below the Healthcare Providers & Services industry median of 7.82. Kato (Hong Kong) Holdings' overall GF Score™ is 61/100 with 6 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 Kato (Hong Kong) Holdings (HKSE:02189), the current Interest Coverage is 3.72 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 Kato (Hong Kong) Holdings (HKSE:02189) Overvalued in 2026?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings stock appears to be undervalued.
The current stock price of HK$0.49 is trading 7.5% below its estimated GF Value™ of HK$0.53.
GuruFocus considers Kato (Hong Kong) Holdings to be Fairly Valued.
Key valuation signals for HKSE:02189:
Interest Coverage: 3.72 (76% below median its 10-year median of 15.81)
GF Value™: HK$0.53 vs. price of HK$0.49 (7.5% below fair value)
Industry Position: 52.4% below the Healthcare Providers & Services median (#255 of 448)
No single metric tells the full story. See the HKSE:02189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services, and the sale of healthcare and medical goods and the provision of additional healthcare services to residents.
61GF Score
Get the complete analysis for HKSE:02189
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