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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. Hongcheng Environmental Technology Co's
Operating Income
for the
six
months ended in Dec. 2025 was HK$80.7 Mil. Hongcheng Environmental Technology Co's Interest Expense for the
six
months ended in Dec. 2025 was HK$-3.7 Mil.
Hongcheng Environmental Technology Co's interest coverage for the quarter that ended in Dec. 2025 was 21.96.
The higher the ratio, the stronger the company's financial strength is.
HKSE:02265'
s Interest Coverage Range Over the Past 10 Years
Min: 3.46 Med: 15.18 Max: 21.04
Current: 21.04
HKSE:02265's Interest Coverage is ranked better than 76.07% of 163
companies
in the Waste Management industry
Industry Median: 5.92
vs HKSE:02265: 21.04
Hongcheng Environmental Technology Co (HKSE:02265) 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 .
Hongcheng Environmental Technology Co Interest Coverage Related Terms
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co Interest Coverage Chart
HKSE:02265 vs WM, RSG, WCN: Interest Coverage Comparison
For the Waste Management subindustry, Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co Interest Coverage vs Waste Management Industry
For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hongcheng Environmental Technology Co's Interest Coverage falls into.
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co (HKSE:02265) has a Interest Coverage of 21.96 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hongcheng Environmental Technology Co and its competitors. This is 45% above median its historical median of 15.18. Over the past decade, Hongcheng Environmental Technology Co's Interest Coverage has ranged from 3.46 to 21.04. According to the industry distribution chart, Hongcheng Environmental Technology Co ranks #39 out of 163 companies in the Waste Management industry, placing it in the top 23.9%.
Is Hongcheng Environmental Technology Co's Interest Coverage too high?
Hongcheng Environmental Technology Co's current Interest Coverage of 21.96 is 45% above median its 10-year median of 15.18. Over the past 10 years, this metric has ranged from a low of 3.46 to a high of 21.04. The Waste Management industry median Interest Coverage is 5.92. Hongcheng Environmental Technology Co's value of 21.96 is 270.9% above this industry median. Based on the distribution chart, Hongcheng Environmental Technology Co ranks #39 out of 163 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Interest Coverage compare to WM and RSG?
According to the Waste Management industry distribution chart, Hongcheng Environmental Technology Co ranks #39 out of 163 companies for Interest Coverage. This places Hongcheng Environmental Technology Co in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.92. Hongcheng Environmental Technology Co's value of 21.96 is 270.9% above this benchmark. Historically, Hongcheng Environmental Technology Co's own Interest Coverage has ranged from 3.46 to 21.04 over the past decade. While the company's 10-year median is 15.18 vs. the industry median of 5.92, Hongcheng Environmental Technology Co 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 Waste Management company?
The median Interest Coverage among Waste Management companies is 5.92, based on 163 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. Hongcheng Environmental Technology Co's current Interest Coverage of 21.96 is 270.9% 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 Hongcheng Environmental Technology Co and its competitors. For the Waste Management industry, the median Interest Coverage is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongcheng Environmental Technology Co's current Interest Coverage is 21.96, which is 45% above median its own 10-year median of 15.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Interest Coverage is 21.96, which is 45% above median its 10-year median of 15.18 and 270.9% above the Waste Management industry median of 5.92. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 with 5 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 Hongcheng Environmental Technology Co (HKSE:02265), the current Interest Coverage is 21.96 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued.
The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61.
GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:02265:
Interest Coverage: 21.96 (45% above median its 10-year median of 15.18)
GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
Industry Position: 270.9% above the Waste Management median (#39 of 163)
No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score
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