Zibuyu Group (HKSE:02420) Interest Coverage: 53.02 (As of Dec. 2025) — 239% Above Median

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HKSE:02420 Zibuyu Group Ltd HKSE:02420
92 GF Score
Price HK$3.96
GF Value HK$6.13
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Zibuyu Group Interest Coverage?

Zibuyu Group HKSE:02420 +4.21% 92 Interest Coverage is 53.02 as of Dec. 2025, which is 239% above its 10-year median of 15.64. GuruFocus rates HKSE:02420 with a GF Score™ of 92/100 and a GF Value™ of HK$6.13 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 834 Retail - Cyclical companies, Zibuyu Group ranks better than 82.73% 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. Zibuyu Group's Operating Income for the six months ended in Dec. 2025 was HK$193 Mil. Zibuyu Group's Interest Expense for the six months ended in Dec. 2025 was HK$-4 Mil. Zibuyu Group's interest coverage for the quarter that ended in Dec. 2025 was 53.02. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:02420' s Interest Coverage Range Over the Past 10 Years
Min: 9.28   Med: 15.64   Max: 44.8
Current: 44.8


HKSE:02420's Interest Coverage is ranked better than
82.73% of 834 companies
in the Retail - Cyclical industry
Industry Median: 7.45 vs HKSE:02420: 44.80

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


Zibuyu Group  (HKSE:02420) 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 .


Zibuyu Group Interest Coverage Related Terms


Zibuyu Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zibuyu Group'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.

Zibuyu Group Interest Coverage Chart

Zibuyu Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 36.56 9.28 0.00 18.17 44.75

Zibuyu Group Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 19.28 16.72 35.15 53.02

HKSE:02420 vs AMZN, BABA, PDD: Interest Coverage Comparison

For the Internet Retail subindustry, Zibuyu Group'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.


Zibuyu Group Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Zibuyu Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zibuyu Group's Interest Coverage falls into.


HKSE:02420
92GF Score
Zibuyu Group Ltd HKSE:02420
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zibuyu Group 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.

Zibuyu Group's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Zibuyu Group's Interest Expense was HK$-7 Mil. Its Operating Income was HK$304 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$13 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*303.818/-6.789
=44.75

Zibuyu Group's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Zibuyu Group's Interest Expense was HK$-4 Mil. Its Operating Income was HK$193 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$13 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*193.364/-3.647
=53.02

* 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 53.02 mean?
Zibuyu Group (HKSE:02420) has a Interest Coverage of 53.02 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zibuyu Group and its competitors. This is 239% above median its historical median of 15.64. Over the past decade, Zibuyu Group's Interest Coverage has ranged from 9.28 to 44.80. According to the industry distribution chart, Zibuyu Group ranks #144 out of 834 companies in the Retail - Cyclical industry, placing it in the top 17.3%.
Is Zibuyu Group's Interest Coverage too high?
Zibuyu Group's current Interest Coverage of 53.02 is 239% above median its 10-year median of 15.64. Over the past 10 years, this metric has ranged from a low of 9.28 to a high of 44.80. The Retail - Cyclical industry median Interest Coverage is 7.45. Zibuyu Group's value of 53.02 is 611.7% above this industry median. Based on the distribution chart, Zibuyu Group ranks #144 out of 834 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zibuyu Group has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zibuyu Group's Interest Coverage compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zibuyu Group ranks #144 out of 834 companies for Interest Coverage. This places Zibuyu Group in the top 17% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.45. Zibuyu Group's value of 53.02 is 611.7% above this benchmark. Historically, Zibuyu Group's own Interest Coverage has ranged from 9.28 to 44.80 over the past decade. While the company's 10-year median is 15.64 vs. the industry median of 7.45, Zibuyu Group 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.45, based on 834 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. Zibuyu Group's current Interest Coverage of 53.02 is 611.7% 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 Zibuyu Group and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zibuyu Group's current Interest Coverage is 53.02, which is 239% above median its own 10-year median of 15.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zibuyu Group stock overvalued right now?
Based on GuruFocus' analysis, Zibuyu Group (HKSE:02420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.13, compared to a current price of HK$3.96 — trading 35.4% below its estimated fair value. The current Interest Coverage is 53.02, which is 239% above median its 10-year median of 15.64 and 611.7% above the Retail - Cyclical industry median of 7.45. Zibuyu Group's overall GF Score™ is 92/100 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 Zibuyu Group (HKSE:02420), the current Interest Coverage is 53.02 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 Zibuyu Group (HKSE:02420) Overvalued in 2026?

Based on GuruFocus' analysis, Zibuyu Group stock appears to be undervalued. The current stock price of HK$3.96 is trading 35.4% below its estimated GF Value™ of HK$6.13. GuruFocus considers Zibuyu Group to be Possible Value Trap.

Key valuation signals for HKSE:02420:

  • Interest Coverage: 53.02 (239% above median its 10-year median of 15.64)
  • GF Value™: HK$6.13 vs. price of HK$3.96 (35.4% below fair value)
  • GF Score™: 92/100 with 4 warning signs
  • Industry Position: 611.7% above the Retail - Cyclical median (#144 of 834)

No single metric tells the full story. See the HKSE:02420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zibuyu Group Business Description

Address Xincheng Road, Nanyuan Street, No. 108, Room 410, Linping District, Zhejiang Province, Hangzhou, CHN
Zibuyu Group Ltd is an investment holding company, and its subsidiaries are engaged in the design, procurement, and sale of apparel, footwear, and related products. The group sources products from OEM suppliers based on its designs and sells them globally through third-party e-commerce platforms and its self-operated online stores. Its sales channels include platforms such as Amazon, TikTok, Temu, and other third-party e-commerce platforms, as well as its own online stores. Its geographical segments include North America, Asia, Europe, and Others.
92GF Score

Get the complete analysis for HKSE:02420

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

HK$3.96
Price
HK$6.13
GF Value