Luxshare Precision Industry Co (HKSE:02475) Interest Coverage: 6.65 (As of Mar. 2026) — 52% Below Median

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HKSE:02475 Luxshare Precision Industry Co Ltd HKSE:02475
69 GF Score
Price HK$63.20
GF Value HK$55.38
Valuation Modestly Overvalued
! 5 Warning Signs
View Full Analysis

What is Luxshare Precision Industry Co Interest Coverage?

Luxshare Precision Industry Co HKSE:02475 +2.93% 69 Interest Coverage is 6.65 as of Mar. 2026, which is 52% below its 10-year median of 13.84. GuruFocus rates HKSE:02475 with a GF Score™ of 69/100 and a GF Value™ of HK$55.38 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,678 Hardware companies, Luxshare Precision Industry Co ranks worse than 61.98% 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. Luxshare Precision Industry Co's Operating Income for the three months ended in Mar. 2026 was HK$3,972 Mil. Luxshare Precision Industry Co's Interest Expense for the three months ended in Mar. 2026 was HK$-598 Mil. Luxshare Precision Industry Co's interest coverage for the quarter that ended in Mar. 2026 was 6.65. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Luxshare Precision Industry Co's Interest Coverage or its related term are showing as below:

HKSE:02475' s Interest Coverage Range Over the Past 10 Years
Min: 8.44   Med: 13.84   Max: 20.9
Current: 8.44


HKSE:02475's Interest Coverage is ranked worse than
61.98% of 1678 companies
in the Hardware industry
Industry Median: 13.645 vs HKSE:02475: 8.44

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


Luxshare Precision Industry Co  (HKSE:02475) 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 .


Luxshare Precision Industry Co Interest Coverage Related Terms


Luxshare Precision Industry Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Luxshare Precision Industry Co'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.

Luxshare Precision Industry Co Interest Coverage Chart

Luxshare Precision Industry Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.77 11.44 9.10 8.46 8.87

Luxshare Precision Industry Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 7.97 6.70 8.91 12.76 6.65

HKSE:02475 vs : Interest Coverage Comparison

For the Electronic Components subindustry, Luxshare Precision Industry 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.


Luxshare Precision Industry Co Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Luxshare Precision Industry Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Luxshare Precision Industry Co's Interest Coverage falls into.


HKSE:02475
69GF Score
Luxshare Precision Industry Co Ltd HKSE:02475
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luxshare Precision Industry 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:

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.

Luxshare Precision Industry Co'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, Luxshare Precision Industry Co's Interest Expense was HK$-1,950 Mil. Its Operating Income was HK$17,304 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$24,620 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*17304.081/-1949.962
=8.87

Luxshare Precision Industry Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Luxshare Precision Industry Co's Interest Expense was HK$-598 Mil. Its Operating Income was HK$3,972 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$32,022 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*3972.031/-597.579
=6.65

* 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 6.65 mean?
Luxshare Precision Industry Co (HKSE:02475) has a Interest Coverage of 6.65 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luxshare Precision Industry Co and its competitors. This is 52% below median its historical median of 13.84. Over the past decade, Luxshare Precision Industry Co's Interest Coverage has ranged from 8.44 to 20.90. According to the industry distribution chart, Luxshare Precision Industry Co ranks #1040 out of 1678 companies in the Hardware industry, placing it in the top 62%.
Is Luxshare Precision Industry Co's Interest Coverage too high?
Luxshare Precision Industry Co's current Interest Coverage of 6.65 is 52% below median its 10-year median of 13.84. Over the past 10 years, this metric has ranged from a low of 8.44 to a high of 20.90. The Hardware industry median Interest Coverage is 13.65. Luxshare Precision Industry Co's value of 6.65 is 51.3% below this industry median. Based on the distribution chart, Luxshare Precision Industry Co ranks #1040 out of 1678 companies in the Hardware industry, which is below the industry midpoint. Overall, Luxshare Precision Industry Co has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luxshare Precision Industry Co's Interest Coverage compare to ?
According to the Hardware industry distribution chart, Luxshare Precision Industry Co ranks #1040 out of 1678 companies for Interest Coverage. This places Luxshare Precision Industry Co in the lower half of its industry. The industry median Interest Coverage is 13.65. Luxshare Precision Industry Co's value of 6.65 is 51.3% below this benchmark. Historically, Luxshare Precision Industry Co's own Interest Coverage has ranged from 8.44 to 20.90 over the past decade. While the company's 10-year median is 13.84 vs. the industry median of 13.65, Luxshare Precision Industry Co 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.65, based on 1,678 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. Luxshare Precision Industry Co's current Interest Coverage of 6.65 is 51.3% 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 Luxshare Precision Industry Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxshare Precision Industry Co's current Interest Coverage is 6.65, which is 52% below median its own 10-year median of 13.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxshare Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Luxshare Precision Industry Co (HKSE:02475) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$55.38, compared to a current price of HK$63.20 — trading 14.1% above its estimated fair value. The current Interest Coverage is 6.65, which is 52% below median its 10-year median of 13.84 and 51.3% below the Hardware industry median of 13.65. Luxshare Precision Industry Co's overall GF Score™ is 69/100 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 Luxshare Precision Industry Co (HKSE:02475), the current Interest Coverage is 6.65 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 Luxshare Precision Industry Co (HKSE:02475) Overvalued in 2026?

Based on GuruFocus' analysis, Luxshare Precision Industry Co stock appears to be overvalued. The current stock price of HK$63.20 is trading 14.1% above its estimated GF Value™ of HK$55.38. GuruFocus considers Luxshare Precision Industry Co to be Modestly Overvalued.

Key valuation signals for HKSE:02475:

  • Interest Coverage: 6.65 (52% below median its 10-year median of 13.84)
  • GF Value™: HK$55.38 vs. price of HK$63.20 (14.1% above fair value)
  • GF Score™: 69/100 with 5 warning signs
  • Industry Position: 51.3% below the Hardware median (#1040 of 1678)

No single metric tells the full story. See the HKSE:02475 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luxshare Precision Industry Co Business Description

Comparable Companies
Other Exchanges 002475:China
Address No. 313 North Ring Road, Qingxi Town, Guangdong, Dongguan, CHN, 523642
Founded in 2004, Luxshare Precision is one of the world's largest manufacturers of cables and connectors and is a major supplier to Apple, which accounts for over 70% of revenue. Of Luxshare's 2025 sales, 80% is derived from the consumer electronics end market, while the remaining 20% is spread across the computer, communication, and automobile verticals. In nonconsumer businesses, Luxshare supplies cooling systems, optical interconnects, cables, power supplies, and other electric hardware. Luxshare employs almost 420,000 people and has manufacturing bases in China, India, and Vietnam. Through acquiring German automotive cabling firm Leoni, it has added 26 more production sites, mainly in Europe and Africa.
69GF Score

Get the complete analysis for HKSE:02475

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

HK$63.20
Price
HK$55.38
GF Value