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Royal Deluxe HoldingsHKSE:03789 +10.10%55 Interest Coverage is 384.62 as of Mar. 2026, which is 2466% above its 10-year median of 14.99. GuruFocus rates HKSE:03789 with a GF Score™ of 55/100 and a GF Value™ of HK$0.07 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,370 Construction companies, Royal Deluxe Holdings ranks better than 90.44% 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. Royal Deluxe Holdings's
Operating Income
for the
six
months ended in Mar. 2026 was HK$10.0 Mil. Royal Deluxe Holdings's Interest Expense for the
six
months ended in Mar. 2026 was HK$-0.0 Mil.
Royal Deluxe Holdings's interest coverage for the quarter that ended in Mar. 2026 was 384.62.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Royal Deluxe Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Royal Deluxe Holdings's Interest Coverage or its related term are showing as below:
HKSE:03789'
s Interest Coverage Range Over the Past 10 Years
Min: 6.47 Med: 14.99 Max: 220.64
Current: 220.64
HKSE:03789's Interest Coverage is ranked better than 90.44% of 1370
companies
in the Construction industry
Industry Median: 8.02
vs HKSE:03789: 220.64
Royal Deluxe Holdings (HKSE:03789) 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 .
Royal Deluxe Holdings Interest Coverage Related Terms
Royal Deluxe Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Royal Deluxe Holdings'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.
HKSE:03789 vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Royal Deluxe 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.
Royal Deluxe Holdings Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Royal Deluxe Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Royal Deluxe Holdings's Interest Coverage falls into.
Royal Deluxe Holdings 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.
Royal Deluxe Holdings (HKSE:03789) has a Interest Coverage of 384.62 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royal Deluxe Holdings and its competitors. This is 2466% above median its historical median of 14.99. Over the past decade, Royal Deluxe Holdings' Interest Coverage has ranged from 6.47 to 220.64. According to the industry distribution chart, Royal Deluxe Holdings ranks #131 out of 1370 companies in the Construction industry, placing it in the top 9.6%.
Is Royal Deluxe Holdings' Interest Coverage too high?
Royal Deluxe Holdings' current Interest Coverage of 384.62 is 2466% above median its 10-year median of 14.99. Over the past 10 years, this metric has ranged from a low of 6.47 to a high of 220.64. The Construction industry median Interest Coverage is 8.02. Royal Deluxe Holdings' value of 384.62 is 4695.8% above this industry median. Based on the distribution chart, Royal Deluxe Holdings ranks #131 out of 1370 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Royal Deluxe Holdings has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Deluxe Holdings' Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Royal Deluxe Holdings ranks #131 out of 1370 companies for Interest Coverage. This places Royal Deluxe Holdings in the top 10% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.02. Royal Deluxe Holdings' value of 384.62 is 4695.8% above this benchmark. Historically, Royal Deluxe Holdings' own Interest Coverage has ranged from 6.47 to 220.64 over the past decade. While the company's 10-year median is 14.99 vs. the industry median of 8.02, Royal Deluxe Holdings 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 Construction company?
The median Interest Coverage among Construction companies is 8.02, based on 1,370 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. Royal Deluxe Holdings's current Interest Coverage of 384.62 is 4695.8% 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 Royal Deluxe Holdings and its competitors. For the Construction industry, the median Interest Coverage is 8.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Deluxe Holdings's current Interest Coverage is 384.62, which is 2466% above median its own 10-year median of 14.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Deluxe Holdings stock overvalued right now?
Based on GuruFocus' analysis, Royal Deluxe Holdings (HKSE:03789) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.23 — trading 227.1% above its estimated fair value. The current Interest Coverage is 384.62, which is 2466% above median its 10-year median of 14.99 and 4695.8% above the Construction industry median of 8.02. Royal Deluxe Holdings' overall GF Score™ is 55/100 with 8 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 Royal Deluxe Holdings (HKSE:03789), the current Interest Coverage is 384.62 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 Royal Deluxe Holdings (HKSE:03789) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Deluxe Holdings stock appears to be overvalued.
The current stock price of HK$0.23 is trading 227.1% above its estimated GF Value™ of HK$0.07.
GuruFocus considers Royal Deluxe Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:03789:
Interest Coverage: 384.62 (2466% above median its 10-year median of 14.99)
GF Value™: HK$0.07 vs. price of HK$0.23 (227.1% above fair value)
Industry Position: 4695.8% above the Construction median (#131 of 1370)
No single metric tells the full story. See the HKSE:03789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Deluxe Holdings Ltd is a subcontractor engaged in providing formwork erection as well as related ancillary services. The company also offers fit-out services. The majority of the operations of the group are located in Hong Kong and generate a majority of revenue from the provision of formwork erection and related ancillary services.
55GF Score
Get the complete analysis for HKSE:03789
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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