Hospital of China (HKSE:03869) Interest Coverage: 1.58 (As of Dec. 2025) — 86% Below Median

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HKSE:03869 Hospital Corporation of China Ltd HKSE:03869
73 GF Score
Price HK$3.40
GF Value HK$5.53
Valuation Possible Value Trap
! 4 Warning Signs
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What is Hospital of China Interest Coverage?

Hospital of China HKSE:03869 73 Interest Coverage is 1.58 as of Dec. 2025, which is 86% below its 10-year median of 11.27. GuruFocus rates HKSE:03869 with a GF Score™ of 73/100 and a GF Value™ of HK$5.53 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 457 Healthcare Providers & Services companies, Hospital of China ranks worse than 88.62% 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. Hospital of China's Operating Income for the six months ended in Dec. 2025 was HK$73 Mil. Hospital of China's Interest Expense for the six months ended in Dec. 2025 was HK$-46 Mil. Hospital of China's interest coverage for the quarter that ended in Dec. 2025 was 1.58. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hospital of China's Interest Coverage or its related term are showing as below:

HKSE:03869' s Interest Coverage Range Over the Past 10 Years
Min: 1.56   Med: 11.27   Max: No Debt
Current: 1.56


HKSE:03869's Interest Coverage is ranked worse than
88.62% of 457 companies
in the Healthcare Providers & Services industry
Industry Median: 7.81 vs HKSE:03869: 1.56

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


Hospital of China  (HKSE:03869) 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 .


Hospital of China Interest Coverage Related Terms


Hospital of China Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hospital of China'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.

Hospital of China Interest Coverage Chart

Hospital of China 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 20.28 12.49 50.59 1.62 1.56

Hospital of China Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.42 2.10 1.16 1.55 1.58

HKSE:03869 vs HCA, THC, EHC: Interest Coverage Comparison

For the Medical Care Facilities subindustry, Hospital of China'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.


Hospital of China Interest Coverage vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Hospital of China's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hospital of China's Interest Coverage falls into.


HKSE:03869
73GF Score
Hospital Corporation of China Ltd HKSE:03869
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hospital of China 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.

Hospital of China'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, Hospital of China's Interest Expense was HK$-113 Mil. Its Operating Income was HK$176 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,103 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*176.083/-112.579
=1.56

Hospital of China's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hospital of China's Interest Expense was HK$-46 Mil. Its Operating Income was HK$73 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,103 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*72.604/-45.898
=1.58

* 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 1.58 mean?
Hospital of China (HKSE:03869) has a Interest Coverage of 1.58 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hospital of China and its competitors. This is 86% below median its historical median of 11.27. Over the past decade, Hospital of China's Interest Coverage has ranged from 1.56 to 10,000.00. According to the industry distribution chart, Hospital of China ranks #405 out of 457 companies in the Healthcare Providers & Services industry, placing it in the top 88.6%.
Is Hospital of China's Interest Coverage too high?
Hospital of China's current Interest Coverage of 1.58 is 86% below median its 10-year median of 11.27. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 10,000.00. The Healthcare Providers & Services industry median Interest Coverage is 7.81. Hospital of China's value of 1.58 is 79.8% below this industry median. Based on the distribution chart, Hospital of China ranks #405 out of 457 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Hospital of China has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hospital of China's Interest Coverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Hospital of China ranks #405 out of 457 companies for Interest Coverage. This places Hospital of China in the lower half of its industry. The industry median Interest Coverage is 7.81. Hospital of China's value of 1.58 is 79.8% below this benchmark. Historically, Hospital of China's own Interest Coverage has ranged from 1.56 to 10,000.00 over the past decade. While the company's 10-year median is 11.27 vs. the industry median of 7.81, Hospital of China 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 7.81, based on 457 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. Hospital of China's current Interest Coverage of 1.58 is 79.8% 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 Hospital of China and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hospital of China's current Interest Coverage is 1.58, which is 86% below median its own 10-year median of 11.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hospital of China stock overvalued right now?
Based on GuruFocus' analysis, Hospital of China (HKSE:03869) is currently considered Possible Value Trap. The stock's GF Value™ is HK$5.53, compared to a current price of HK$3.40 — trading 38.5% below its estimated fair value. The current Interest Coverage is 1.58, which is 86% below median its 10-year median of 11.27 and 79.8% below the Healthcare Providers & Services industry median of 7.81. Hospital of China's overall GF Score™ is 73/100 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 Hospital of China (HKSE:03869), the current Interest Coverage is 1.58 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 Hospital of China (HKSE:03869) Overvalued in 2026?

Based on GuruFocus' analysis, Hospital of China stock appears to be undervalued. The current stock price of HK$3.40 is trading 38.5% below its estimated GF Value™ of HK$5.53. GuruFocus considers Hospital of China to be Possible Value Trap.

Key valuation signals for HKSE:03869:

  • Interest Coverage: 1.58 (86% below median its 10-year median of 11.27)
  • GF Value™: HK$5.53 vs. price of HK$3.40 (38.5% below fair value)
  • GF Score™: 73/100 with 4 warning signs
  • Industry Position: 79.8% below the Healthcare Providers & Services median (#405 of 457)

No single metric tells the full story. See the HKSE:03869 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hospital of China Business Description

Address No.40, Xiaoyun Road, 4th Floor, Air China Century Plaza, Chaoyang District, Beijing, CHN
Hospital Corporation of China Ltd is an investment holding company that operates and manages hospitals in the People's Republic of China. In addition to offering hospital management services, it also provides supply chain services, other ancillary services, and sells pharmaceutical products. The company has three operating segments, namely, Hospital management services, General hospital services, and the sale of pharmaceutical products. The General Hospital services segment is the primary revenue generator for the company. All the company's revenue is generates from PRC.
73GF Score

Get the complete analysis for HKSE:03869

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

HK$3.40
Price
HK$5.53
GF Value