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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. Smart City Development Holdings's
Operating Income
for the
six
months ended in Mar. 2026 was HK$-8.2 Mil. Smart City Development Holdings's Interest Expense for the
six
months ended in Mar. 2026 was HK$-0.1 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Smart City Development Holdings's Interest Coverage or its related term are showing as below:
HKSE:08268's Interest Coverage is not ranked *
in the Construction industry.
Industry Median: 8.02 * Ranked among companies with meaningful Interest Coverage only.
Smart City Development Holdings (HKSE:08268) 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 .
Smart City Development Holdings Interest Coverage Related Terms
Smart City Development Holdings 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.
Smart City Development Holdings Interest Coverage Chart
HKSE:08268 vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Smart City Development 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.
Smart City Development Holdings Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Smart City Development Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Smart City Development Holdings's Interest Coverage falls into.
Smart City Development 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:
Smart City Development Holdings did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Smart City Development Holdings (HKSE:08268) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Smart City Development Holdings and its competitors. According to the industry distribution chart, Smart City Development Holdings ranks #999999 out of 1365 companies in the Construction industry.
Is Smart City Development Holdings' Interest Coverage too high?
Smart City Development Holdings' current Interest Coverage is 0 (At Loss). Based on the distribution chart, Smart City Development Holdings ranks #999999 out of 1365 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Smart City Development Holdings has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Smart City Development Holdings' Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Smart City Development Holdings ranks #999999 out of 1365 companies for Interest Coverage. This places Smart City Development Holdings in the lower half of its industry. The industry median Interest Coverage is 8.02. 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 1,365 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. 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 Smart City Development 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. Smart City Development Holdings's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart City Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Smart City Development Holdings (HKSE:08268) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.19 — trading 48.6% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Smart City Development Holdings' overall GF Score™ is 39/100 with 6 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 Smart City Development Holdings (HKSE:08268), the current Interest Coverage is 0 (At Loss) 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 Smart City Development Holdings (HKSE:08268) Overvalued in 2026?
Based on GuruFocus' analysis, Smart City Development Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 48.6% below its estimated GF Value™ of HK$0.37.
GuruFocus considers Smart City Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:08268:
Interest Coverage: 0 (At Loss)
GF Value™: HK$0.37 vs. price of HK$0.19 (48.6% below fair value)
No single metric tells the full story. See the HKSE:08268 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart City Development Holdings Ltd is involved in securities investment, money lending, property investment and construction business sectors. The company has four segments: the construction segment, which is the key revenue-generating business, involves various processes including, building construction works, electrical and mechanical engineering works and fitting-out works; the securities investment segment is engaged in investment in securities; the property investment business segment is engaged in the holding of investment properties; and the money lending business segment. It has a business presence in Hong Kong and Mainland China.
39GF Score
Get the complete analysis for HKSE:08268
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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