WS-SK Target Group (HKSE:08427) Interest Coverage: 14.62 (As of Nov. 2025) — 58% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:08427 WS-SK Target Group Ltd HKSE:08427
60 GF Score
Price HK$4.00
GF Value HK$3.39
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is WS-SK Target Group Interest Coverage?

WS-SK Target Group HKSE:08427 60 Interest Coverage is 14.62 as of Nov. 2025, which is 58% above its 10-year median of 9.25. GuruFocus rates HKSE:08427 with a GF Score™ of 60/100 and a GF Value™ of HK$3.39 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 303 Building Materials companies, WS-SK Target Group ranks better than 55.45% 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. WS-SK Target Group's Operating Income for the six months ended in Nov. 2025 was HK$2.85 Mil. WS-SK Target Group's Interest Expense for the six months ended in Nov. 2025 was HK$-0.20 Mil. WS-SK Target Group's interest coverage for the quarter that ended in Nov. 2025 was 14.62. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:08427' s Interest Coverage Range Over the Past 10 Years
Min: 3.69   Med: 9.25   Max: 100.7
Current: 9.77


HKSE:08427's Interest Coverage is ranked better than
55.45% of 303 companies
in the Building Materials industry
Industry Median: 7.26 vs HKSE:08427: 9.77

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


WS-SK Target Group  (HKSE:08427) 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 .


WS-SK Target Group Interest Coverage Related Terms


WS-SK Target Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for WS-SK Target 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.

WS-SK Target Group Interest Coverage Chart

WS-SK Target Group Annual Data
Trend May16 May17 May18 May19 May20 May21 May22 May23 May24 May25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 5.58 9.25

WS-SK Target Group Semi-Annual Data
May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
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 11.87 0.00 19.41 4.44 14.62

HKSE:08427 vs CRH, VMC, MLM: Interest Coverage Comparison

For the Building Materials subindustry, WS-SK Target 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.


WS-SK Target Group Interest Coverage vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, WS-SK Target Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where WS-SK Target Group's Interest Coverage falls into.


HKSE:08427
60GF Score
WS-SK Target Group Ltd HKSE:08427
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

WS-SK Target 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.

WS-SK Target Group's Interest Coverage for the fiscal year that ended in May. 2025 is calculated as

Here, for the fiscal year that ended in May. 2025, WS-SK Target Group's Interest Expense was HK$-0.26 Mil. Its Operating Income was HK$2.42 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11.43 Mil.

Interest Coverage=-1* Operating Income (A: May. 2025 )/Interest Expense (A: May. 2025 )
=-1*2.423/-0.262
=9.25

WS-SK Target Group's Interest Coverage for the quarter that ended in Nov. 2025 is calculated as

Here, for the six months ended in Nov. 2025, WS-SK Target Group's Interest Expense was HK$-0.20 Mil. Its Operating Income was HK$2.85 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$11.15 Mil.

Interest Coverage=-1* Operating Income (Q: Nov. 2025 )/Interest Expense (Q: Nov. 2025 )
=-1*2.851/-0.195
=14.62

* 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 14.62 mean?
WS-SK Target Group (HKSE:08427) has a Interest Coverage of 14.62 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on WS-SK Target Group and its competitors. This is 58% above median its historical median of 9.25. Over the past decade, WS-SK Target Group's Interest Coverage has ranged from 3.69 to 100.70. According to the industry distribution chart, WS-SK Target Group ranks #135 out of 303 companies in the Building Materials industry, placing it in the top 44.6%.
Is WS-SK Target Group's Interest Coverage too high?
WS-SK Target Group's current Interest Coverage of 14.62 is 58% above median its 10-year median of 9.25. Over the past 10 years, this metric has ranged from a low of 3.69 to a high of 100.70. The Building Materials industry median Interest Coverage is 7.26. WS-SK Target Group's value of 14.62 is 101.4% above this industry median. Based on the distribution chart, WS-SK Target Group ranks #135 out of 303 companies in the Building Materials industry, which is above the industry midpoint. Overall, WS-SK Target Group has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WS-SK Target Group's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, WS-SK Target Group ranks #135 out of 303 companies for Interest Coverage. This puts WS-SK Target Group in the upper half of its industry. The industry median Interest Coverage is 7.26. WS-SK Target Group's value of 14.62 is 101.4% above this benchmark. Historically, WS-SK Target Group's own Interest Coverage has ranged from 3.69 to 100.70 over the past decade. While the company's 10-year median is 9.25 vs. the industry median of 7.26, WS-SK Target 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 7.26, based on 303 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. WS-SK Target Group's current Interest Coverage of 14.62 is 101.4% 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 WS-SK Target Group and its competitors. For the Building Materials industry, the median Interest Coverage is 7.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WS-SK Target Group's current Interest Coverage is 14.62, which is 58% above median its own 10-year median of 9.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WS-SK Target Group stock overvalued right now?
Based on GuruFocus' analysis, WS-SK Target Group (HKSE:08427) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$3.39, compared to a current price of HK$4.00 — trading 18% above its estimated fair value. The current Interest Coverage is 14.62, which is 58% above median its 10-year median of 9.25 and 101.4% above the Building Materials industry median of 7.26. WS-SK Target Group's overall GF Score™ is 60/100 with 2 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 WS-SK Target Group (HKSE:08427), the current Interest Coverage is 14.62 as of Nov. 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 WS-SK Target Group (HKSE:08427) Overvalued in 2026?

Based on GuruFocus' analysis, WS-SK Target Group stock appears to be overvalued. The current stock price of HK$4.00 is trading 18% above its estimated GF Value™ of HK$3.39. GuruFocus considers WS-SK Target Group to be Modestly Overvalued.

Key valuation signals for HKSE:08427:

  • Interest Coverage: 14.62 (58% above median its 10-year median of 9.25)
  • GF Value™: HK$3.39 vs. price of HK$4.00 (18% above fair value)
  • GF Score™: 60/100 with 2 warning signs
  • Industry Position: 101.4% above the Building Materials median (#135 of 303)

No single metric tells the full story. See the HKSE:08427 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


WS-SK Target Group Business Description

Address No. 18, Jalan LP 2A/2, Taman Lestari Perdana, Darul Ehsan, Seri Kembangan, SGR, MYS, 43300
WS-SK Target Group Ltd is an investment holding company engaged in the manufacturing and trading of precast concrete junction boxes. The company has three segments: Manufacturing and trading, which involves manufacturing and trading of precast concrete junction boxes; Other building materials and services, which involves trading of accessories and pipes and provision of mobile crane rental and ancillary services; and E-Commerce platform, which involves sourcing and sales of products online. Geographically, it derives a majority of revenue from Malaysia.
60GF Score

Get the complete analysis for HKSE:08427

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

HK$4.00
Price
HK$3.39
GF Value