HKTTY (HKT Trust and HKT) Interest Coverage: 6.05 (As of Dec. 2025) — 11% Above Median


HKTTY HKT Trust and HKT Ltd HKTTY
73 GF Score
Price $15.27
GF Value $13.44
Valuation Modestly Overvalued
! 5 Warning Signs
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What is HKT Trust and HKT Interest Coverage?

HKT Trust and HKT HKTTY 73 Interest Coverage is 6.05 as of Dec. 2025, which is 11% above its 10-year median of 5.47. GuruFocus rates HKTTY with a GF Score™ of 73/100 and a GF Value™ of $13.44 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 284 Telecommunication Services companies, HKT Trust and HKT ranks better than 53.17% 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. HKT Trust and HKT's Operating Income for the six months ended in Dec. 2025 was $629 Mil. HKT Trust and HKT's Interest Expense for the six months ended in Dec. 2025 was $-104 Mil. HKT Trust and HKT's interest coverage for the quarter that ended in Dec. 2025 was 6.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HKT Trust and HKT's Interest Coverage or its related term are showing as below:

HKTTY' s Interest Coverage Range Over the Past 10 Years
Min: 3.92   Med: 5.47   Max: 6.56
Current: 5.03


HKTTY's Interest Coverage is ranked better than
53.17% of 284 companies
in the Telecommunication Services industry
Industry Median: 4.685 vs HKTTY: 5.03

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


HKT Trust and HKT  (OTCPK:HKTTY) 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 .


HKT Trust and HKT Interest Coverage Related Terms


HKT Trust and HKT Interest Coverage Historical Data

* Premium members only.

The historical data trend for HKT Trust and HKT'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.

HKT Trust and HKT Interest Coverage Chart

HKT Trust and HKT 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 6.16 5.03 3.92 3.96 5.03

HKT Trust and HKT 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 4.20 3.20 4.75 4.09 6.05

HKTTY vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, HKT Trust and HKT'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.


HKT Trust and HKT Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, HKT Trust and HKT's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HKT Trust and HKT's Interest Coverage falls into.


HKTTY
73GF Score
HKT Trust and HKT Ltd HKTTY
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HKT Trust and HKT 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.

HKT Trust and HKT'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, HKT Trust and HKT's Interest Expense was $-218 Mil. Its Operating Income was $1,095 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,181 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1094.618/-217.715
=5.03

HKT Trust and HKT's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, HKT Trust and HKT's Interest Expense was $-104 Mil. Its Operating Income was $629 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,181 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*628.856/-103.974
=6.05

* 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 6.05 mean?
HKT Trust and HKT (HKTTY) has a Interest Coverage of 6.05 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HKT Trust and HKT and its competitors. This is 11% above median its historical median of 5.47. Over the past decade, HKT Trust and HKT's Interest Coverage has ranged from 3.92 to 6.56. According to the industry distribution chart, HKT Trust and HKT ranks #133 out of 284 companies in the Telecommunication Services industry, placing it in the top 46.8%.
Is HKT Trust and HKT's Interest Coverage too high?
HKT Trust and HKT's current Interest Coverage of 6.05 is 11% above median its 10-year median of 5.47. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 6.56. The Telecommunication Services industry median Interest Coverage is 4.69. HKT Trust and HKT's value of 6.05 is 29.1% above this industry median. Based on the distribution chart, HKT Trust and HKT ranks #133 out of 284 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, HKT Trust and HKT has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HKT Trust and HKT's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, HKT Trust and HKT ranks #133 out of 284 companies for Interest Coverage. This puts HKT Trust and HKT in the upper half of its industry. The industry median Interest Coverage is 4.69. HKT Trust and HKT's value of 6.05 is 29.1% above this benchmark. Historically, HKT Trust and HKT's own Interest Coverage has ranged from 3.92 to 6.56 over the past decade. While the company's 10-year median is 5.47 vs. the industry median of 4.69, HKT Trust and HKT 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. HKT Trust and HKT's current Interest Coverage of 6.05 is 29.1% 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 HKT Trust and HKT and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HKT Trust and HKT's current Interest Coverage is 6.05, which is 11% above median its own 10-year median of 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HKT Trust and HKT stock overvalued right now?
Based on GuruFocus' analysis, HKT Trust and HKT (HKTTY) is currently considered Modestly Overvalued. The stock's GF Value™ is $13.44, compared to a current price of $15.27 — trading 13.6% above its estimated fair value. The current Interest Coverage is 6.05, which is 11% above median its 10-year median of 5.47 and 29.1% above the Telecommunication Services industry median of 4.69. HKT Trust and HKT's overall GF Score™ is 73/100 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 HKT Trust and HKT (HKTTY), the current Interest Coverage is 6.05 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 HKT Trust and HKT (HKTTY) Overvalued in 2026?

Based on GuruFocus' analysis, HKT Trust and HKT stock appears to be overvalued. The current stock price of $15.27 is trading 13.6% above its estimated GF Value™ of $13.44. GuruFocus considers HKT Trust and HKT to be Modestly Overvalued.

Key valuation signals for HKTTY:

  • Interest Coverage: 6.05 (11% above median its 10-year median of 5.47)
  • GF Value™: $13.44 vs. price of $15.27 (13.6% above fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 29.1% above the Telecommunication Services median (#133 of 284)

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


HKT Trust and HKT Business Description

Address 979 King’s Road, Quarry Bay, 39th Floor, PCCW Tower, Taikoo Place, Hong Kong, HKG
HKT Trust and HKT Ltd is a triple-play telecommunications provider that operates through three segments, telecommunications services, mobile, and Other businesses. Telecommunication services are the larger business segment and generates revenue by providing technology and telecommunications and related services including enterprise solutions, total home solutions, healthtech services, and media entertainment. The Mobile segment represents mobile telecommunications businesses in Hong Kong, and the other segment comprises other new businesses such as The Club's loyalty platform and HKT Financial Services, and corporate support functions. The company's key revenue is generated from Hong Kong.
73GF Score

Get the complete analysis for HKTTY

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

$15.27
Price
$13.44
GF Value