Ben Graham prefers companies' interest coverage to be at least 5. HK Electric Investments and HK Electric Investments Ltd interest coverage is 3.96, which is low.
HK Electric Investments and HK Electric Investments (OTCPK:HKVTY) 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 .
HK Electric Investments and HK Electric Investments Interest Coverage Related Terms
HK Electric Investments and HK Electric Investments 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.
HK Electric Investments and HK Electric Investments Interest Coverage Chart
HK Electric Investments and HK Electric Investments Annual Data
HKVTY vs NEE, SO, DUK: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, HK Electric Investments and HK Electric Investments'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.
HK Electric Investments and HK Electric Investments Interest Coverage vs Utilities - Regulated Industry
HK Electric Investments and HK Electric Investments 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.
HK Electric Investments and HK Electric Investments (HKVTY) has a Interest Coverage of 4.48 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HK Electric Investments and HK Electric Investments and its competitors. This is near median its historical median of 4.53. Over the past decade, HK Electric Investments and HK Electric Investments' Interest Coverage has ranged from 3.78 to 6.20. According to the industry distribution chart, HK Electric Investments and HK Electric Investments ranks #220 out of 449 companies in the Utilities - Regulated industry, placing it in the top 49%.
Is HK Electric Investments and HK Electric Investments' Interest Coverage too high?
HK Electric Investments and HK Electric Investments' current Interest Coverage of 4.48 is near median its 10-year median of 4.53. Over the past 10 years, this metric has ranged from a low of 3.78 to a high of 6.20. The Utilities - Regulated industry median Interest Coverage is 3.78. HK Electric Investments and HK Electric Investments' value of 4.48 is 18.5% above this industry median. Based on the distribution chart, HK Electric Investments and HK Electric Investments ranks #220 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, HK Electric Investments and HK Electric Investments has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HK Electric Investments and HK Electric Investments' Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, HK Electric Investments and HK Electric Investments ranks #220 out of 449 companies for Interest Coverage. This puts HK Electric Investments and HK Electric Investments in the upper half of its industry. The industry median Interest Coverage is 3.78. HK Electric Investments and HK Electric Investments' value of 4.48 is 18.5% above this benchmark. Historically, HK Electric Investments and HK Electric Investments' own Interest Coverage has ranged from 3.78 to 6.20 over the past decade. While the company's 10-year median is 4.53 vs. the industry median of 3.78, HK Electric Investments and HK Electric Investments 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. HK Electric Investments and HK Electric Investments's current Interest Coverage of 4.48 is 18.5% 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 HK Electric Investments and HK Electric Investments and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HK Electric Investments and HK Electric Investments's current Interest Coverage is 4.48, which is near median its own 10-year median of 4.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HK Electric Investments and HK Electric Investments stock overvalued right now?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments (HKVTY) is currently considered Modestly Overvalued. The stock's GF Value™ is $6.97, compared to a current price of $7.80 — trading 11.9% above its estimated fair value. The current Interest Coverage is 4.48, which is near median its 10-year median of 4.53 and 18.5% above the Utilities - Regulated industry median of 3.78. HK Electric Investments and HK Electric Investments' overall GF Score™ is 77/100 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 HK Electric Investments and HK Electric Investments (HKVTY), the current Interest Coverage is 4.48 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 HK Electric Investments and HK Electric Investments (HKVTY) Overvalued in 2026?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments stock appears to be overvalued.
The current stock price of $7.80 is trading 11.9% above its estimated GF Value™ of $6.97.
GuruFocus considers HK Electric Investments and HK Electric Investments to be Modestly Overvalued.
Key valuation signals for HKVTY:
Interest Coverage: 4.48 (near median its 10-year median of 4.53)
GF Value™: $6.97 vs. price of $7.80 (11.9% above fair value)
Industry Position: 18.5% above the Utilities - Regulated median (#220 of 449)
No single metric tells the full story. See the HKVTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HK Electric Investments and HK Electric Investments Business Description
HK Electric Investments and HK Electric Investments Ltd is a fixed single investment trust in Hong Kong with a focus on the energy sector. The company is a vertically integrated power utility and its operations comprise the generation, transmission, distribution and supply of electricity to Hong Kong Island and Lamma Island. The company have one reporting segment which is the generation and supply of electricity to Hong Kong Island and Lamma Island.
77GF Score
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