Hongli GroupHLP +8.35%36 Interest Coverage is 4.24 as of Dec. 2025, which is 39% below its 10-year median of 6.97. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 458 Steel companies, Hongli Group ranks better than 53.49% 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. Hongli Group's
Operating Income
for the
six
months ended in Dec. 2025 was $1.15 Mil. Hongli Group's Interest Expense for the
six
months ended in Dec. 2025 was $-0.27 Mil.
Hongli Group's interest coverage for the quarter that ended in Dec. 2025 was 4.24.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hongli Group's Interest Coverage or its related term are showing as below:
HLP'
s Interest Coverage Range Over the Past 10 Years
Min: 1.61 Med: 6.97 Max: 11.97
Current: 5.18
HLP's Interest Coverage is ranked better than 53.49% of 458
companies
in the Steel industry
Industry Median: 4.445
vs HLP: 5.18
Hongli Group (NAS:HLP) 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 .
Hongli Group Interest Coverage Related Terms
Hongli Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hongli 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.
HLP vs HUDI, ZKIN, INHD: Interest Coverage Comparison
For the Steel subindustry, Hongli 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.
Hongli Group Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hongli Group's Interest Coverage falls into.
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.
Hongli Group (HLP) has a Interest Coverage of 4.24 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hongli Group and its competitors. This is 39% below median its historical median of 6.97. Over the past decade, Hongli Group's Interest Coverage has ranged from 1.61 to 11.97. According to the industry distribution chart, Hongli Group ranks #213 out of 458 companies in the Steel industry, placing it in the top 46.5%.
Is Hongli Group's Interest Coverage too high?
Hongli Group's current Interest Coverage of 4.24 is 39% below median its 10-year median of 6.97. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 11.97. The Steel industry median Interest Coverage is 4.45. Hongli Group's value of 4.24 is 4.6% below this industry median. Based on the distribution chart, Hongli Group ranks #213 out of 458 companies in the Steel industry, which is above the industry midpoint. Overall, Hongli Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's Interest Coverage compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #213 out of 458 companies for Interest Coverage. This puts Hongli Group in the upper half of its industry. The industry median Interest Coverage is 4.45. Hongli Group's value of 4.24 is 4.6% below this benchmark. Historically, Hongli Group's own Interest Coverage has ranged from 1.61 to 11.97 over the past decade. While the company's 10-year median is 6.97 vs. the industry median of 4.45, Hongli Group 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 458 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. Hongli Group's current Interest Coverage of 4.24 is 4.6% 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 Hongli Group and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current Interest Coverage is 4.24, which is 39% below median its own 10-year median of 6.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.53 — trading 50.5% above its estimated fair value. The current Interest Coverage is 4.24, which is 39% below median its 10-year median of 6.97 and 4.6% below the Steel industry median of 4.45. Hongli Group's overall GF Score™ is 36/100 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 Hongli Group (HLP), the current Interest Coverage is 4.24 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
Interest Coverage: 4.24 (39% below median its 10-year median of 6.97)
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
Industry Position: 4.6% below the Steel median (#213 of 458)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
36GF Score
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