HOKCF (Hong Kong and China Gas Co) Interest Coverage: 3.54 (As of Dec. 2025) — 34% Below Median


HOKCF Hong Kong and China Gas Co Ltd HOKCF
52 GF Score
Price $0.90
GF Value $0.84
Valuation Fairly Valued
! 7 Warning Signs
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What is Hong Kong and China Gas Co Interest Coverage?

Hong Kong and China Gas Co HOKCF 52 Interest Coverage is 3.54 as of Dec. 2025, which is 34% below its 10-year median of 5.37. GuruFocus rates HOKCF with a GF Score™ of 52/100 and a GF Value™ of $0.84 (Fairly Valued). The stock has 7 warning signs investors should review. Among 449 Utilities - Regulated companies, Hong Kong and China Gas Co ranks better than 52.12% 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. Hong Kong and China Gas Co's Operating Income for the six months ended in Dec. 2025 was $449 Mil. Hong Kong and China Gas Co's Interest Expense for the six months ended in Dec. 2025 was $-127 Mil. Hong Kong and China Gas Co's interest coverage for the quarter that ended in Dec. 2025 was 3.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hong Kong and China Gas Co's Interest Coverage or its related term are showing as below:

HOKCF' s Interest Coverage Range Over the Past 10 Years
Min: 3.62   Med: 5.37   Max: 6.93
Current: 4.12


HOKCF's Interest Coverage is ranked better than
52.12% of 449 companies
in the Utilities - Regulated industry
Industry Median: 3.78 vs HOKCF: 4.12

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


Hong Kong and China Gas Co  (OTCPK:HOKCF) 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 .


Hong Kong and China Gas Co Interest Coverage Related Terms


Hong Kong and China Gas Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hong Kong and China Gas Co'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.

Hong Kong and China Gas Co Interest Coverage Chart

Hong Kong and China Gas Co 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 5.18 4.71 3.67 3.62 4.12

Hong Kong and China Gas Co 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 2.93 3.89 3.36 4.71 3.54

HOKCF vs ATO, NI: Interest Coverage Comparison

For the Utilities - Regulated Gas subindustry, Hong Kong and China Gas Co'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.


Hong Kong and China Gas Co Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Hong Kong and China Gas Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hong Kong and China Gas Co's Interest Coverage falls into.


HOKCF
52GF Score
Hong Kong and China Gas Co Ltd HOKCF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hong Kong and China Gas Co 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.

Hong Kong and China Gas Co'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, Hong Kong and China Gas Co's Interest Expense was $-253 Mil. Its Operating Income was $1,045 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,619 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1045.15/-253.432
=4.12

Hong Kong and China Gas Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hong Kong and China Gas Co's Interest Expense was $-127 Mil. Its Operating Income was $449 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,619 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*449.221/-126.774
=3.54

* 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 3.54 mean?
Hong Kong and China Gas Co (HOKCF) has a Interest Coverage of 3.54 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hong Kong and China Gas Co and its competitors. This is 34% below median its historical median of 5.37. Over the past decade, Hong Kong and China Gas Co's Interest Coverage has ranged from 3.62 to 6.93. According to the industry distribution chart, Hong Kong and China Gas Co ranks #215 out of 449 companies in the Utilities - Regulated industry, placing it in the top 47.9%.
Is Hong Kong and China Gas Co's Interest Coverage too high?
Hong Kong and China Gas Co's current Interest Coverage of 3.54 is 34% below median its 10-year median of 5.37. Over the past 10 years, this metric has ranged from a low of 3.62 to a high of 6.93. The Utilities - Regulated industry median Interest Coverage is 3.78. Hong Kong and China Gas Co's value of 3.54 is 6.3% below this industry median. Based on the distribution chart, Hong Kong and China Gas Co ranks #215 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Hong Kong and China Gas Co has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hong Kong and China Gas Co's Interest Coverage compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Hong Kong and China Gas Co ranks #215 out of 449 companies for Interest Coverage. This puts Hong Kong and China Gas Co in the upper half of its industry. The industry median Interest Coverage is 3.78. Hong Kong and China Gas Co's value of 3.54 is 6.3% below this benchmark. Historically, Hong Kong and China Gas Co's own Interest Coverage has ranged from 3.62 to 6.93 over the past decade. While the company's 10-year median is 5.37 vs. the industry median of 3.78, Hong Kong and China Gas Co 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 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. Hong Kong and China Gas Co's current Interest Coverage of 3.54 is 6.3% 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 Hong Kong and China Gas Co 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. Hong Kong and China Gas Co's current Interest Coverage is 3.54, which is 34% below median its own 10-year median of 5.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong and China Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong and China Gas Co (HOKCF) is currently considered Fairly Valued. The stock's GF Value™ is $0.84, compared to a current price of $0.90 — trading 7.5% above its estimated fair value. The current Interest Coverage is 3.54, which is 34% below median its 10-year median of 5.37 and 6.3% below the Utilities - Regulated industry median of 3.78. Hong Kong and China Gas Co's overall GF Score™ is 52/100 with 7 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 Hong Kong and China Gas Co (HOKCF), the current Interest Coverage is 3.54 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 Hong Kong and China Gas Co (HOKCF) Overvalued in 2026?

Based on GuruFocus' analysis, Hong Kong and China Gas Co stock appears to be overvalued. The current stock price of $0.90 is trading 7.5% above its estimated GF Value™ of $0.84. GuruFocus considers Hong Kong and China Gas Co to be Fairly Valued.

Key valuation signals for HOKCF:

  • Interest Coverage: 3.54 (34% below median its 10-year median of 5.37)
  • GF Value™: $0.84 vs. price of $0.90 (7.5% above fair value)
  • GF Score™: 52/100 with 7 warning signs
  • Industry Position: 6.3% below the Utilities - Regulated median (#215 of 449)

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


Hong Kong and China Gas Co Business Description

Address 363 Java Road, 23rd Floor, North Point, Hong Kong, HKG
Hong Kong and China Gas Co Ltd, is the oldest public utility company in Hong Kong. The company's core business comprises the production and distribution of town gas in Hong Kong, with a monopoly on distribution and retail. The company is also investing in water, upstream gas, and new energies. The Group's principal activities are the production, distribution, and marketing of gas and related products or services, water supply and waste treatment, renewable energy businesses, extended businesses, and fuels businesses (Green Fuels) in Hong Kong and the Chinese mainland. The company operates in three segments: Gas, water and waste treatment, renewable energy, extended businesses, and related businesses, Green Fuels, and Property.
52GF Score

Get the complete analysis for HOKCF

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

$0.90
Price
$0.84
GF Value